Southern California Edison To Bring Online 50 MW Tesla Powerpack 2 Systems

7 months ago by Mark Kane 4

Tesla Powerpack 2

California will shortly bring more Tesla energy storage systems online in Southern California Edison’s (SCE’s) service area.

The 50 MW projects (utilizing Tesla’s Powerpack 2) are conducted by Macquarie Capital, the corporate advisory, capital markets and principal investing arm of Macquarie Group (a global finance corporation).

Tesla Powerpack 2

Beside the large scale of storage systems, Macquarie boasts an industry-first battery storage project financing.

According to the press release, SCE will actually purchase capacity from the Macquarie-owned fleet of behind-the-meter, battery-based energy storage systems, under a 10-year capacity contract to provide load reduction services, as part of SCE’s plan to modernize the grid by 2022.

“Macquarie Capital, the corporate advisory, capital markets and principal investing arm of Macquarie Group (“Macquarie”) (ASX: MQG; ADR: MQBKY), today announced the closing of the first non-recourse project financing of battery-based energy storage systems with CIT Bank.

The financing, led by CIT, backs a 50MW fleet of behind-the-meter, battery storage systems located in certain grid-constrained pockets of the West Los Angeles Basin service territory of Southern California Edison (“SCE”) that Macquarie Capital acquired from Advanced Microgrid Solutions (“AMS”) in August 2016.
Since the acquisition, Macquarie and AMS have been jointly developing and constructing the portfolio, which is expected to come online in phases over the next 12-24 months.”

“The fleet of energy storage systems, which will be located at various large-load commercial,industrial and government host sites in Los Angeles and Orange counties, will be used for utility grid services including flexible and reserve capacity, solar integration and voltage management in addition to retail energy services such as demand management, back up generation and enhanced power quality.

AMS, which led the development of the portfolio, will serve as the asset manager of the projects.”

“”The era of energy storage has begun.” SCE, which is California’s second largest utility, will purchase capacity from the Macquarie-owned fleet of behind-the-meter, battery-based energy storage systems under 10-year capacity contracts to provide load reduction services as part of SCE’s plan to modernize the grid by 2022.”

 

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4 responses to "Southern California Edison To Bring Online 50 MW Tesla Powerpack 2 Systems"

  1. Apkungen says:

    I don’t understand why you’re writing MW? The power the station can provide? Is that really that relevant? You must mean MWh? First I thought you didn’t know what’s what but you seem to be writing MW over and over like it’s on purpose. Please explain…

    1. Jay Cole says:

      Apkungen,

      Because that is what it is – a 50 MW station. When you are talking about utility scale usage, the output offest of the ESS is the more important variable in shaving off the peak demand on an ongoing basis.

      In fact, SCE don’t even mention the capacity…but one assumes given the traditional setup/specs on the PW 2, the capacity is 200 MWh in this case.

      1. Malevolence says:

        The original “Powerpack” (which is just the battery with some brains) and the associated power conversion systems (PCS – think inverter plus charger) were discreet components and could be coupled in series and parallel to allow for flexibility in the MWh/MW ratio and scaled to whatever size is needed. I assume has been retained for the Powerpack 2 setup.

        Four hours has been popular for the California projects to ride out the peak of the “duck” curve. This is all being driven by trying to keep natural gas plants completely off to keep use down due to the Aliso Canyon leak. Most energy storage projects have been for frequency regulation up to this point and have a much smaller ratio, like 1:1 not 4:1, so there really is no “normal” yet. This ratio has more to do with natural gas plant cycling in southern California than anything else at this point. The ratio for solar/wind storage could likely be different – especially as batteries come down in price and the PCS’s don’t change much. I think it will continue to be application specific for some time, so all of the players in the industry are intentionally keeping those two numbers decoupled, at least for now.

        1. Jay Cole says:

          I confess I just went with the specs from Tesla’s last/most recent project that was build out for a 4 hour capacity…seemed reasonable to assume this was similar, as you have more eloquently pointed out, (=