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CPUC approves SDG&E-owned microgrids for resiliency

SDG&E announced that four microgrids equipped with energy storage will be added to the San Diego region to help the state meet high energy demand, particularly on hot summer days and in the peak evening hours after solar power dissipates.

San Diego Gas and Electric (SDG&E) announced that four microgrids equipped with energy storage will be added to the San Diego region to help the state meet high energy demand, particularly on hot summer days and in the peak evening hours after solar power dissipates.

Microgrids can operate independent of, or parallel to, the larger regional grid. These four will be installed at critical community facilities so that they can remain powered during unexpected outages.

The utility received approval on June 23 from the California Public Utilities Commission (CPUC) to build these projects, which will add a total of approximately 39 MW / 180 MWh of storage capacity at four company substations.


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The CPUC in December of 2021 had directed SDG&E to develop up to four microgrids conditioned on the requirement that the projects provide peak and net peak grid reliability benefits starting in the summers of 2022 and/or 2023. The utility was also directed to “operate its circuit-level energy storage microgrid projects to maximize ratepayer benefits and net revenue under least-cost dispatch during normal conditions in the California Independent System Operator (CAISO) market.” It said they should partially offset ratepayer costs for development of the projects with revenue received from market participation.

The chart and bullets below offer more details about the projects:

Project NameClairemont C278Paradise C320Boulevard C445Elliot C1266
CommunityClairemont MesaSkylineBoulevardTierrasanta
ESA CounterpartyMitsubishiMitsubishiMitsubishiMitsubishi
LTSA CounterpartyMitsubishiMitsubishiMitsubishiMitsubishi
BOP CounterpartyMorrow MeadowsMorrow MeadowsMorrow MeadowsMorrow Meadows
Energy Storage TechnologyLithium-Iron PhosphateLithium-Iron PhosphateLithium-Iron PhosphateLithium-Iron Phosphate
Beginning-of-Life Size9 MW 29 MWh10 MW 50.5 MWh10 MW 50.5 MWh10 MW 50.5 MWh
End-of-Life Size9 MW 22 MWh10 MW 40 MWh10 MW 40 MWh10 MW 40 MWh
Energy Reserved for Microgrid[1]3 MWh1.5 MWh1 MWh1.5 MWh
Resource Adequacy (RA)6.8 MW10 MW10 MW10 MW
Energy AttributesEnergy, Capacity/RA, Ancillary Services, and ResiliencyEnergy, Capacity/RA, Ancillary Services, and ResiliencyEnergy, Capacity/RA, Ancillary Services, and ResiliencyEnergy, Capacity/RA, Ancillary Services, and Resiliency
Estimated Commercial Operation Date7/31/20236/8/20235/1/20237/21/2023
Contract Term10 years10 years10 years10 years
  • The Clairemont substation microgrid will have the ability to power the Balboa Branch Library/Cool Zone, Fire Station 36, and local schools such as Lafayette Elementary and Sequoia Elementary Schools, Innovation and CPMA Middle Schools, and Madison High School
  • The Boulevard substation microgrid will have the ability to power the San Diego County Sheriff’s Department, Fire Station 47, Campo Reservation Fire Station, Cal Fire White Star Station, Campo Tribal Office, Campo Kumeyaay Nation Medical Center, Southern Indian Health Council Campo Clinic, the Boulevard Border Patrol Station, and the Boulevard Post Office
  • The Paradise substation microgrid will have the ability to power Fire Stations 51 and 32, the Southeast Division Police Department, and Bell Middle School, as well as Freese, Boone and Fulton Elementary
  • The Elliott substation microgrid will have the ability to power Fire Station 39, the Tierrasanta Public Library/Cool Zone, Tierrasanta Medical Center, Jean Farb Middle School, Canyon Hills High School, and Tierrasanta and Kumeyaay Elementary Schools.

The projects stemmed from Gov. Newsom’s Proclamation of a State Emergency issued last summer, which outlines California’s energy needs in the face of growing climate challenges. The four new projects, slated to be completed in summer 2023, are the latest of a series of energy storage investments by SDG&E, including the opening of Top Gun, a 30 MW facility, in June 2021 and Kearny Energy Storage, a 20 MW facility, in March 2022.

“These clean energy projects will help our region become more resilient to the impacts of our worsening climate,” said SDG&E Vice President of Energy Innovation Miguel Romero. “They will dispatch clean energy to the grid when needed and keep critical facilities like schools, Cool Zones, and fire stations powered during emergencies.”

As with other SDG&E owned storage projects, these facilities will be connected to the state energy market so that the California Independent System Operator (CAISO) can dispatch these resources as needed to balance energy supply and demand throughout the state.

More microgrids in San Diego

In related news, Industria Power on June 24 said that it was awarded a contract to construct eight microgrids by the City of San Diego via Gridscape Solutions.

As the project developer, Gridscape Solutions was awarded a California Energy Commission (CEC) Advanced Emergency Microgrid grant.  Gridscape then brought in its long-time partner, Industria Power to complete the construction of the project. Shell New Energies US will be the asset owner and operator for 25 years.

The City of San Diego prioritized eight building sites, including three recreation centers, two fire stations, and three police stations. The facility microgrids include 930 kW of solar photovoltaic systems, 2175 MWh of battery storage, and multiple electric vehicle (EV) charging stations.

The microgrids help the city to meet the goal of reducing electricity use by 25 percent of 2010 levels. This aligns with the City’s 2015 Climate Action Plan to create a more sustainable San Diego by eliminating half of all greenhouse gas emissions (GHGs) in the city by 2035.


[1] The Energy Reserved for Microgrid represents the amount of energy needed to support a transmission or substation outage duration of 33 minutes as outlined in SDG&E AL 3929-E-A.

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