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US utility Xcel Energy wants to build out a battery storage network across Minnesota to optimise the state’s energy grid.
The pioneering plan called CapacityConnect will see the utility, together with Sparkfund, deploy up to 200MW of distributed battery storage by 2028.
The batteries will be located at various strategic locations, such as local businesses, commercial or industrial sites, or nonprofit organisations. According to Xcel Energy, these customers will receive direct payments for participating in the programme.
Each site will have approximately 1-3MW of storage, with 1MW equating to the size of a shipping container.
The company will integrate the battery storage into its system operations, charging the batteries when energy is inexpensive and dispatching that energy during periods of peak demand.
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Pier LaFarge, CEO of Sparkfund, commented in a statement: “By storing energy when it’s cheap, delivering it when it’s needed most and placing assets where they maximise grid value, Xcel Energy is delivering reliable energy to customers today and building a grid that is ready for tomorrow.”
Xcel Energy plans to scale the deployment to meet increasing demand and drive economic development in the region.
Said Ryan Long, president of Xcel Energy-Minnesota, North Dakota and South Dakota: “We’re focused on supporting economic growth and the needs of our communities by building out and modernising our energy grid.
“We believe distributed energy resources are an important part of that strategy. They will complement our current plans for additional renewable and firm dispatchable generating resources to meet our customers’ needs,” concluded Long.
Xcel Energy and Sparkfund will monitor and review costs, performance and customer experience as the programme progresses.
