San Diego launches RFP for 500-MW hydro storage facility

The San Diego County Water Authority (USA) has issued a Request for Proposals (RFP) for a potential 500-megawatt pumped storage project at the San Vicente Reservoir site 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 MW 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.

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.

Mark Muir, chair of the Water Authority’s Board of Directors, said:

“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. The competitive bidding process will help ensure this potential project delivers maximum value.”

Proposals are due to the Water Authority by 2 p.m. (PST) on Septemeber 12, 2017. Questions regarding the request must be emailed to the Water Authority no later than 2 p.m. (PST) on Aug. 29.

You can have further information in our business opportunities section.