Guest post by David Middleton
Real Clear Energy is always good for a daily laugh…
The problem with today’s power grid isn’t the lack of electricity but rather the lack of it at certain times. The United States has progressively moved towards adding renewable energy to the grid but solar and wind power are rather intermittent. Worst of all, some of this power is completely wasted because our grid is unable to store it properly. Tesla, along with other companies, has begun to solve this pressing issue.
Three new storage plants are in the works and they’re unlike anything before. The plants will be completely reliant on lithium ion storage. Lithium powered batteries have seen rapid reductions in price in the past several year’s thanks to the high demand for electric cars. Tesla is also developing a gigafactory in Nevada to mass produce these batteries, some of which will be used in the storage plant. AES Corp. and Altagas Ltd. are the other two companies creating battery plants in California. The Altagas plant was activated January 27th. AES has another battery plant in Arizona scheduled to go online within the next several months as well as a project internationally in India.
These plants will reduce the number of blackouts due to power shortage at peak hours and prevent loss of power generated but not used. When it comes to renewables there’s virtually no carbon dioxide emission or risk of spills harming the environment. Electricity generated from renewables will be stored appropriately and reinforce the notion that our power grid really can go green.
It’s unlikely crude benchmarks will react towards this news but future plans may prove otherwise. Oil majors are beginning to worry when demand will peak, knowing that cloud may be just over the horizon. Investors shouldn’t concern themselves with an approaching downward trend yet and should continue to ride out the OPEC supply cuts.
“When it comes to renewables there’s virtually no carbon dioxide emission or risk of spills harming the environment. Electricity generated from renewables will be stored appropriately and reinforce the notion that our power grid really can go green.”
“AltaGas” sounds like an odd name for a *renewables* company…
AltaGas also continues to work on repowering the existing Pomona Facility. In the first quarter of 2016 AltaGas submitted an application with the California Energy Commission to repower the Pomona Facility to a flexible, fast ramping peaking facility under the small power plant exemption process. It is anticipated that the application review process will be approximately 12 months and include a review of the emissions profile by the local air district. The existing Pomona Facility is a 44.5 MW gas-fired peaking plant strategically located in the Los Angeles load pocket. The repowered facility could be comprised of more efficient gas-fired technology with capacity up to 100 MW. Following approval, AltaGas will be ready to bid the repowered Pomona facility into upcoming RFOs or enter into other bilateral contract arrangements.
AltaGas owns six natural gas-fired power generating facilities in California that safely produce power. AltaGas has a long-standing history of building trust and treating stakeholders with respect in the communities where it develops and operates projects.
AltaGas is an energy infrastructure company with a focus on natural gas, power and regulated utilities. AltaGas creates value by acquiring, growing and optimizing its energy infrastructure, including a focus on clean energy sources. For more information visit: www.altagas.ca
Okay… So… Let me get this straight… Southern California Edison signed a 10-yr deal to purchase 80 MWh/d of stored electricity… Electricity stored from a peaking natural gas-fired plat??? Why not just build a combined cycle natural gas plant?
At least Professor McDonald got one thing right…
“It’s unlikely crude benchmarks will react towards this news…”
The AES storage system will actually store solar PV generated electricity… A whopping 2 MW worth.