D. E. Shaw Renewable Investments (DESRI) has signed a long-term power purchase agreement with the Sacramento Municipal Utility District (SMUD) for a 160-megawatt/640-megawatt-hour battery energy storage system to be developed at the former Rancho Seco power station site in Sacramento County.
The Dry Creek Energy Storage project is expected to support SMUD’s goal of achieving a zero-carbon electricity supply by 2030. The facility will use existing transmission infrastructure at the decommissioned nuclear plant, helping to avoid additional grid upgrade costs.
“This battery storage project represents another significant milestone in SMUD’s Zero Carbon Plan,” said Lora Anguay, SMUD’s chief zero carbon officer. “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 chief development officer Hy Martin said the project will “play a critical role in helping SMUD to maintain and enhance grid reliability, optimise performance of their renewable energy assets and contribute to their decarbonisation goals.”
The project aligns with a broader shift toward utility-scale energy storage in California, where batteries are playing an increasingly central role in balancing variable renewable generation.
DESRI’s U.S. clean energy portfolio includes more than 9 gigawatts of solar and wind capacity that is either operational, contracted, or under construction.
