REPORT TO COUNCIL
SUBJECT
Title
Action to Authorize the City Manager to Complete Negotiations, Approve and Execute an Energy Storage Agreement and Lease Agreement with Kifer Energy Storage, LLC and Equipment Procurement
Report
COUNCIL PILLAR
Promote Sustainability and Environmental Protection
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
Silicon Valley Power's (SVP) electric load and demand has increased by more than 20% over the last decade and load and demand are expected to continue increasing over the next decade. In order to accommodate the increased demand, major upgrades to SVP's current system are required. While the department is on track to accomplish planned system upgrades within the City as approved by the City Council, there are additional required transmission system upgrades to California Independent System Operator's (CAISO) controlled transmission system outside of the City's service territory which may limit the City's 5-10 year growth trajectory. As SVP has limited control over CAISO's upgrade schedule, SVP staff evaluated other solutions that can be brought online while CAISO completes their system upgrades.
On November 10, 2020, City Council approved and adopted SVP's Energy Storage Procurement Plan to re-evaluate energy storage in compliance with California Assembly Bill 2514 (AB 2514). Consistent with the approved Energy Storage Procurement Plan, SVP researched and analyzed locating energy storage projects at different locations within SVP's service territory and determined that constructing an energy storage project would benefit its customers by meeting future load growth by maximizing the utilization of existing system capacity and having another tool to assist in managing the reliability of SVP's electric distribution system.
On April 20, 2021, SVP presented a Quarterly Strategic Plan Update to the City Council regarding load growth and future SVP capital projects, including the Battery Ene...
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