San Diego Gas & Electric (SDG&E) announced the approval by the California Public Utilities Commission (CPUC) for the major expansion of its Westside Canal Battery Energy Storage facility in California’s Imperial Valley. The expansion will add 100 MW of capacity, bringing the total energy storage to 231 MW. It will come into service by June 2025.

Raising Energy Resiliency for California Communities

Caroline Winn, CEO of SDG&E, said, “By increasing storage capacity, we can allow more clean energy to be efficiently stored and dispatched when it’s needed most, helping to create a more resilient and sustainable grid for our communities”

This facility is part of SDG&E’s plan to grow its battery storage portfolio to 480 MW and 1.9 GWh by 2025.

Cost Savings and Energy Affordability

One of the most important advantages of the Westside Canal expansion project is that it can assist in keeping energy prices lower for consumers. For the second year running, SDG&E lowered household bills, partly due to federal tax credits on infrastructure expenditures. The company paid back $200 million worth of federal tax credits to customers after it finished several battery storage projects, including Westside Canal.

The growth will also introduce four critical services for enhancing grid stability and efficiency. Services like generation capacity, energy balancing, and congestion management will ensure a more stable and efficient power supply.

Also read: Clearway Energy secures funding and begins construction on California solar and battery storage projects

Key Contributions to Grid Stability and Efficiency

The new Westside Canal facility, expanded in size, will provide peak power backup, ensuring adequate power when it is most needed. It will also offer ancillary services like frequency regulation and voltage control to support grid stability. The facility will also hold excess energy during low-demand hours and release it when demand is high, hence maximizing energy consumption and stabilizing power prices.

The facility will also make power flow more efficient and reduce congestion by taking up energy close to generation points and discharging it when congestion in transmission lines is reduced, thereby leading to a more efficient and reliable network.

Safety commitment by SDG&E is an utmost concern for the expansion project. The facility will have UL/NFPA compliance standards along with leading-edge safety features such as emergency stops, lockable disconnects, and lightning protection. SDG&E is also collaborating closely with local first responders and following established safety practices in energy storage.

The International Finance Corporation (IFC), a part of the World Bank Group has signed a Memorandum of Understanding with Cagamas Berhad, the National Mortgage Corporation of Malaysia, to promote increased green building finance in Malaysia and support the nation’s sustainable development objectives.

Supporting Climate-Smart Investments

This partnership assists financial institutions in promoting green investments in construction and housing by equipping them with the ability to craft sustainable finance solutions. These choices, green bonds, credit lines, and green cooling, assist Malaysia in creating a climate-friendly future while green housing becomes more feasible and available to many. The program also aims to assist financial institutions in developing a pipeline of attractive green projects as well as managing environmental, social, and climate-related risks efficiently.

Facilitating Financial Inclusion and Knowledge Exchange

An integral partnership element is building dialogue between the public and banking sectors to address impediments to sustainable housing growth. The project will also concentrate on promoting affordable and accessible green housing, especially for women and lower income groups. By developing a broader market for green mortgage products, the partnership is looking to bridge gaps in housing finance in Malaysia.

Also read: IFC Invests $100 Million in QNB Leasing to Support Sustainable Energy and Blue Finance

Driving Malaysia’s Net-Zero Ambitions

Green building finance scaling is a key step toward meeting Malaysia’s ambition of net-zero emissions by 2050. This collaboration provides thrilling prospects, introducing new financing solutions that promote sustainability while supporting Malaysia’s economy and future resilience.

Judith Green, Country Manager for the World Bank Group in Malaysia, said, “We are delighted to collaborate with Cagamas on this engagement, which will play a critical role in supporting not only the increasing need for green housing in Malaysia, but also the country’s inclusivity agenda”

He added,”Together, we aim to improve access to housing and reduce emissions, encouraging climate-smart investment in the building sector, and strengthen the financial sector’s capacity to support Malaysia in achieving its climate commitments under the Paris Agreement”

This program is IFC’s first in Malaysia’s green building market since it set up a presence in the country in 2023.