Peaker plant would replace Encina Power Station
The California Public Utilities Commission (CPUC) has approved a 500-megawatt power purchase agreement between SDG&E and the Carlsbad Energy Center, a key milestone in NRG Energy's efforts to develop a peaker plant needed to ensure reliability in Southern California following the closure of the San Onofre Nuclear Generating Station in 2013 and the impending retirement of the Encina Generating Station.
The Carlsbad Energy Center will be constructed in an area between I-5 and the North County Transit District Railroad. The location is approximately 30 feet below the surrounding grade, reducing the plant's visual profile. The plant will operate only during periods of peak demand and will help integrate a growing supply of intermittent renewable power such as from wind and solar. Water needs will be met through recycled water supplied by the Carlsbad Municipal Water District, conserving scarce drinking water for other uses.
The City of Carlsbad
backed the Carlsbad Energy Center as the best option for ensuring the timely removal of the Encina Power Station and redevelopment of the site for non-industrial uses. Under an agreement with the City and SDG&E reached in early 2014, NRG has committed to demolishing the Encina Power Station by 2020 and funding relocation of the adjacent SDG&E North Coast Service Center.
"We appreciate the CPUC's vote of confidence that the Carlsbad Energy Center is the best approach to have the appropriate, flexible capacity online by 2017 to enable California to reach its greenhouse gas reduction goals through building additional renewable generation while preserving the reliability of the grid," said John Chillemi, president of NRG Energy's West region. "We appreciate the CAISO's (California Independent System Operator) recognition of the project's contribution to the grid and SDG&E's continued support of the project and the benefits it will bring to all of southern California. And we appreciate the City of Carlsbad's focus on the environmental benefits of the project to build a smaller, more efficient plant that complies with the State's once-through-cooling policies, and enables the demolition of Encina and development of the underlying coastline property."
While testifying at the CPUC, Ted Owen, president and CEO of the Carlsbad Chamber of Commerce, urged the CPUC to approve the contract without delay to preserve grid reliability.
"The Carlsbad Chamber has been a strong supporter of this project for many years," Chillemi said. "We are grateful for their tireless advocacy."
Construction of the new plant is expected to commence by early 2016 with completion in conjunction with the retirement of the Encina station by the end of 2017. The project is expected to generate $6-$7 million dollars in local tax revenue annually and create 375 construction jobs
The California Public Utilities Commission (CPUC) has approved a 500-megawatt power purchase agreement between SDG&E and the Carlsbad Energy Center, a key milestone in NRG Energy's efforts to develop a peaker plant needed to ensure reliability in Southern California following the closure of the San Onofre Nuclear Generating Station in 2013 and the impending retirement of the Encina Generating Station.
The Carlsbad Energy Center will be constructed in an area between I-5 and the North County Transit District Railroad. The location is approximately 30 feet below the surrounding grade, reducing the plant's visual profile. The plant will operate only during periods of peak demand and will help integrate a growing supply of intermittent renewable power such as from wind and solar. Water needs will be met through recycled water supplied by the Carlsbad Municipal Water District, conserving scarce drinking water for other uses.
The City of Carlsbad
backed the Carlsbad Energy Center as the best option for ensuring the timely removal of the Encina Power Station and redevelopment of the site for non-industrial uses. Under an agreement with the City and SDG&E reached in early 2014, NRG has committed to demolishing the Encina Power Station by 2020 and funding relocation of the adjacent SDG&E North Coast Service Center.
"We appreciate the CPUC's vote of confidence that the Carlsbad Energy Center is the best approach to have the appropriate, flexible capacity online by 2017 to enable California to reach its greenhouse gas reduction goals through building additional renewable generation while preserving the reliability of the grid," said John Chillemi, president of NRG Energy's West region. "We appreciate the CAISO's (California Independent System Operator) recognition of the project's contribution to the grid and SDG&E's continued support of the project and the benefits it will bring to all of southern California. And we appreciate the City of Carlsbad's focus on the environmental benefits of the project to build a smaller, more efficient plant that complies with the State's once-through-cooling policies, and enables the demolition of Encina and development of the underlying coastline property."
While testifying at the CPUC, Ted Owen, president and CEO of the Carlsbad Chamber of Commerce, urged the CPUC to approve the contract without delay to preserve grid reliability.
"The Carlsbad Chamber has been a strong supporter of this project for many years," Chillemi said. "We are grateful for their tireless advocacy."
Construction of the new plant is expected to commence by early 2016 with completion in conjunction with the retirement of the Encina station by the end of 2017. The project is expected to generate $6-$7 million dollars in local tax revenue annually and create 375 construction jobs