Latest Jacksonville Electric Authority IRP leaves storage on the back burner for now

Jacksonville Electric Authority does not have any definitive plans for new battery storage in upcoming years, according to its most recent Integrated Resource Plan.

Several scenarios mapped out in the document identified some economic benefit of adding new storage before 2025, but the advantages would be negligible in comparison to the technology’s high capital cost.

That’s a retreat from an IRP stakeholder meeting presentation from February that noted 150 MW of battery capacity by 2025 was the most frequent resource addition across the various scenarios at the time, and that 250 MW by 2030 fell within the Florida utility’s “current outlook.”

VP of Planning, Engineering and Construction Pedro Melendez said that while storage was not a “common solution” across the six scenarios modeled in the final report, the utility expects it will utilize the technology in some way by the end of the decade and will continue to study its potential in the meantime.

“We foresee that between now and 2030, yes, we will have battery (storage),” Melendez said. “‘How much of it? Where is it going to be located?’ is something we don't have enough information (on) today … I'll call it a little bit irresponsible.”

JEA expects capital costs for storage to decline with “advancements in technology and manufacturing and construction methods,” according to the IRP. A public forum on the IRP is planned for May 25.

With storage plans on hold, solar and natural gas, instead, took center stage in the portfolio planning process. That’s in keeping with other utilities’ new IRPs that have sought to balance the intermittency issue of more renewables on the grid with scheduled coal plant retirements and projected load growth.

Identifying resource options that appeared most frequently across different scenarios, the IRP said it is “highly likely” JEA secures around 300 MW of solar by 2026 and 975 MW of solar by 2030. Unit 3 at the natural gas-fired Northside Generating Station will be removed from service by 2029, and most scenarios considered in the IRP suggest the utility should add 571 MW of new natural gas capacity by that year. That could come in the form of a standalone plant or a new unit at an existing facility, Melendez said.

“We are going to see energy demand increase in the future … we're seeing it (grow),” Melendez said. “But the primary driver is as we remove Northside 3, a higher efficiency unit can come in and serve additional load plus maintaining reliability.”

JEA expects to contract for most of the 300 MW targeted in its recent RFP, which closed in late March. That capacity from those projects — which will be built on JEA-owned parcels of land — could cover the utility’s 2026 target.

The shortlist will be announced in May, and Phase II evaluations will continue in June, spokeswoman Simone Garvey-Ewan told NPM. "Awardee announcement is expected by the end of 2Q23," she said.

JEA currently purchases solar from a number of small solar projects totaling 42 MW. And in January, the utility’s Board approved a 5-year contract with The Energy Authority for 150 MW of solar power produced by NextEra subsidiary Florida Power & Light, expected to start in April. Last July, contracts with EDF Renewables for 250 MW of solar power were canceled.

Other RFPs are likely to follow towards the solar targets in the IRP, Melendez said. Land leftover after this current solicitation will be used in future RFPs. And the utility also could contract with developers outside of its service territory through an entity like the Florida Municipal Power Agency, he said. JEA joined the FMPA earlier his month.

JEA has one grid-scale battery at the moment, a "DC-coupled, lithium-ion battery system co-located at the SunPort Solar facility," Garvey said. In addition, some 1,100 residential customers have installed batteries through the company's Battery Incentive Program.

*This story was originally published exclusively for NPM subscribers in May.


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