Water Authority Solicits Proposals for Potential Joint Energy Storage Facility with City of San Diego

Potential 500-megawatt pumped storage project at the San Vicente
Reservoir site could help stabilize water rates

SAN DIEGO–(BUSINESS WIRE)–#LetterofInterest–The San Diego County Water Authority this week issued a Request for
Proposals for a potential joint energy storage project with the City of
San Diego that could lessen upward pressure on water rates and also
increase opportunities for renewable energy penetration throughout the
region by leveraging existing infrastructure at San Vicente Reservoir.

The potential project would consist of a closed-loop interconnection and
pumping system between the existing San Vicente Reservoir (which is
owned by the City of San Diego) near Lakeside and a new, smaller
reservoir located uphill. The system could provide up to 500 megawatts
of renewable energy. It would be used during off-peak energy-use
periods, pumping water uphill to the new upper reservoir to create a
bank of stored hydroelectric energy. That energy would be released to
the lower reservoir by gravity at times when other renewable energy
supplies, such as solar, are unavailable and when energy demand and
electricity costs are higher.

In addition to potentially adding renewable energy to the region, energy
storage could support electrical grid operations that are essential to
integrating large new supplies of other renewable electricity into the
California and Western power grids – notably solar, but also wind. It
also would make it easier to quickly ramp up or down energy generation
as needed.

“This potential project is an exciting and innovative opportunity to
optimize our water facilities to benefit our ratepayers while helping
the region as a whole meet its energy needs,” said Mark Muir, chair of
the Water Authority’s Board of Directors. “The competitive bidding
process will help ensure this potential project delivers maximum value.”

The Request for Proposals (RFP) calls for any interested parties to
provide details of their full-service teams qualified to perform all
activities to deliver an operational project. The Water Authority
expects to evaluate received proposals this fall, and to seek approval
from the Board to begin negotiations with a potential full-service team
by the end of this year.

In March, the Water Authority’s Board authorized the agency to begin
seeking detailed proposals for a potential energy storage facility at
the reservoir after a successful gauge of interest in the potential
project earlier in the year. That solicitation drew responses from 18
qualified entities.

Discussions with respondents to the interest solicitation substantiated
major findings from earlier project feasibility studies. These findings
included:

• The potential project would be a valuable resource. Located in
  an energy load center, the project would help stabilize the energy
  transmission grid operated by the California Independent System
  Operator (CAISO).
• The project size is appropriate. A 500-megawatt project with 5
  to 8 hours of energy storage would help investor-owned utilities meet
  a state mandate to procure 50 percent of their energy from renewable
  energy sources by 2030.
• Infrastructure exists to support the project. Existing
  resources the project could capitalize on include the San Vicente Dam
  and Reservoir and a nearby high-voltage transmission line.

The Water Authority already operates an energy storage facility at Lake
Hodges, which in 2011 began its operations of pumping water to
Olivenhain Reservoir and generating up to 40 megawatts of electricity on
demand for the region through downhill releases. The agency’s San
Vicente Dam Raise Project – completed in 2014 through a partnership with
the city of San Diego – provided additional opportunity for energy
storage because it created approximately 105,000 acre-feet of new
regional carryover storage water supplies and 52,000 acre-feet of new
emergency storage capacity, increasing the hydroelectric energy
potential at the reservoir site. The Water Authority owns the additional
storage capacity created by the dam raise and completed filling its
carryover storage capacity in summer 2016.

Proposals are due to the Water Authority by 2 p.m. (PST) on Sept. 12,
2017. Questions regarding the request must be emailed to the Water
Authority no later than 2 p.m. (PST) on Aug. 29. Submittals of both
proposals and technical questions regarding the request should be
directed to Jennifer Graffam at [email protected].
A pre-proposal meeting open to parties interested in submitting
responses will be held on July 24 at 2:30 p.m. in the Board Room at the
Water Authority’s Kearny Mesa office at 4677 Overland Avenue in San
Diego.

To view the RFP, go to www.sdcwa.org/contracting-opportunities,
and click on “Current and Upcoming Solicitations.”

One of the Water Authority’s 24 retail member agencies, the city of San
Diego maintains one of the world’s largest and most complex water
storage, treatment, and delivery systems. The city’s Public Utilities
Department imports water supplies for more than 1.3 million city
residents, which are among the 3.3 million ratepayers served by the
Water Authority.

For more information about the San Vicente Energy Storage Project study,
go to www.sdcwa.org/san-vicente-energy-storage-facility-study.

The San Diego County Water Authority sustains a $222 billion regional
economy and the quality of life for 3.3 million residents through a
multi-decade water supply diversification plan, major infrastructure
investments and forward-thinking policies that promote fiscal and
environmental responsibility. A public agency created in 1944, the Water
Authority delivers wholesale water supplies to 24 retail water
providers, including cities, special districts and a military base.

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Contacts

San Diego County Water Authority
James Palen
858-522-6621
office
619-384-2918 cell
[email protected]
or
Jason
Foster
858-522-6701 office
858-761-5950 cell
[email protected]