Rancho Seco's energy infrastructure includes a 160-megawatt solar facility, showcasing the Sacramento Municipal Utility District's commitment to clean energy generation. The innovative site combines solar power with sustainable land management through sheep grazing. Photo courtesy of Sacramento Municipal Utility District

SACRAMENTO, CA (MPG) - DESRI and the Sacramento Municipal Utility District (SMUD) announced June 19 that they executed a long-term power purchase agreement for the Dry Creek Energy Storage project.

Dry Creek is a 160 megawatt/640 megawatt-hour battery energy storage system (BESS) located in Sacramento County.

“Our DESRI team is proud to bring this reliable, cost-effective clean energy storage project to the California energy system, an exciting new addition to our partnership with SMUD over many years,” said DESRI Chief Development Officer Hy Martin. “This project will play a critical role in helping SMUD to maintain and enhance grid reliability, optimize performance of their renewable energy assets and contribute to their decarbonization goals.”

SMUD and DESRI have worked on the project jointly over several years. Given the significant transmission infrastructure at the decommissioned Rancho Seco generating station, the battery-energy storage system is optimally located to leverage the existing infrastructure and limit costly upgrades on the system.

The energy storage system will be charged using renewable energy and other clean sources available on SMUD’s grid, supporting the integration of sustainable power and enhancing grid reliability.

"This battery storage project represents another significant milestone in SMUD's Zero Carbon Plan as we work toward carbon-free electricity by 2030," said SMUD Chief Zero Carbon Officer Lora Anguay. "By enhancing our existing renewable infrastructure at Rancho Seco with battery technology, we're building a more flexible and reliable grid while enabling a more efficient integration of renewable energy."

DESRI and its affiliates develop, acquire, own and operate long-term contracted renewable energy assets in the U.S. DESRI’s portfolio of contracted, operating and in-construction renewable energy projects currently includes 70 solar and wind projects representing more than nine gigawatts of aggregate capacity.

As the nation’s sixth-largest, community-owned, not-for-profit electric service provider, SMUD has provided low-cost, reliable electricity to Sacramento County for more than 75 years. In 2023, SMUD’s power supply was, on average, 78 percent carbon free and SMUD has a goal to reach zero carbon in its electricity production by 2030.

For more information on SMUD’s Zero Carbon Plan and its customer programs, visit smud.org.