A $70 million microgrid project in Gonzales promises reliable, cheap and clean power for ag.

The city of Gonzales decided a few years ago that it would try to attract agricultural companies looking to build new cooling and processing facilities. But the city soon found that its electric infrastructure was inadequate and that Pacific Gas & Electric was too encumbered by statewide issues to invest in upgrading the tiny local system.

PG&E’s lack of reliability came into sharp focus last year when the utility cut off power to Gonzales for nearly two days as part of its wildfire prevention blackouts.

Rather than give up, Gonzales set out to develop a microgrid that would independently power its industrial park at cheaper rates than what PG&E offers. The effort reached a major milestone on Sept. 21 when the Gonzales Electric Authority signed a 30-year contract with Concentric Power, a startup based in Salinas. “We are closer to making the microgrid a reality,” says Gonzales City Manager Rene Mendez.

The proposed project involves the construction of a 14.5-megawatt solar farm with a battery system to be supplemented by natural gas-powered engines. In a future phase, the project could be expanded by tapping methane produced from a nearby landfill to produce electricity, Mendez says.

To start building, the two partners will have to raise $70 million, making this project “the largest public works project undertaken by the city of Gonzales or its special districts or enterprises,” according to a city report.

For Concentric Power and its 22-person staff, success in Gonzales could be a springboard for growth. “This is a first-of-its-kind project,” CEO Brian Curtis says. “We were starting from scratch. This sets the stage for projects like this around the state.”