DESRI and California public power utility Sacramento Municipal Utility District on June 19 announced that they have executed a long-term power purchase agreement for the Dry Creek Energy Storage project. Dry Creek is a 160 megawatt/640 megawatt-hour battery energy storage system located in Sacramento County, Calif.
SMUD and DESRI have worked on the project jointly over several years. Given the significant transmission infrastructure at the decommissioned Rancho Seco generating station, the BESS is optimally located to leverage the existing infrastructure and limit costly upgrades on the system, SMUD said.
The energy storage system will be charged using renewable energy and other clean sources available on SMUD’s grid, supporting the integration of sustainable power and enhancing grid reliability, the utility noted.
"This battery storage project represents another significant milestone in SMUD's Zero Carbon Plan as we work toward carbon-free electricity by 2030," said SMUD Chief Zero Carbon Officer Lora Anguay. "By enhancing our existing renewable infrastructure at Rancho Seco with battery technology, we're building a more flexible and reliable grid while enabling a more efficient integration of renewable energy."
DESRI and its affiliates develop, acquire, own, and operate long-term contracted renewable energy assets in the U.S. DESRI’s portfolio of contracted, operating, and in-construction renewable energy projects currently includes 70 solar and wind projects representing more than nine gigawatts of aggregate capacity.
As the nation’s sixth-largest, community-owned, not-for-profit electric service provider, SMUD has been providing low-cost, reliable electricity to Sacramento County for more than 75 years.
In 2023, SMUD’s power supply was, on average, 78 percent carbon free, and SMUD has a goal to reach zero carbon in its electricity production by 2030.
SMUD’s rates and customer bills are consistently among the lowest in California, and are today, on average, more than 50 percent lower than its neighboring investor-owned utility.
