Advanced Microgrid Solutions (AMS) has announced a private-public partnership with the Irvine Ranch Water District for the installation of 7 MW (34 MWh) of Tesla batteries.
The batteries will be installed at 11 of the water district’s most energy intensive facilities, including three water treatment and recycling plants, a deep aquifer treatment system, a groundwater desalter facility and six high-energy pumping stations.
The project is part of Southern California Edison’s grid modernization program designed to partially offset the closure of the San Onofre Nuclear Generating Station by enhancing the water district’s ability to respond to demand reduction requests.
The transportation and treatment of water in California accounts for nearly 20% of the total electricity and 30% of non-power plant related natural gas consumed in California, according to the California Energy Commission.
That makes water systems a prime application for renewable energy resources and demand reduction measures.
In February SunEdison signed a solar power purchase agreement with Stockton East Water District in Northern California for a 2.2-MW solar farm on the water district's property. The district said it expects to save more than $9.5 million on energy costs over the next 20 years and 20 million gallons of water annually.
The Irvine Ranch Water District expects cost savings of more than $500,000 per year for its new project with AMS. The project will use around 370 Tesla Powerpacks and will be supported by a 10-year power-purchase agreement with Southern California Edison (SCE). Under the agreement, AMS will design, finance, install and operate energy storage systems at the water district facilities and manage requests from SCE for load reduction.
"Our utility-scale contracts make possible the realization of guaranteed savings and accomplishment for organizations, particularly public water agencies such as IRWD, with serious energy and emissions reduction goals," Susan Kennedy, CEO of AMS, said in a statement.
Just last month, Tesla and SCE announced a deal for a battery project totaling 80 MWh as part of the utility's strategy to offset potential fuel shortages from the Aliso Canyon methane leak. The project is set to be the largest lithium ion energy storage facility in operation after it becomes operation in January 2017.