Lost Hills Solar Project: Powering an Oil and Gas Field with California Sunshine

Abstract

Summary This paper outlines one of the first efforts by a major oil and gas company to build a net-exporting, behind-the-meter solar photovoltaic (PV) plant to lower the operating costs and carbon intensity of a large, mature oil and gas field. The 29 MWAC (35 MWDC) Lost Hills solar plant in Lost Hills, California, USA, commissioned in April 2020, covers approximately 220 acres on land adjacent to the oil field and is designed to provide more than 1.4 TWh of solar energy over 20 years to the field’s oil and gas production and processing facilities. The upgrades to the electrical infrastructure in the field also include new technology to reduce the risk of sulfur hexafluoride emissions, another potent greenhouse gas (GHG). Before the solar project, the Lost Hills field was importing all its electricity from the grid. With the introduction of the Innovative Crude Program as part of California’s Low Carbon Fuel Standard (LCFS) and revisions to the California Public Utilities Commission Net Energy Metering program, Lost Hills was presented with a unique opportunity to reduce its imported electricity expenses and reduce its carbon intensity, while also generating LCFS credits. The solar plant was designed to power the field during the day and export excess power to the grid to help offset nighttime electricity purchases. It operates under a power purchase agreement (PPA) with the solar PV provider and, initially, will meet approximately 80% of the oil field’s energy needs. Future plans include incorporating 20 MWh of lithium-ion batteries, direct current (DC)–coupled with the solar inverters. This energy storage system will increase the amount of solar electricity fed directly into the field and reduce costs by controlling when the site uses stored solar electricity rather than electricity from the grid. The battery system will also increase the number of LCFS credits by 15% over credits generated by solar alone. Together, solar power and energy storage provide a robust renewable energy solution. This project will generate multiple cobenefits for the Lost Hills oil field by lowering the cost of power, reducing GHG emissions, generating state LCFS credits and federal Renewable Energy Certificates, and demonstrating a commitment to energy transition by investing in renewable technology. Conceivably, the Lost Hills solar project can be a model for similar future projects in other oil fields, not only in California, but across the globe.