Lightshift Energy Partners with Blue Ridge Power Agency for Battery Storage Projects
Lightshift Energy and the Blue Ridge Power Agency (BRPA), a power wholesaler in Virginia, have joined forces to roll out about 25 megawatts (MW) of battery energy storage. This initiative will take place across five locations owned by three of BRPA’s member utilities. The projects, each providing 5 MW, are expected to become operational this year.
These battery systems will harness energy during low-demand times and release it during peak demand periods. This strategy aims to address the increasing energy load in Virginia and the surrounding PJM region. Lightshift anticipates that this battery storage portfolio could save approximately $100 million over its operational lifespan.
Lightshift has highlighted that their distribution-connected storage setups can be installed much faster and with less initial cost compared to transmission-connected systems, which typically require significant investments and lengthy interconnection periods.
Impact on Transmission and Capacity Costs
According to Lightshift, these battery projects can help manage rising transmission and capacity expenses, particularly in areas like PJM, where demand is escalating due to data centers. This collaboration involves multiple battery installations at properties owned by Central Virginia Electric Cooperative, along with one installation each at Craig-Botetourt Electric Cooperative and the municipal electric department for Salem, Virginia. These cooperatives serve mostly rural and suburban customers.
The current Virginia projects are relatively small compared to Lightshift’s usual scope, which targets projects from 5 MW to 30 MW. The smaller size is primarily due to this being the first battery installation for these utilities, as well as Lightshift’s approach to customize projects to meet specific capacity needs.
BRPA requested similar project designs across the board, ensuring all parties involved feel they are receiving fair agreements.
Lightshift’s experience extends beyond Virginia, as they currently manage 14 distribution-scale battery projects in partnership with the Massachusetts Municipal Wholesale Electric Company, another public power wholesaler.
Their projects are designed to combine the advantages of large-scale transmission storage with the quick implementation of behind-the-meter solutions, effectively creating virtual power plants.
In the evolving energy landscape, having multiple smaller storage projects may prove to be more beneficial than developing a larger transmission-connected facility. Additionally, other sectors, such as data centers, are also investing in battery systems for benefits like peak load reduction and enhanced grid reliability.
For example, Lightshift is collaborating with Global Foundries to establish a significant 16 MW/52 MWh battery facility in Vermont. This project aims to lessen the plant’s peak energy demand and bolster the resilience of the New England grid while decreasing dependence on fossil fuels.
Such initiatives could enable utilities to postpone certain transmission upgrades, ultimately lowering overall costs for transmission providers.