The Clean Power Alliance (CPA), a community choice aggregator that serves about three million customers in Southern California, is adding more than 190 megawatts (MW) of battery storage capacity to its portfolio by 2023 through two recent procurement agreements. Both projects will be paired with solar facilities.
CPA’s board of directors last week approved a power purchase agreement (PPA) for the Daggett Solar and Storage project and an amended agreement for the Arlington Solar project. Together, the two agreements will add 123 MW of renewable energy capacity and 193.5 MW of battery storage to CPA’s long-term portfolio.
Under the 15-year PPA, Clearway Energy Group will supply CPA with 123 MW of solar energy and 61.5 MW/246 megawatt-hours (MWh) of battery storage capacity. The PPA represents a portion of the larger Daggett Solar project, which is located near a former gas plant in San Bernardino County. The project is scheduled to begin operation in March 2023.
By pairing storage capability to the Daggett Solar project, CPA said it would be able to provide around-the-clock renewable power to enhance the reliability of California’s grid. The project will also provide nearly $20 million in local property taxes.
CPA also signed a PPA for 132 MW/528 MWh of energy storage that will come from an expansion of the 233 MW Arlington solar project in Riverside County, for which CPA already has a PPA. The new storage facility will be owned and operated by a subsidiary of NextEra Energy Resources and is due online in August 2022.
By combining the 15-year PPAs, CPA said it was able to procure battery storage capacity at a lower cost than if it were procuring storage from a standalone facility because of the investment tax credit benefits available by co-locating storage with a solar project.
“We are excited that in 2020 alone, we have signed contracts for 686 MW of much-needed new battery storage while continuing to expand the supply of renewable energy,” Natasha Keefer, director of power planning and procurement for CPA, said in a statement. “Time is of the essence to build our more resilient future and Clean Power Alliance is stepping up with meaningful commitments that will fight climate change.”
Separately, the Clean Power Alliance also announced last week that it had fully repaid its $10 million start-up loan provided by the County of Los Angeles.