PG&E gets CAISO nod for distributed energy alternative to old plant

California utility Pacific Gas and Electric Co (PG&E) on Friday said it has secured approval from the California Independent System Operator (CAISO) for its Oakland Clean Energy Initiative (OCEI).

The initiative will replace an old fossil-fuel power plant in Oakland with a combination of distributed clean energy resources, including storage, and transmission substation upgrades. It is designed to ensure grid reliability after a 165-MW jet fuel-powered plant is retired. The system operator has a Reliability Must Run contract with the plant to buy power during peak periods.

PG&E said it will launch a two-month request-for-offers process this spring, seeking innovative and competitive proposals from providers of distributed energy resources. The solicitation is expected to result in 20 MW to 45 MW of clean energy resources, with start-up for the project expected in mid-2022.

According to PG&E, this will be the first instance of clean-energy resources being proactively deployed as an alternative to fossil-fuel generation for transmission reliability in its service area.

The company will seek cost recovery for the battery storage with the Federal Energy Regulatory Commission, and for other distributed energy resources with the California Public Utilities Commission.

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