Phase 3 Integrated Resource Planning Reliability RFO 2025-2031

San Diego Gas & Electric Company (“SDG&E”) seeks through this Phase 3 Integrated Resource Planning (“IRP”) Reliability Request for Offers (“RFO”) to procure resources to meet electric system reliability needs as required by California Public Utilities Commission ("CPUC") Decision (“D.”)21-06-035, D.23-02-040 and D.24-02-047 (together, the “Decisions”).

The Decisions require SDG&E to solicit offers from owners and operators for the purchase of eligible system-level resource adequacy (“RA”). Through this RFO, SDG&E is seeking eligible system-level resource adequacy to come online by and between June 1, 2025 and June 1, 2028, as described in more detail below; provided that, SDG&E will consider offers for Long-Lead Time (“LLT”) resources that may come online by June 1, 2031 pursuant to the requirements set forth in D.24-02-047.

Additionally, as a result of the D. 23-06-029 Summer Reliability procurement mandate, SDG&E seeks to meet an electric system reliability target of 170-320 MW, which includes an effective planning reserve margin, to come online by June 1, 2025. SDG&E will also consider firm energy imports that can be delivered starting June 1, 2024

To meet the requirements, SDG&E seeks to execute agreements for:

  • Projects that qualify as zero-emitting or generic, non-fossil fueled resources that intend to meet the June 1, 2025, and June 1, 2027, online date and shall have the following characteristics:
    • Be from a standalone RPS generation resource, standalone storage, a generation resource paired with storage (physically or contractually), or a demand response resource;
    • Be available every day from 5 p.m. to 10 p.m. (the beginning of hour ending 1800 through the end of hour ending 2200), Pacific Time, at a minimum; and
    • For Diablo Canyon Power Plant (“DCPP”) replacement capacity to be online by June 1, 2025, be able to deliver at least 5 megawatt-hours of energy during each of these daily periods for every megawatt of incremental capacity claimed, or
    • Otherwise be able to meet all applicable rules to count for RA.
  • Projects that qualify as LLT resources that intend to come online on or before June 1, 2028, are divided equally between the following product categories and shall have the following characteristics:
    • 50% of long-duration storage (able to deliver at maximum capacity for at least eight hours from a single resource); and 
    • 50% of generation capacity that has no on-site emissions or is eligible under the requirements of the renewables portfolio standard program and has at least an 80 percent capacity factor. The resource must not be use limited or weather dependent. No storage projects shall qualify under this provision.
  • Firm energy imports that follow the eligibility and counting rules of the resource adequacy program in place at the time of contract execution and must be associated with a new resource or an increase of capacity from an existing resource with a delivery start date after June 30, 2021. Firm energy imports may count for any requirement of this procurement, including Summer Reliability, generic capacity and LLT resources, depending on the project that the firm energy import is sourced from. SDG&E will also consider firm energy imports that can be delivered starting June 1, 2024.

This website provides an overview of the market solicitation. Respondents are strongly encouraged to download the RFO protocol and related documents pertaining to the resource type of interest, available below, to fully understand all aspects of this RFO.

506.56 KB
PDF
Phase 3 IRP Reliability RFO Protocol
Phase 3 IRP Reliability RFO Protocol

Latest News and Updates

  • 8/22/24 Reopened offer period for 8-hr offers extended to August 30, 2024
  • 8/9/2024 RFO reopened to RFO participants for 8-hr offers
  • Deadline to Register for Power Advocate extended to April 12, 2024
  • 4/2/24 - Q&A Updated
  • SDG&E will also consider firm energy imports that can be delivered starting June 1, 2024
  • 3/22/2024 -Q&A
  • 3/19/2024 - Pre-Bid Conference Presentation
  • 3/6/2024 - RFO Launched

RFO Schedule

The following are the key deadlines that apply to this RFO. SDG&E reserves the right to revise this schedule at any time and at SDG&E's sole discretion. Respondents are responsible for accessing the RFO website for updated schedules and possible amendments to the RFO or the solicitation process.

 

No

Item

Date

1

RFO Issued

March 6, 2024

2

Pre-Offer Webinar

Details:   https://events.teams.microsoft.com/event/e757c0b0-1e0d-437f-992b-a4684f8f54ce@a2e7980c-11ea-4838-8f1a-2f497d8c4072

 

March 19, 2024

10 a.m. - 11:00 a.m. PPT

3

DEADLINE TO SUBMIT QUESTIONS. Question submittal cut-off date. Answers to all questions will be posted on the website no later than March 27, 2024

March 27, 2024

4


DEADLINE TO REGISTER for PowerAdvocate access / to download RFO forms and documents

March 27, 2024

6

CLOSING DATE:
Offers must be uploaded to and received on Power Advocate® no later than 12:00 PM Pacific Prevailing Time 

April 19, 2024

7

SDG&E Begins Offer Evaluation Process

April 22, 2024

8

Shortlist determination

No later than July 19, 2024

9

SHORTLIST NOTIFICATION
SDG&E notifies Shortlisted Respondents

July 22, 2024 - August 9, 2024

10

SHORTLISTED RESPONDENTS ACCEPTANCE/WITHDRAWAL
Letter due from Shortlisted Respondents indicating:
a.    Withdrawal from SDG&E’s solicitation; OR
b.    Acceptance of shortlisted standing and including Shortlist Acceptance Fee 

5 Business Days after Shortlist Notification

4 SDG&E reopens RFO for 8-hour offers August 9, 2024
6 CLOSING DATE:
Offers must be uploaded to and received on Power Advocate® no later than 12:00 PM Pacific Prevailing Time 
August 30, 2024
7 SDG&E Begins Offer Evaluation Process September 2, 2024
8 Shortlist determination No later than September 20, 2024
9 SHORTLIST NOTIFICATION
SDG&E notifies Shortlisted Respondents
September 23, 2024 - October 11, 2024
10 SHORTLISTED RESPONDENTS ACCEPTANCE/WITHDRAWAL
Letter due from Shortlisted Respondents indicating:
a.    Withdrawal from SDG&E’s solicitation; OR
b.    Acceptance of shortlisted standing and including Shortlist Acceptance Fee 
5 Business Days after Shortlist Notification
11 SDG&E begins contract negotiations Q3-Q4 2024
12 Target date to complete contract negotiations Q4 2024 - Q1 2025
13 SDG&E Submits agreements to CPUC for approval Q1 - Q2 2025

* Negotiation time will vary depending on proposal specifics, including proposed contract modifications. CPUC filing requirements may also affect negotiation milestones.

 

Submitting Proposals 

Proposals must be submitted via PowerAdvocate in accordance with the instructions contained in the RFP Protocols. Respondents intending to bid but who do not yet have an existing account with PowerAdvocate® must first register to create a username/password to receive access to the event (event code 217784). Users with an existing PowerAdvocate® account may request access using:  

 https://www.poweradvocate.com/pR.do?okey=217784&pubEvent=true

 

RFO Communication

All questions or other communications regarding this IRP Reliability RFO must be submitted via email to BOTH IRPReliabilityRFO@sdge.com with a CC to SDGE_IE@paconsulting.com (Independent Evaluator).  

Products Solicited & Submittal Documents

In accordance with the CPUC Decisions, SDG&E is issuing its Phase 3 IRP Reliability RFO to solicit offers from owners and operators for the purchase of eligible system-level RA to come online by June 1, 2025, June 1, 2027 and June 1, 2028, and, as described in more detail in the RFO Protocol, SDG&E will accept and consider offers for LLT resources that may come online by June 1, 2031.

The Decisions require, among other things, SDG&E to procure a total of 619.5 megawatts (“MWs”) of net qualifying capacity (“NQC”), as set forth in more detail in the categories set forth, below. 

 

Type of Resource

2023

2024 2025 2026 2027 2028

Total

Firm zero-emitting
resources*

 

        41.4 41.4
Long-duration
storage resources*
          41.4 41.4
Any other type
of non-fossil-fueled
resource
82.7 247.6 62.3 72.0 72.0   536.6
Total 82.7 247.6 62.3 72.0 72.0 - 619.5
Zero-emitting
resources by
no later 2025**
    103.1       103.1

* The LLT resource requirements are equally divided among long-duration storage and firm, zero-emitting generation resources.

** The zero-emitting resources required to replace Diablo Canyon must be procured by 2025, but may occur in any of the years 2023-2025; therefore, the columns do not add to the total.

Participation in this RFO requires the completion of the Offer Form, marked up pro forma agreement and/or confirm templates, credit application, and other documents pertaining to specific tracks listed below. These documents are available via the links below. Failure to provide the listed information may result in an offer being deemed non-conforming and thus may disqualify the offer from further consideration.  

SDG&E is soliciting eligible RA to meet Commission requirements under the following three tracks in this Phase 3 IRP Reliability RFO:

 

Track Product Description Offer Requirements

Track 1 - Projects that qualify
as zero-emitting or generic,
non-fossil fueled resources
that intend to meet online
dates by June 1, 2027.

Energy Storage or Hybrid / co-located Storage plus RPS Generation Resources

  1. Credit Application 
  2. DBE Subcontracting Goal and Reporting (if applicable)
  3. Energy Storage or Hybrid Project Description Form
  4. Energy Storage or Hybrid Offer Form
  5. Applicable Pro Forma agreement (i.e., Energy Storage or Hybrid Power Purchase Agreement) with suggested edits
  6. Energy Storage RA Agreement with suggested edits (for RA-only offers)
 

Stand-alone Renewable Resources

  1. Credit Application 
  2. DBE Subcontracting Goal and Reporting (if applicable)
  3. Renewable Resource Project Description Form
  4. Renewable Resource Offer Form
  5. Renewable Portfolio Standard Power Purchase Pro Forma Agreement with suggested edits

 

Distributed Energy Resource

  1. Credit Application 
  2. DBE Subcontracting Goal and Reporting (if applicable)
  3. Distributed Energy Resource Project Description Form
  4. Distributed Energy Resource Offer Form
  5. Distributed Energy Resource Pro Forma Agreement with suggested edits

 


Demand Response

  1. Credit Application 
  2. DBE Subcontracting Goal and Reporting (if applicable)
  3. Demand Response Project Description Form
  4. Demand Response Resource Offer Form
  5. Demand Response Pro Forma Agreement with suggested edits

Track 2 – Long lead-time resources

Long-Duration Energy Storage

  1. Credit Application 
  2. DBE Subcontracting Goal and Reporting (if applicable)
  3. Energy Storage or Hybrid Project Description Form
  4. Energy Storage or Hybrid Resource Offer Form
  5. Energy Storage Power Purchase Agreement Pro Forma Agreement with suggested edits
  6. Energy Storage RA Agreement with suggested edits (for RA-only offers

 

Firm Zero-Emitting

  1. Credit Application 
  2. DBE Subcontracting Goal and Reporting (if applicable)
  3. Renewable Resource Project Description Form
  4. Renewable Resource Offer Form
  5. Renewable Portfolio Standard Power Purchase Pro Forma Agreement with suggested edits

Track 3 – Firm energy imports

For non-resource-specific RA imports, an “energy product” that “cannot be curtailed for economic reasons” shall self-schedule into the California Independent System Operator markets, consistent with the timeframe established in the governing contract.

  1. Credit Application
  2. DBE Subcontracting Goal and Reporting (if applicable)
  3. Import Energy Offer Form
  4. Transactions will be confirmed using either the Edison Electric Institute master contract or Western Systems Power Pool agreement to execute any agreement(s) that may result from this RFO

Forms

127.29 KB
PDF
Credit Application
Credit Application
46.53 KB
DOCX
DBE Subcontracting Goal and Reporting (if applicable)
DBE Subcontracting Goal and Reporting (if applicable)
108.91 KB
XLSX
Demand Response Offer Form
Demand Response Offer Form
50.55 KB
DOCX
Demand Response Project Description Form
Demand Response Project Description Form
84.94 KB
XLSX
Distributed Energy Resource Offer Form
Distributed Energy Resource Offer Form
51.54 KB
DOCX
Distributed Energy Resource Project Description Form
Distributed Energy Resource Project Description Form
52.70 KB
XLSX
Energy Import Offer Form
Energy Import Offer Form
527.20 KB
XLSX
Energy Storage or Hybrid Offer Form
Energy Storage or Hybrid Offer Form
55.49 KB
DOCX
Energy Storage or Hybrid Resource Project Description Form
Energy Storage or Hybrid Resource Project Description Form
599.48 KB
XLSX
Renewable Resource Offer Form
Renewable Resource Offer Form
52.67 KB
DOCX
Renewable Resource Project Description Form
Renewable Resource Project Description Form

Pro Forma

313.75 KB
DOCX
Demand Response Pro Forma Agreement
Demand Response Pro Forma Agreement
496.16 KB
DOCX
Distributed Energy Resource Pro Forma Agreement
Distributed Energy Resource Pro Forma Agreement
236.00 KB
DOCX
Energy Storage Pro Forma Agreement_Revisions
Energy Storage Pro Forma Agreement_Revisions
221.93 KB
DOCX
Hybrid RPS Generation Plus Storage Pro Forma
Hybrid RPS Generation Plus Storage Pro Forma
143.98 KB
DOCX
Long-term RA-Only Capacity Agreement
Long-term RA-Only Capacity Agreement
217.69 KB
DOCX
Renewable Resource Pro Forma Agreement
Renewable Resource Pro Forma Agreement