SDG&E signs contracts for 83.5MW of long-duration energy storage

April 21, 2017
LinkedIn
Twitter
Reddit
Facebook
Email
83.5MW of energy storage will be spread across five four-hour local battery storage facilities in California. Source: ESE.org

In the spirit of harnessing clean energy and enhancing grid reliability, Californian utility San Diego Gas & Electric (SDG&E) has signed contracts for 83.5MW of energy storage.

The capacity will be spread across five new four-hour local battery storage facilities. The new facilities are expected to come on line between December 2019 and late 2021.

As well as the additional long-duration projects, the utility signed a contract to add a 4.5MW demand response programme. SDG&E has submitted all six contracts to the California Public Utilities Commission (PUC) for approval.

The PUC has set targets for investor-owned utilities (IOUs) such as SDG&E to procure certain amounts of energy storage by 2020. SDG&E’s target is 165MW; and these five new projects mean the utility is well on its way to meet this goal.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

If approved, two of the five lithium-ion battery energy storage facilities will be owned and operated by SDG&E to enhance regional energy reliability while maximising renewable energy use. One will be built by AES Energy Storage and the other by RES Americas, at 40MW and 30MW respectively. The other storage projects totalling 13.5MW to be built in Escondido, Poway and San Juan Capistrano will be owned by third parties including Powin Energy, Enel Green Power North America and Advanced Microgrid Solutions.

“These projects will add more flexibility to the system and help us to ensure reliability while providing greater levels of clean energy to all of our local communities,” said Emily Shults, SDG&E’s vice president of energy procurement. “By building these projects, SDG&E will remain at the forefront of helping the state achieve its bold clean-energy and carbon-emission targets.”

SDG&E recently completed what it claims to be the world’s largest lithium-ion battery storage facility in Escondido, with another large-scale facility in El Cajon. It now has 100MW of projects completed or in the pipeline.

24 March 2026
Dallas, Texas
The Energy Storage Summit USA is the only place where you are guaranteed to meet all the most important investors, developers, IPPs, RTOs and ISOs, policymakers, utilities, energy buyers, service providers, consultancies and technology providers in one room, to ensure that your deals get done as efficiently as possible. Book your ticket today to join us in 2026!

Read Next

Premium
December 11, 2025
Energy-Storage.news Premium speaks with John Farrell, Co-Director of The Institute for Local Self-Reliance (ILSR), on rising utility costs and the role energy storage can play.
December 10, 2025
NextEra Energy Resources and Meta have signed 11 power purchase agreements and two energy storage agreements totalling 2.5GW.
Premium
December 10, 2025
Clearway Energy Group has negotiated tolling agreements with SDG&E for one of its solar and storage complexes in Kern County, California.
December 9, 2025
In this Energy-Storage.news roundup, Energy Vault enters the Swiss energy storage market, ZincFive raises Series F financing, and Convergent Energy and Power secures a multimillion-dollar facility provided by NY Green Bank.
December 8, 2025
Vancouver-based helium and natural gas producer Desert Mountain Energy (DME) has signed a non-binding letter of intent (LOI) to form a joint venture (JV) to build and operate a sodium nickel chloride (SNC) battery manufacturing facility in Roswell, New Mexico.