As SCE continues to increase the demand charge component of TOU rate structures, public agencies in SCE territory are considering the benefits of energy storage using batteries to shave peak demand and reduce monthly utility bills. While battery storage systems integrated with solar PV systems have proven to be a good strategy for mitigating consumption and demand costs, some public agencies are finding that battery storage can yield attractive economics on a stand-alone basis.
Recently, SCE implemented a program in certain parts of West LA County and Orange County that can provide added savings. Known as “local capacity resources” (LCR), this program incentivizes customers to install batteries that can be controlled by SCE to support grid reliability. In other words, the battery storage systems provide both behind-the-meter demand savings, and distribution grid services (ie: demand response) for SCE.
If your facilities are located in one or more of SCE’s LCR regions and have electric service under TOU-8 or TOU-GS-3 with a demand profile greater than 250 kW, your organization may be eligible to participate in this program. However, participation requires agencies to enter into a contract with a qualified vendor who has been selected by SCE to develop these projects.
While some public agencies have entered into sole source contracts with LCR program vendors, others would prefer running an RFP process to determine the most competitive, highest value proposals the market can offer.
TerraVerde, a leading independent renewable energy consulting firm with extensive experience in developing solar PV and battery storage solutions for California public agencies will provide you with a no-cost project feasibility analysis to assist in determining if you possess load profiles that match LCR program requirements. If so, TerraVerde can assist you in developing project design specifications, and running an RFP process to solicit competitive proposals from qualified vendors to maximize benefits for your organization. Finally, TerraVerde will support you in contract negotiations and most importantly, monitor the performance of the storage systems for the 10-year life of the contract to ensure you receive the projected benefits under the contract.
SCE requires that contracts be executed by the end of March 2018 to qualify for this program. We encourage you to contact TerraVerde as soon as possible to take advantage of this one-time demand savings opportunity.
Let us know if you are interested to know more about your systems. Please reach out to us here to set up a call.