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:
- Adopt a resolution opposing a state Senate bill that would move all elections to November.
- Authorize the city manager to enter into a moral obligation agreement with Movement Bank in the amount of $470,000 for maintenance and repairs at the warehouse at 816 Monument St. The Industrial Development Authority purchased the property in July 2017. The warehouse has more than 77,500 square foot of available leased space and is currently occupied by Southern States and United Electronic Service Co., a division of Belk.
- Authorize an application to the Virginia Department of Rail and Public Transportation for grants to be used for operating and capital costs.
- Appropriate a $8,611 grant from the Virginia Department of Environmental Quality for litter prevention and recycling program activities.
- Appoint of Bryant Hood to the Danville Development Council.
Also, City Council last night reviewed the latest financial reports.
