Contract Talks Launched for Potential 500MW San Vicente Energy Storage Facility
The Water Authority's Board of Directors on Dec. 7 authorized negotiations with Tenaska Inc.-Diamond Generating Corp. Joint Venture to assess the potential for developing a major energy storage facility at San Vicente Reservoir near Lakeside.
The project would leverage existing water and energy infrastructure to reduce upward pressure on water rates while expanding the potential for renewable energy use across the region.
The Water Authority and its partner, the City of San Diego, are seeking to draft a Project Development Agreement by spring 2018 for consideration by their governing boards. In November, the agencies identified Tenaska-Diamond as the top choice among five groups of companies vying to develop an energy storage project based on its financial modeling, risk analysis, knowledge of the energy market, and revenue-sharing proposal.