A lithium-ion battery storage facility in operation in Borrego Springs. Courtesy SDG&E
A lithium-ion battery storage facility in operation in Borrego Springs. Courtesy SDG&E

San Diego Gas & Electric announced Thursday that is has signed a contract for a 20-megawatt battery storage unit that will be the largest of it’s kind in San Diego.

The lithium ion battery project in Spring Valley will be capable of storing enough electricity to power 28,000 homes for up to four hours.

Electric utilities typically use small natural gas-powered generators to help meet power demand during peak periods, but the battery technology doesn’t pollute.

“SDG&E is proud to launch an advanced energy storage facility to harness solar, wind and other sources of energy so that we can supply it to our customers when they need it most,” said Scott Drury. SDG&E’s chief energy supply officer.

The California Public Utilities Commission has set targets for California’s electric utilities to procure large amounts of energy storage by 2020, including 165 MW by SDG&E. The utility said it is ahead of schedule in meeting this goal.

The battery facility will be owned by Hecate Energy Bancroft LLC and supply energy to SDG&E under a 20-year power purchase agreement. The facility is expected to be completed by 2019.

Chris Jennewein is founder and senior editor of Times of San Diego.