Title
A Discussion of a Potential Battery Energy Storage Solution (BESS) Project for the City's Municipal Electric System.
Brief Description: Staff will present information regarding a potential BESS exclusively for the City's municipal electric system. The system would be constructed, owned, and operated by a private company and be constructed on the property north of the HPP Eastside Substation on Stow Rd.
Body
Legislative History
23-0069 Discussion on a Battery Storage Solution
Purpose & Explanation
Staff has engaged in extensive discussions with multiple battery storage solution providers to gather the necessary information for properly sizing and defining requirements for a proposed 10MW/20MWh Battery Energy Storage System (BESS). The system is planned for construction on City owned property located directly north of, and adjacent to, the Eastside Substation on Stow Road. In addition, staff has reviewed request for proposal (RFP) documents developed by other AMP communities to gain additional insight into the process. With this information in hand, staff collaborated with our consultant, Courtney & Associates, to develop an RFP tailored specifically to Hudson's needs.
This type of system comprises multiple exterior battery bank components and structures, which are primarily charged during nighttime hours when electricity rates are significantly lower. The stored energy is then dispatched to Hudson's electrical grid during peak demand periods, helping to reduce the City's peak load as well as transmission and capacity charges. Preliminary estimates project cost savings of approximately $14 million over a 20-year period.
To fund both operational and capital expenditures of this project, the City and the developer would enter into a Shared Savings Agreement (SSA). Under a typical SSA structure, the municipality receives roughly 35% of the total savings, which for Hudson would translate to an estimated annual savings of $260,000.
Battery housing structures c...
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