California’s Clean Power Alliance adds 100-MW battery peaker in storage surge

S&P Global

Clean Power Alliance, California’s largest community choice aggregator, approved an agreement with Luna Storage LLC, an affiliate of Sustainable Power Group LLC, for a new 100-MW battery array in Los Angeles County.

The alliance, which serves roughly 3 million customers in Los Angeles and Ventura counties, recently approved the 15-year contract, which will be signed April 9, according to Clean Power Alliance officials. Sustainable Power Group, or sPower, a subsidiary of power plant operator AES Corp., is under contract to energize the Luna Storage project by July 2021.

Clean Power Alliance’s first battery deal is intended to balance its growing portfolio of variable renewable energy resources and help fulfill resource adequacy retirements set by the California Public Utilities Commission. The project will use power from the grid to charge lithium-ion batteries during the day, when California often has an oversupply of renewable power, and release it for four hours in the evening, when electricity demand peaks.

“We need to start building the infrastructure and the assets to accommodate [solar power’s] intermittency,” Ted Bardacke, executive director of the Clean Power Alliance, said in an interview.

Luna Storage marks the latest large-scale battery project in California in the advanced stages of development or under construction as the state turns to batteries to plug an emerging capacity gap while decarbonizing its power sector.

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