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Gas-battery hybrid peaker nears completion in capacity-hungry California

In the wake of rolling blackouts in August, California continues to bring online additional energy storage resources to help alleviate the state's capacity crunch. Power plant developer W Power LLC, for example, is in the final stages of completing its Stanton Energy Reliability Center in Orange County, a 98-MW natural gas-fired power plant with 20 MW of integrated battery storage.

The hybrid facility is on track to begin full commercial operation by Sept. 30 with the anticipated completion of two 10-MW lithium-ion battery storage units, the developer said in a regulatory filing to the California Energy Commission. The project's two 49-MW simple-cycle gas turbines from General Electric Co. began operating July 1, the company said.

Stanton is part of California's growing fleet of lithium-ion battery storage projects recently completed, under construction or in the advanced stages of development. That includes storage projects hybridized with solar energy facilities or co-located with gas plants, along with stand-alone facilities that are critical parts of the state's effort to reduce the role of natural gas in power generation.

New model for peakers

Fueled largely by projects in California, annual installed U.S. energy storage capacity is expected to more than double to 1,151 MW in 2020 before jumping to nearly 4,000 MW in 2021 and more than 7,000 MW in 2025, according to research firm Wood Mackenzie. But California regulators recently prolonged the lives of several aging gas plants, citing potential capacity shortages even as more battery storage and other nongas resources come online.

The California Energy Commission, the state's main thermal power plant siting authority, in 2018 approved construction of the Stanton project, which is estimated to cost $150 million and is underpinned by a 20-year resource adequacy contract with Southern California Edison Co. The Edison International utility previously demonstrated the design, featuring a proprietary software system developed by GE and W Power-affiliate Wellhead Electric Co. Inc., at some of its existing peaker plants.

Stanton is designed to operate during periods of peak power demand, providing "greenhouse gas-free spinning reserve, high-speed regulation, primary frequency response, and voltage support with the combined response of the gas turbine and battery storage system," according to the Energy Commission.