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The City Council on Tuesday night voted to authorize the city manager to enter into an agreement for a 10.6 megawatt battery energy storage project as recommended by the Danville Utility Commission.
This project will help offset rising transmission charges, as well as capacity and congestion charges. The batteries would be charged during off-peak energy use times when those costs are lower. The stored power would be discharged during on-peak times, therefore reducing the need for power from outside sources when costs are higher.
In the world of wholesale energy prices, Danville Utilities is billed not only for how much power it buys but when it is generated and when it is delivered. Transmission charges are based on the cost of moving high voltage electricity here from the facility that generates that electricity. Capacity charges are based on the highest amount of electricity that Danville Utilities may need at one time for its customers. Congestion charges are based on when heavy electricity use is causing parts of the power grid to operate near their limits.
Under the agreement authorized last night, Delorean Power would construct, own, and operate the large outdoor lithium-ion battery storage system at Danville Utilities’ warehouse property on Industrial Avenue. The system will include containers about 20 feet long and 10 feet wide and several feet apart.
The City would not be responsible for any of the upfront capital costs or the maintenance of the facility.
In other matters, City Council voted to:
Also, City Council last night reviewed the latest financial reports.