Lightshift Energy has announced plans to construct a new 11-MW/44-MWh battery storage project for Danville Utilities, a municipal utility based in Danville, Virginia. The project, designed to reduce peak demand, is expected to help the utility save approximately $30 million in transmission and capacity charges over the next 20 years.

The storage system will be used to mitigate rising demand-related costs, which have been increasing by 10-15% annually. With 40% of Danville Utilities' power supply costs linked to demand, the new project aims to reduce these costs while ensuring competitive electric rates for the city. Jason Grey, Danville's Director of Utilities, emphasized that the new system will help lower transmission and capacity costs, benefiting both the utility and the local community.

The project follows the successful deployment of Lightshift Energy's previous 10.6-MW storage project in Danville, which has helped reduce transmission, capacity, and congestion charges since 2022. The new system will also allow for ancillary services to be sold into the PJM Interconnection market and take advantage of wholesale energy price arbitrage.

In February, the project received a $1.5 million grant from the Virginia Tobacco Region Revitalization Commission's Energy Ingenuity Fund, further supporting the initiative.

Source: utilitydive.com