LONG TERM RENEWABLE
ENERGY AND RESOURCE
ADEQUACY CONTRACTS
San José City Council
January 24, 2023
1 Lori Mitchell, Director of Community Energy
Jeanne Solé, Deputy Director of Power Resources
Phil Cornish, Senior Power Resources Specialist
Prachi Avasthy, Division Manager of Risk Management, Contracts & Administration
NEW RENEWABLE AND
RELIABILITY PROJECTS
Since 2019, SJCE has contracted
for over 500 MW of new renewable
energy and storage resources
• 62 MW solar + storage in Kern
County; fixed delivery (online)
• 225 MW wind in New Mexico (online)
• 100 MW solar + 10 MW storage in
Fresno (not yet online)
• 102 MW renewable energy in Kern
County; fixed delivery (not yet online)
• 45 MW of long-duration storage in
San Diego County (not yet online)
• 34 MW of geothermal in CA & NV (not
yet online)
MID TERM RELIABILITY REGULATORY REQUIREMENTS
CPUC D.21-06-035 requires SJCE to buy 247 MW of Net Qualifying Capacity (NQC), which is capacity that can be delivered during September peak load:
• 43 MW in 2023: already procured
• 129 MW in 2024: 85 MW signed; todays recommendations and past approvals will allow SJCE to meet requirement
• 32 MW in 2025: 14 MW signed; todays recommendations and past approvals will allow SJCE To meet requirement
• 21.5 MW Long Duration Storage: already procured
• 21.5 MW Firm Clean Resources: already procured
Penalties:
• If SJCE does not procure resources needed ahead of time, PG&E will be required to undertake procurement and the costs will be allocated to SJCE, and penalties may apply
3 SJCE RESOURCE BUILDOUT (CUMULATIVE)
4 0
500
1000
1500
2000
2500
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 MW
2022 Integrated Resource Plan Resource Additions (Cumulative MWs) SJCE Existing Resources Mid-Term Reliability Mandate Resources CPUC Compliant Portfolio Resources Additional City Carbon Neutral Portfolio Resources NEXTERA: YELLOW PINE SOLAR II
Seller: Yellow Pine Solar II, LLC
Developer: NextEra Energy Resources Development, LLC
Technology: Solar plus storage
Products: Renewable energy, resource adequacy, renewable energy credits, battery tolling, and attributes
Location: Clark County, NV (but in CAISO boundary, so not an import)
COD: June 1, 2024 for battery, December 1, 2024 for solar Terms: Solar 20 years; battery through the end of solar term but no more than 25 years
Annual Cost: $15,400,000 (~3.7% Annual Portfolio Power Costs) Total Cost: $332,000,000
Community Investment: $250,000
Homes Powered Annually: ~40,000
5 Source: NextEra website
NEXTERA: YELLOW PINE SOLAR III
Seller: Yellow Pine Solar III, LLC
Developer: NextEra Energy Resources Development, LLC
Technology: Battery storage
Products: Resource adequacy, tolling rights (ability to charge/discharge)
Location: Clark County, NV (but in CAISO boundary, not
an import)
COD: June 1, 2025
Terms: 20 years
Annual Cost: $3,870,000 (~0.9% Annual Portfolio Power Costs) Total Cost: $77,400,000
Community Investment: $50,000
Homes Powered, 4-hour period: ~40,000
6 NEXTERA ENERGY RESOURCES DEVELOPMENT, LLC
• NextEra is the world’s largest generator of
renewable energy from the wind and sun
• Owns and operates over 25 GW of
projects
• NextEra Energy Resources Development,
LLC is not a publicly traded company, but
its indirect corporate parent, NextEra
Energy, Inc. (NYSE: NEE) is a publicly
traded company
7 Source: NextEra website
LONGROAD: SUN POND
Seller: Sun Pond, LLC
Developer: Longroad Development Company, LLC
Technology: Solar plus storage
Products: Renewable energy, resource adequacy, renewable energy credits, battery tolling, and attributes
Location: Maricopa County, AZ
COD: April 1, 2025
Terms: 20 years
Annual Cost: $11,260,000 (~2.7% Annual Portfolio Power Costs) Total Cost: $225,200,000
Community Investment: Contribution expected but still being negotiated Home Powered Annually: ~24,000
8 Source: Longroad website
LONGROAD DEVELOPMENT COMPANY
• Founded in 2016 and focuses primarily
the development and operation of
utility-scale wind, solar and battery
energy storage projects throughout the
United States
• Operating since 2016 with over 1.9 GW
of operating projects
• Longroad is not a publicly traded
company
9 Source: Longroad website
ConEd: ALPAUGH
Seller: Alpaugh BESS, LLC
Developer: Con Edison Clean Energy Businesses, Inc.
Technology: Battery storage
Products: Resource adequacy
Location: Tulare County, CA
COD: June 1, 2024
Terms: 12 years
Annual Cost: $450,000 (0.1% Annual Portfolio Power Costs) Total Cost: $5,400,000
Homes Powered,
4-hour period:
~8,400
10 Source: ConEd website
CON EDISON CLEAN ENERGY BUSINESSES, INC.
• ConEd has developed, acquired or
operated over 4 GW of renewable
energy projects to date since inception
• ConEd is not a publicly traded
company, but its indirect parent,
Consolidated Edison, Inc. is a publicly
traded company (NYSE: ED)
• The core business of parent company
is regulated electric and gas utility
services in New York and adjacent
areas
11 Source: ConEd website
QUESTIONS?
12 Recommendations:
Authorize the Director of the Community
Energy Department or designee to negotiate
and execute:
i. Agreement with Yellow Pine Solar II for
renewable energy plus battery storage
ii. Agreement with Yellow Pine Solar III for
battery storage tolling and RA
iii. Agreement with Sun Pond for renewable
energy plus battery storage
iv. Agreement with Alpaugh BESS for RA
from battery storage
Staff:
Lori Mitchell, Director of Community Energy
Jeanne Solé, Deputy Director of Power Resources
Phil Cornish, Senior Power Resources Specialist
Prachi Avasthy, Division Manager of Risk
Management, Contracts & Administration
Source: NextEra website