The approval enables PG&E to receive an award of matching funds from the US Department of Energy (DOE) under the American Recovery and Reinvestment Act.
On November 24, 2009, the DOE awarded PG&E $24.9m in matching funds to determine the feasibility of a Compressed Air Energy Storage project to be located in Kern County. Overall, California projects were awarded more than $400m through the DOE’s smart grid grant programs.
The CPUC allowed PG&E to match the DOE award and commit up to $24.9m to Phase 1 of a three phase Smart Grid Compressed Air Energy Storage demonstration project, which includes all permitting, transmission interconnection, and plant design leading up to construction.
The company said that the Compressed Air Energy Storage facility, if constructed, will use off-peak energy from renewable sources such as wind energy to inject compressed air into an underground rock formation, and then use the compressed air to power a generator during peak periods when energy is most needed.
The completed Compressed Air Energy Storage project will have a generation capacity of 300MW for up to 10 hours. Information obtained during Phase 1 will be used to determine whether PG&E should proceed to subsequent phases.
The CPUC found that the Compressed Air Energy Storage demonstration project will provide PG&E with understanding of technology, which has the potential to improve lower costs for its consumers and reduce greenhouse gas emissions.
Michael Peevey, president of CPUC, said: ”I would like to applaud my fellow Commissioners for acting quickly to approve funding for this project so that California can take advantage of $25m in matching funds from the Department of Energy. This project is especially beneficial to PG&E customers since it can increase the value of renewable energy.”
