Port of San Diego Microgrid - Resiliency in Terminal Operations
The Port Resiliency in Terminal Operations Microgrid Project integrates four distributed energy resources: solar photovoltaic renewable generation, battery energy storage, energy efficient site lighting improvements, and a microgrid controller.
San Diego Unified Port District (Port of San Diego)
Recipient
San Diego, CA
Recipient Location
39th
Senate District
78th
Assembly District
$3,940,314
Amount Spent
Active
Project Status
Project Update
The Port of San Diego has completed construction of the microgrid system, including the battery energy storage system and solar PV array. The commercial operation date for the microgrid system was received on December 22, 2023 from Luminace. The Port is negotiating the operations and maintenance service agreements for the battery energy storage system and microgrid controller as construction contract close-out items associated with the successful islanding of the microgrid system in 2025 are finalized. The Port prepared the Measurement and Verification Reporting throughout calendar year 2025, accounting for delays associated with islanding the microgrid in 2024.
The Issue
California ports are electrifying their operations to advance their zero emission goals. The shift to all-electric terminals will drive a fourfold (or greater ) increase in terminals’ peak power consumption in the near-term. Additionally, it will increase their susceptibility to electricity price uncertainties and operational disruptions due to losses of grid power. The Port of San Diego Tenth Avenue Marine Terminal (TAMT) provides critical functions such as jet fuel storage for the nearby airport in addition to processing bulk perishable food imports for distribution throughout California and beyond.
Project Innovation
The project will develop a new, permanent, renewable microgrid at the TAMT that can be replicated at other seaport terminals and distribution facilities throughout California, the U.S., and internationally. The project incorporates solar photovoltaic renewable generation (700-kW), a battery energy storage system (2,700-kWh), energy efficiency improvements, and a centralized microgrid controller to allow key elements of the terminal to remain operational when islanded from the electrical grid between 4 to 12 hours, depending on the critical loads that must be supported.
Project Goals
Demonstrate a repeatable model for renewable-based microgrids at seaport terminals, goods movement centers
Operate with renewable energy in island mode
Reduce greenhouse gas (GHG) emissions
Increase penetration of renewable electricity
Reduce electricity costs
Demonstrate a standardized commercial microgrid system
Project Benefits
The microgrid project effectively reduced greenhouse gas emissions by approximately 156 MTCO2e over a twelve-month period (January 2025-December 2025), representing a significant reduction compared to baseline conditions, particularly during high solar generation months. It also achieved its resilience objective by sustaining critical loads for up to 12 hours during islanded operation, confirming its capability to operate independently during grid outages. The system demonstrated meaningful utility bill savings, although early savings were lower than anticipated. Energy efficiency upgrades contributed to reduced electricity consumption, though they fell slightly short of the 20% reduction target due to evolving load patterns and increased electrification efforts at TAMT. Operational testing highlighted both the flexibility of the system and areas for improvement. Additionally, the project showed broader ratepayer and grid benefits, including potential support for demand response and mitigation of California’s “duck curve”.
Affordability
Affordability
The project lowered customer costs by reducing peak demand charges. Additionally, ratepayer costs will be lowered by reducing the need for electric utility infrastructure improvement through consistent management of peak load.
Safety
Safety
The microgrid will increase energy resiliency resulting in a safer staging area that can be used for emergency relief, supplies, and fuel in the event of a disaster that causes a disruption to the electrical grid, as a part of upholding the Port's role as one of 18 Strategic Ports (as designated by the Department of Transportation).
Key Project Members
Renee Yarmy
Program Director, Maritime Sustainable Development
Port of San Diego
Subrecipients
Electric Power Research Institute, Inc.
The Regents of the University of California, on behalf of the San Diego campus
Burns & McDonnell Engineering Company, Inc.
CLEAR BLUE ENERGY CORP.
Chambers Inc DBA Roof Construction
EDF Renewables Distributed Solutions, Inc.
Sillman Wright Architects
IMEG Corp.
Match Partners
The Regents of the University of California, on behalf of the San Diego campus
San Diego Unified Port District (Port of San Diego)
