The Guam Power Authority (GPA) plans to construct two solar-plus-storage projects under a 20-year power purchase agreement, in the context of Phase III of its “Renewable Energy Resource” program.
GPA is now considering ENGIE, the lowest bidder among those qualified in the competitive tender process, for contract award.
Consolidated Commission on Utilities Commissioner Simon Sanchez II told the Patti Arroyo show on NewsTalk K57 that this is a step in the right direction because it will bring in more renewable energy and more batteries for Guam.
He said this is the third phase of GPA’s renewable energy program and that the battery in this project is more robust.
“This will shift lower-cost solar power in the daytime for use in the nighttime,” Sanchez said.
The French energy giant ENGIE is a Paris-based company that specializes in energy storage solutions and microgrids which enable intermittent renewable sources to be transformed into a stable power source.
According to ENGIE, the two “Solar-after-Sunset” systems it proposed can integrate more than 50 MWp of solar PV with approximately 300 MWh of battery energy storage to render 100 percent of the daily solar production available for up to 7 hours after sunset.
ENGIE says its Guam project, if approved, will be the world’s largest “Solar-after-Sunset” project with batteries storing the entire daily solar production to supply green power in the evening to GPA customers.
Battery capacity is 300 MWh of storage, more than twice the size of the largest lithium battery currently operating in the world. An estimated 1.2 million tons of CO2 can be avoided over the systems’ lifetime and a 30 percent reduction in electricity generation cost can be expected against GPA’s current fuel surcharge rate, which is still mainly reliant on fossil fuels.
ENGIE will supply the innovative battery storage design and act as full energy storage solution provider and system integrator, supported by its strategic partner Samsung SDI.
The project is scheduled to be online in July 2022 to deliver over 85 GWh of clean dispatchable energy annually, in line with GPA’s target of sourcing over 25 percent of energy from renewables.
However, the proposed 20-year power purchase agreement still has to be approved by the Consolidated Commission on Utilities and the Public Utilities Commission following a regulatory recourse period. Also, Sanchez said a bid protest has already been filed by competitors, including the one that runs GPA’s renewable power project in Dandan.