California Energy Commission Greenlights Major 4.6GWh Solar-Storage Project

California Energy Commission Approves 4.6GWh Solar-Storage Project
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The California Energy Commission (CEC) has given the green light to the Darden Clean Energy Project (DCEP) after extensive deliberation and analysis. This approval, made during a recent business meeting, marks the first project to be evaluated under the CEC’s opt-in certification scheme, receiving unanimous support from all five commissioners.

“This project exemplifies a community-focused approach that advances the state’s energy goals while creating benefits for local workers and residents,” stated CEC Commissioner Noemí Gallardo.

### Project Overview

The DCEP will feature a 1.15GW/4.6GWh battery energy storage system (BESS) paired with a 1.15GW solar photovoltaic (PV) farm, spanning 9,500 acres in Western Fresno County. Initially, the project was also set to include up to 800MW of electrolyzer capacity, positioning it as California’s largest green hydrogen producer. However, these hydrogen plans were dropped towards the end of last year.

The CEC has touted the DCEP’s BESS as the largest in the world. However, with construction expected to take up to three years, it may face competition from other large projects. Recently, AES Corporation completed the first phase of its Bellefield Solar and Storage project, which features a total capacity of 4GWh once fully operational. Additionally, NextEra Energy Resources is in the process of permitting a standalone energy storage project of up to 3GW in Fresno County.

### Controversy Surrounding the Opt-in Scheme

Implemented under California Governor Gavin Newsom’s Assembly Bill (AB) 205, the opt-in certification scheme expanded the CEC’s authority to include BESS projects exceeding 200MWh. While the CEC engages with local communities during the review process, the final authority rests with the state energy regulator. This dynamic has led to criticism from certain groups. For instance, a standalone BESS proposal from Engie has faced significant public opposition, garnering over five hours of negative feedback during a recent information meeting.

Some lawmakers, including Assemblymember Dawn Addis, attempted to pass legislation to limit the CEC’s authority over BESS projects. This push was notably influenced by a significant battery fire at the Moss Landing Energy Storage Facility earlier this year. However, the proposed ‘Battery Accountability and Safety Act’ did not progress past its initial reading and missed the deadline for consideration.

### Thorough Examination of the Project

During the recent CEC meeting, Executive Director Drew Bohan highlighted that staff conducted an exhaustive review of the DCEP over nine months. Following numerous site visits and community engagement meetings, CEC staff determined that all potential impacts could be mitigated to less than significant levels. The project was found to meet all requirements of AB 205, as detailed in a comprehensive analysis exceeding 1,000 pages.

Marissa Mitchell, Head of Environmental Permitting at Intersect Power, expressed her gratitude to the CEC staff for their diligence and commitment, which allowed for a timely decision on the project.

### Fire Mitigation Payments

Additionally, the Fresno County Fire Department (FCFD) has recently implemented “fire mitigation payments” for developers of solar and BESS projects. These payments are intended to fund necessary equipment for combating potential future fires associated with such projects. Given the scale of the DCEP, Intersect Power is set to incur significant costs, estimated at $10.35 million in upfront payments and approximately $120 million in annual payments over the project’s lifetime.

During the CEC meeting, FCFD Assistant Chief Andy Cosentino emphasized the need for the project owner to negotiate payments to fund additional firefighting resources. He highlighted the challenges posed by the area’s extended response times and limited water supply, stressing that the current financial proposals from Intersect Power would not meet the protection needs of the community.

In conclusion, the CEC’s approval of the Darden Clean Energy Project represents a significant step in California’s push towards renewable energy and energy storage solutions, while also addressing the associated challenges and community concerns.