Battery Energy Storage System (BESS)

Pasadena Water and Power (PWP), a department of the City of Pasadena, is soliciting proposals for the design, engineering, permitting, financing, procurement of materials, operation, and maintenance of a 25 Megawatt (MW) utility-scale lithium ion Battery Energy Storage System (BESS) with a minimum storage capability of four (4) hours to be constructed at PWP's Glenarm Power Plant location in Pasadena, California. The objective is to select a private entity to develop and operate the BESS and sell the associated capacity and operational attributes to the City under a minimum 15-year Energy Storage Agreement (ESA). Proposals must include an option for the City to purchase the BESS at the Commercial Operation Date (COD) and at Year Two (2) and Year Five (5) after COD.

The BESS Project is intended to provide environmental, operational, and economic benefits by avoiding emissions associated with fossil-fueled peaking generating resources during system peak periods. The system will provide Resource Adequacy (RA) value in California Independent System Operator (CAISO) markets and will moderate fluctuations in energy costs by storing output during low-load/low-cost periods and releasing energy during high-load/high-cost periods. The project will support Pasadena's Renewable Portfolio Standard (RPS) and greenhouse gas (GHG) reduction targets that exceed state mandates, as identified in PWP's 2021 Integrated Resource Plan (IRP) Update.

Key dates for this solicitation include a Pre-Proposal Meeting scheduled for August 29, 2023 at 5:00 PM, a Questions and Answers deadline of September 28, 2023 at 9:00 PM, and a Proposal submission deadline of October 18, 2023 at 9:00 PM. Detailed technical specifications, functional requirements, site details, insurance recommendations, and legal documentation are provided in the attached materials.

PWP has operated as a municipal utility since the early 20th century, delivering approximately 1.1 million megawatt-hours (MWh) of energy annually to 65,000 retail customers. The utility has assembled a diverse generating portfolio including gas-fired, hydro, coal, nuclear, solar, wind, geothermal, and landfill gas resources. Construction and operation of the BESS Project will create local jobs, support Pasadena's renewable energy goals, and promote alternative energy innovation within the local retail electric service territory.