Capital Dynamics is teaming with independent power producer Tenaska to develop a 2GW portfolio of nine battery energy storage projects in California, which continues to struggle with heat wave-related power shortages that led the main electric system operator last weekend to order the first rolling blackouts in 20 years.

The facilities will be sited in the highest electrical load centres that include Greater Los Angeles and the San Francisco Bay Area. They will help integrate renewables and strengthen reliability and resilience of the bulk electric grid managed by California Independent System Operator (CAISO) that serves 80% of the state.

“With its focus on achieving robust clean energy goals, California is poised for continued significant growth in energy storage demand,” said Benoit Allehaut, managing director of the clean energy infrastructure business at Capital Dynamics. “We hope to quickly contract resource adequacy with utilities and community choice aggregators (CCAs) to grow this portfolio.”

CCAs are cities, counties and other qualifying government entities that can purchase and/or generate electricity for their residents and businesses. CCAs have become major buyers of renewable energy, particularly solar.

California presently relies heavily on carbon-emitting fossil fueled power resources to meet peak energy needs, typically occurring after solar energy supplies drop off.

However, as the last week has shown with the ongoing heat wave, those that remain after multiple plant closures in recent years, could not provide enough electricity to compensate for record demand amid triple-digit temperatures and weak wind output.

Neighbouring states, also grappling with above-normal temperatures, were also unable to increase exports of power. The state has begun eyeing offshore wind as a potential new domestic power.

Capital Dynamic and Tenaska said the future battery storage units will help change that situation by storing and shifting clean energy production during the day to the most needed evening hours.

The two companies earlier collaborated on development of 24 solar PV projects elsewhere in the country.

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Capital Dynamics and Tenaska team on 2GW California energy storage