Announcement: Oakland Battery Storage Project Contract Terminated

Oakland Battery Storage Project Contract Terminated

EBCE partner PG&E ends their contract with developers

Oakland, CA – East Bay Community Energy (EBCE) regrets to inform the public that the contracts for battery storage projects associated with the Oakland Clean Energy Initiative (OCEI) are not able to move forward. In June 2019 EBCE signed a contract to fund a battery storage installation to provide EBCE with local resource adequacy – electricity capacity that is available to serve demand even under stressful system conditions. The anchor project which was intended to be a 30 to 40 megawatt (MW) battery with a 4-hour duration was in collaboration with Vistra Energy as the developer. The project was to be located near Jack London Square in Oakland at the site of the Dynegy Peaker Plant that is currently required to operate under a Reliability Must Run (RMR) designation from the California Independent System Operator. The battery project that was awarded by both EBCE and Pacific Gas and Electric (PG&E) through a first-of-its-kind joint solicitation between an Investor Owned Utility and a community choice energy aggregator (CCA) was expected to allow for the closure of the Peaker Plant.

The project was experiencing interconnection-related delays and PG&E was in the process of a lengthy CPUC approval, following execution of its contract in spring 2020. While the project faced challenges and PG&E had opposition in obtaining CPUC approval, EBCE continued to support the OCEI. In April 2021, PG&E elected to terminate the Vistra contract and a smaller project with esVolta. As a joint solicitation, EBCE’s arrangement with Vistra is contingent on PG&E having an agreement in place and obtaining CPUC approval. EBCE is frustrated and disappointed with these developments. However, EBCE continues to be committed to the closure of the Oakland Peaker Plant. It will continue to be a priority and EBCE is trying to work collaboratively with all parties in finding a solution and a new path forward.

Since signing the OCEI contract, EBCE has signed six more contracts to develop 550 MW of wind and solar power, as well as 110 MW of battery energy storage. One project, a utility-scale solar project in Rosamond, began operating earlier this year and a 57.5 MW wind project in Livermore is almost complete. Details at ebce.org/power-projects.