IID moves forward with project
In order to satisfy some of the unique power needs in the Valley, the Imperial Irrigation District Board of Directors voted Tuesday to move forward with a community solar project as well as the expansion of its battery energy storage system.
Last year, Energy Department manager Vicken Kasarjian revealed during a board meeting the intention of implementing a community solar project and on Tuesday the Board voted in favor to begin contract negotiations with the recommended bidder, Regenerate Power.
The proposed solar resource is expected to have a 60 megawatt capacity and half of that will be reserved to serve low-income ratepayers
“This first chunk devoted for the district’s low-income qualified ratepayers will be the first of its kind in the United States,” said General Manager Kevin Kelley. “IID will be leading edge in this respect as it has done in battery storage and recent black start demonstrations.”
Systems Operations Manager for Energy Marc Printy said about 15,000 customers can benefit from the project and noted that no decision has been taken as to how the additional 30 megawatts of energy will be used.
“It gives our low-income population access to solar (energy) without having to install solar panels on the roof and be subject to long term contracts or debt,” said Division 4 Director Erik Ortega. “I’m very happy to be a part of this.”
The approval to begin contract negotiations was approved with a 3-0 vote after Division 2 Director Bruce Kuhn abstained due to the fact that in the past he was worked in the land where the intended project will be located at.
A different proposal was brought to the Board in the past, but it was halted because the land where the project was expected to be located belonged to ZGlobal President and Chief Executive Officer Ziad Alaywan who, according to general counsel Frank Oswalt, could have raised questions regarding a potential conflict of interest.
“As a consequence of that it was concluded by my office that it instituted conflict of interest and my advice was that we did not proceed with the project because this consultation occurred,” Oswalt said.
Once negotiations between IID and Regenerate Power are completed the matter will come back to the Board for approval of the project.
Battery Storage
On Tuesday the Board also approved the continuation of negotiations regarding the potential project to expand the capacity of its battery energy storage facility.
Last fall the IID completed its new 20 megawatt-hour battery energy storage system located within its generation facility in El Centro and under the contract of that project the IID had with the developer Coachella Energy Storage Partners, it allowed for the developer to be in charge of the expansion of the facility should the needs of IID require it to do so.
Once again, the general counsel spotted a potential conflict of interest issue. At the time when the contract with CESP was done, ZGlobal was a consultant for them, now they are outside consultants for IID which prompted Oswalt to encourage the board to seek an alternative.
“The reason for that was that ZGlobal who was a consultant for CESP and is now for IID,” Oswalt said.
“The potential for conflict of interest was obvious and apparent and I recommended to the Board that you seek a request for proposal.”
He added that in order to avoid any issues, IID will negotiate with CESP without ZGlobal staff in the room to keep a clear dividing line.
The need for BESS expansion arose when the commercial agricultural industry asked IID for a way to allow them to be able to shave their own peak loads.
The expected cost of the project is $6.9 million.
The Board’s approval gives staff the green light to enter into contract negotiations with CESP for an agreement governing expansion of IID’s existing battery storage project.