Pacific Gas and Electric Company (PG&E), in collaboration with East Bay Community Energy, is seeking innovative clean energy project proposals to meet local transmission reliability needs. The energy company and the public power supplier launched a Request for Offers (RFO) process.
The competitive solicitation is the next step in advancing PG&E’s Oakland Clean Energy Initiative. The initiative will result in a clean energy alternative to the existing fossil-fuel power plant at 50 Martin Luther King Jr. Way, which currently provides electric transmission-grid reliability in Oakland.
The Oakland Clean Energy Initiative will proactively deploy clean energy resources to provide transmission-grid reliability. It marks the first joint solicitation between a utility and a community choice aggregator, an entity through which cities or counties buy electricity for area residents and businesses.
“We look forward to beginning a competitive market solicitation process in coordination with East Bay Community Energy,” said Roy Kuga, vice president of Grid Integration and Innovation for PG&E. “We are fortunate to serve an area with an abundance of energy and technology innovators, and this is a terrific opportunity to find clean energy resources that both improve our grid’s resilience and help California meet its climate goals.”
PG&E will procure resources to meet transmission reliability needs, and East Bay Community Energy will procure the associated capacity, energy and renewable energy credits. Depending on the selected portfolio, the solicitation could result in 20 to 45 megawatts of clean energy resources. The combined PG&E and East Bay Community Energy solicitation will competitively source a portfolio of local clean resources such as renewable generation, energy storage and energy efficiency, and will support local jobs.
Offers will be accepted until June 15. PG&E will hold an informational webinar on May 9 for vendors interested in submitting proposals through the request-for-offers process.
After the market solicitation closes, PG&E and East Bay Community Energy will independently review bids and develop preferred portfolios of resources. PG&E expects to submit its portfolio to the California Public Utilities Commission for review and approval by early 2019.
The California Independent System Operator (ISO) has a Reliability Must Run contract with the existing power plant’s owner, Dynegy, to purchase electricity during peak periods. The ISO previously identified the 40-year-old power plant’s retirement as a risk to transmission reliability.
PG&E and the ISO collaborated to study how a cost-effective portfolio of distributed clean energy resources could become part of an alternative to the plant. The Oakland Clean Energy Initiative was the result of those studies. The system operator’s board approved the initiative on March 22 as a lower-cost alternative to new transmission lines or a new fossil-fuel plant.
“This is a first-of-its-kind collaboration to demonstrate that clean and local energy sources can be used effectively to replace dirty fossil fuel generation in our community while ensuring that the lights stay on for our residents and businesses,” said Dan Kalb, EBCE Vice-Chair and Oakland City Councilmember. “We are excited to be part of the solution to climate change while providing direct benefits to the people living in our communities.”
PG&E engaged a diverse group of stakeholders during development of the Oakland Clean Energy Initiative proposal including the City of Oakland; the International Brotherhood of Electric Workers Local 1245; the Port of Oakland; environmental groups such as Environmental Defense Fund, West Oakland Environmental Indicators Project and Natural Resources Defense Council; and businesses that neighbor the site.
More information about the request for offers can be found at http://www.pge.com/rfo.
Pacific Gas and Electric Company | http://www.pge.com