REPORT TO COUNCIL
SUBJECT
Title
Action to Delegate Authority to the City Manager to Complete Negotiations and Execute a Third Phase Agreement with the Northern California Power Agency (NCPA) for the Purchase of Energy Storage Products from Trolley Pass Project LLC for a Total Contract Amount of $983,000,000 Over 20 Years
Report
COUNCIL PILLAR
Deliver and Enhance High-Quality Efficient Services and Infrastructure
Promote Sustainability and Environmental Protection
BACKGROUND
The City of Santa Clara's Electric Department, Silicon Valley Power (SVP), purchases energy to supply residents and businesses within the City of Santa Clara (City). With the passage of Senate Bill 100, SVP must meet the State of California's Renewable Portfolio Standards (RPS) where SVP must procure a specified percentage of its retail sales from renewable energy resources by a particular year. Most of the renewable energy resources on the market are solar photovoltaic (Solar PV) generation. As the City's datacenter load grows, SVP will need energy storage to store solar power and to use the stored power during hours when solar may not be available. Energy storage resources can also be used to meet SVP's resource adequacy needs.
SVP generally procures energy storage products (like resource adequacy) by entering into an Energy Storage Service Agreement (ESSA) with project developers through their direct offerings or through a request for proposal (RFP) process. SVP may also participate in energy storage project opportunities through the Northern California Power Agency (NCPA). NCPA is a not-for-profit Joint Powers Agency whose membership includes municipalities, a rural electric cooperative, and other public agencies including the City of Santa Clara. The mission of NCPA is to provide its members with cost effective wholesale power and energy-related services.
Each potential project may have unique characteristics that impact the value of the resource to SVP. Staff evaluates potent...
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