In a significant move for California’s energy landscape, DESRI and the Sacramento Municipal Utility District (SMUD) have inked a long-term power purchase agreement for a 160MW/640MWh battery energy storage project. The Dry Creek Energy Storage project will breathe new life into the site of the decommissioned Rancho Seco power station in Sacramento County, transforming it into a hub for modern energy storage.
The project is poised to play a pivotal role in SMUD’s grid management and decarbonisation efforts. “This facility will play a critical role in helping SMUD to maintain and enhance grid reliability, optimise performance of their renewable energy assets and contribute to their decarbonisation goals,” said Hy Martin, DESRI’s chief development officer. The project aligns with SMUD’s ambitious 2030 zero-carbon power target, leveraging existing transmission infrastructure to sidestep expensive upgrades.
Lora Anguay, SMUD’s chief zero carbon officer, underscored the project’s strategic importance. “This battery storage project represents another significant milestone in SMUD’s Zero Carbon Plan,” Anguay stated. “By enhancing our existing renewable infrastructure at Rancho Seco with battery technology, we’re building a more flexible and reliable grid while enabling a more efficient integration of renewable energy.”
The project is not just a win for SMUD but also a testament to DESRI’s growing clean power portfolio, which now comprises over 9GW of solar and wind capacity in operation, contracted, or under construction across the US. This deal could set a precedent for other utilities looking to repurpose decommissioned power plant sites for energy storage, potentially accelerating the transition to a more flexible and renewable-centric grid.
The agreement also raises intriguing questions about the future of energy storage. As more utilities set ambitious decarbonisation targets, how will they balance the need for new infrastructure with the repurposing of existing sites? Moreover, as battery technology continues to evolve, how will these projects adapt to incorporate advancements and maximise their benefits?
The Dry Creek Energy Storage project is more than just a power purchase agreement; it’s a bold step towards a more sustainable and reliable energy future. It challenges traditional notions of power generation and storage, sparking a debate about the role of decommissioned sites in the energy transition. As the project takes shape, it will be fascinating to see how it influences the broader energy storage landscape and inspires similar initiatives across the country.