California's Microgrid Dilemma: Speed or Competitive Bids?

As California’s wildfire season approaches, San Diego Gas & Electric (SDG&E) faces regulatory delays of up to two years for 100 MW of proposed storage-backed microgrids that aim to provide resiliency, especially to protect essential community services.

“As a utility company, our mandate and charge is to provide safe and reliable services. We think microgrids are a great strategy to do that,” said Wes Jones, communications manager for SDG&E. “Unfortunately, there is a lot of uncertainty,” he added.

That’s due to regulatory delays from the California Public Utilities Commission (CPUC). A proposed ruling from an administrative law judge calls for the utility to open up to third-party bidders the company’s seven microgrid projects, some of them already “shovel ready.”

The commission has put on hold a few times a decision on the proposed ruling. SDG&E expects additional intervenors to file comments in the case in mid-June (Proceeding A1802016).

“We feel strongly these microgrids are needed sooner rather than later" — SDG&E's Wes Jones

If the commission approves the projects as submitted, a few of them could be operating in 10 to 12 months, Jones said. Opening up the projects to third parties means the projects would be delayed about two years.

Argument for bidding

In a March filing before the commission, LS Power argued in favor of putting the projects out to bid. The independent power producer said that the utility's estimated price tag for the energy storage projects...Continue reading on Microgrid Knowledge.