EPB staff members have been given more leeway to pursue smaller scale energy storage projects, which leaders said will enable the Chattanooga utility to keep costs low for customers and more easily restore power in the event of an outage.
On Friday, the EPB board authorized its staff to work with local businesses to install energy resources of five megawatts or less without coming back to the panel for approval. The agency said this will help streamline projects. Funding would come out of the approximately $30 million EPB budgeted at the beginning of the year for energy storage and generation.
The utility has a goal of growing its energy storage capacity to about 150 megwatts, which is about 10-15% of the area’s peak power demand. EPB currently operates 6 megawatts of storage in its service area, and it’s working to add another 42. That includes converting its former Long Street and East Chattanooga substations into 36 megawatts of energy storage.
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Ryan Keel, EPB’s president of energy and communications, said the utility has worked with real estate agents to find appropriate properties within its system for these projects, but it’s also received interest from developers who want to incorporate energy storage.
“If we can find a willing partner, we’re looking for all kinds of places to build this out over the next few years,” Keel said in an interview.
EPB can draw on those storage systems during times of peak demand, reducing the outlay to purchase power from TVA, Keel said. If a tree falls on a power line or a car crashes into a pole, the equipment also enables EPB to keep more homes supplied with power while crews fix the issue.
Installing generators for local businesses would have similar benefits, Keel said, enabling EPB to reduce wholesale energy costs and supply electricity to commercial customers during outages.
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A recent report by the North American Electric Reliability Corp. found that most power systems on the continent face mounting challenges over the next 10 years as power demands grow. The agency broke regions into high risk, elevated risk and normal risk categories. The region that includes Tennessee faces normal risks, the report said, meaning there is a low likelihood of a shortfall in the supply of electricity.
“The areas all west of here, all north of here are in an elevated risk,” Wade said. “Over half the country is in an elevated risk, according to the most recent study, so anything we put in locally is helpful to our community.”
In a news release, Wade said the energy industry is seeing “unprecedented demand,” and EPB is focused on building its local energy mix to preserve dependable power.
“Localized energy resources are an important tool to strengthen our business economy by protecting against outages and at the same time keep cost low for all customers,” Wade said.
Contact David Floyd at dfloyd@timesfreepress.com or 423-757-6249.