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Released June 12, 2018 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--California has been edging away from natural gas and other fossil fuels in favor of renewable energy, but infrastructure and generation issues in the state's southern areas could hinder the grid's reliability. Industrial Info is tracking more than $5.8 billion in active, natural gas-fired projects in California's Power Industry, including more than $2 billion worth that already are under construction.
Click on the image at right for a graph detailing the top 10 California counties for natural gas-fired projects, by investment value.
Separate studies recently released by the Southern California Gas Company (SoCalGas) and the Aliso Canyon Technical Assessment Group indicate that issues in Southern California's natural gas infrastructure could affect electricity reliability this summer, and even in the coming winter. The Aliso Canyon group believes the base case for total system deliverability this summer is slightly lower than 3.6 billion cubic feet per day; if daily natural gas demand exceeds that amount--which is common in winter months, but has occurred only once in the past five summers--some natural gas deliveries to electric generators may need to be curtailed, according to the EIA.
The Aliso Canyon Technical Assessment Group includes the California Public Utility Commission, the California Energy Commission, the California Independent System Operator, and the Los Angeles Department of Water and Power.
Southern California accounts for virtually all of the state's active capital projects related to natural gas-fired generation, according to Industrial Info's project database. Among those under construction is AES Corporation's (NYSE:AES) (Arlington, Virginia) $963 million addition to the Alamitos Power Station in Long Beach, a 642-megawatt (MW) natural gas-fired, combined-cycle (NGCC) unit that will comprise a pair of combustion turbines and a steam turbine, all provided by General Electric (NYSE:GE). AES says the new unit will provide backup power to Edison International's (NYSE:EIX) (Rosemead, California) Southern California subsidiary in western Los Angeles, and it will eliminate the use of ocean water for cooling and use 70% less fresh water compared with the existing facility. For more information, see Industrial Info's project report.
AES also is weighing a proposed, $963 million second unit at Alamitos that would generate 642 MW, with a similar setup. The project remains in its analysis phase and would not begin construction until 2022, at the earliest. For more information, see Industrial Info's project report.
Also under construction is NRG Energy Incorporated's (NYSE:NRG) (Princeton, New Jersey) $600 million Carlsbad Energy Center in northern San Diego County, which is set to be completed in late 2019. The simple-cycle peaking facility is expected to generate 600 megawatts (MW) from six General Electric (NYSE:GE) combustion turbines, each with a capacity of 100 MW. It will replace NRG's nearby, 869-MW Encina facility. For more information, see Industrial Info's project report.
Last summer, AES began construction on its $500 million Huntington Beach NGCC project in Orange County, which will replace the existing facility with a pair of combustion turbines and a steam turbine from GE, generating 644 MW. If the project is completed as planned in 2020, AES might later proceed with a proposed, $500 million second unit, comprising a pair of 100-MW GE combustion turbines. For more information, see Industrial Info's project reports on Phase I and the potential Phase II.
Several other natural gas-fired projects have been proposed or are seeking permitting approvals in Southern California, including:
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
Click on the image at right for a graph detailing the top 10 California counties for natural gas-fired projects, by investment value.Separate studies recently released by the Southern California Gas Company (SoCalGas) and the Aliso Canyon Technical Assessment Group indicate that issues in Southern California's natural gas infrastructure could affect electricity reliability this summer, and even in the coming winter. The Aliso Canyon group believes the base case for total system deliverability this summer is slightly lower than 3.6 billion cubic feet per day; if daily natural gas demand exceeds that amount--which is common in winter months, but has occurred only once in the past five summers--some natural gas deliveries to electric generators may need to be curtailed, according to the EIA.
The Aliso Canyon Technical Assessment Group includes the California Public Utility Commission, the California Energy Commission, the California Independent System Operator, and the Los Angeles Department of Water and Power.
Southern California accounts for virtually all of the state's active capital projects related to natural gas-fired generation, according to Industrial Info's project database. Among those under construction is AES Corporation's (NYSE:AES) (Arlington, Virginia) $963 million addition to the Alamitos Power Station in Long Beach, a 642-megawatt (MW) natural gas-fired, combined-cycle (NGCC) unit that will comprise a pair of combustion turbines and a steam turbine, all provided by General Electric (NYSE:GE). AES says the new unit will provide backup power to Edison International's (NYSE:EIX) (Rosemead, California) Southern California subsidiary in western Los Angeles, and it will eliminate the use of ocean water for cooling and use 70% less fresh water compared with the existing facility. For more information, see Industrial Info's project report.
AES also is weighing a proposed, $963 million second unit at Alamitos that would generate 642 MW, with a similar setup. The project remains in its analysis phase and would not begin construction until 2022, at the earliest. For more information, see Industrial Info's project report.
Also under construction is NRG Energy Incorporated's (NYSE:NRG) (Princeton, New Jersey) $600 million Carlsbad Energy Center in northern San Diego County, which is set to be completed in late 2019. The simple-cycle peaking facility is expected to generate 600 megawatts (MW) from six General Electric (NYSE:GE) combustion turbines, each with a capacity of 100 MW. It will replace NRG's nearby, 869-MW Encina facility. For more information, see Industrial Info's project report.
Last summer, AES began construction on its $500 million Huntington Beach NGCC project in Orange County, which will replace the existing facility with a pair of combustion turbines and a steam turbine from GE, generating 644 MW. If the project is completed as planned in 2020, AES might later proceed with a proposed, $500 million second unit, comprising a pair of 100-MW GE combustion turbines. For more information, see Industrial Info's project reports on Phase I and the potential Phase II.
Several other natural gas-fired projects have been proposed or are seeking permitting approvals in Southern California, including:
- Summit Power Group Incorporated's (Seattle, Washington) $680 million NGCC plant in Palmdale; see project report
- Los Angeles Department of Water & Power's $450 million NGCC addition in Long Beach; see project report
- Los Angeles Department of Water & Power's $370 million NGCC additions at Scattergood Generating Station in Playa Del Rey; see project report
- AES' $365 million peaking unit addition at Alamitos Power Station in Long Beach; see project report
- W Power LLC's (Sacramento, California) $91.35 million Energy Reliability Center in Stanton; see project report
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
