Late last week, General Electric told a California regulator that it would close down a 10-year-old Southern California natural gas plant because it’s no longer economically competitive in California’s energy market.
The news, first reported by Reuters, is surprising because natural gas plants tend to have 30-year lifespans on average, and natural gas is currently the cheapest fossil fuel on the market today. But the two 376 megawatt (MW) turbines at the Inland Empire Energy Center (IEEC) outside of Riverside, California, are not built to play well with the increasing amount of renewable energy on California’s grid. On top of that, renewables’ low marginal cost and ubiquity throughout the state mean that during certain times of day, they’re often the cheapest energy option.
Natural gas needs quick-start options
GE told the California Energy Commission on Thursday that the natural gas plant is “not designed for the needs of the evolving California market, which requires fast-start capabilities to satisfy peak demand periods.”