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Energy Storage

Connecticut Municipal Electric Energy Cooperative Seeks Proposals for Energy Storage Contracts

The Connecticut Municipal Electric Energy Cooperative recently issued a request for proposals seeking bids for the purchase of stand-alone energy storage contracts for five battery energy storage systems.

CMEEC is looking to enter into long-term off-take tolling or shared savings agreements for energy storage that are owned by third parties and situated within the service areas of its members.

The BESS will primarily shift electrical load in time, and thereby reduce the cost of demand charges for CMEEC members, the RFP said.

“The storage systems may also be used to create value as otherwise allowed by existing or future market rules. CMEEC expects to use up to 365 cycles per year and expects to be able to call on the systems each calendar day,” the RFP said.

Potential sites will be located on property within CMEEC member utility territories, most likely to include at least one site in Groton, Norwich and South Norwalk. CMEEC will provide information regarding sites and their locations.

Each of the five BESS will provide for 4.99 MW, 20 MWh of energy capacity (at least four hours of discharge at 4.99 MW) for each year of a 20-year contract term.

CMEEC is looking for all of the BESS to be commercially operational by June 1, 2026.

CMEEC is seeking pricing for two scenarios: (1) Assumption of 30% investment tax credit for BESS; (2) How additional tax credits (above 30%, if applicable) will impact toll pricing or shared savings percentages.

Bidders are being asked to identify the ITC adders assumed.

Any benefits created by any tax credits, including the Investment Tax Credit, will be retained by Bidder.

The assumed percentage level of Investment Tax Credit support must be explicitly stated. Any ITC level greater than 30% must be substantiated with evidence of its applicability.

“Bidder assumes all risks of achieving the assumed ITC level; failure to qualify for an ITC higher than 30% will not be cause for a price adjustment with CMEEC,” the RFP said.

Proposals are due Dec. 22, 2023 and the RFP is available on CMEEC’s website.

CMEEC is a political subdivision of the State of Connecticut created in 1976.

It is a non-profit municipal joint action electric supply agency that provides the power supply requirements, at wholesale, of six municipal electric utilities with retail electric service territories in Connecticut as well as for other customers who purchase power at wholesale.

Its municipal electric utility members are Bozrah Light & Power, Jewett City Department of Public Utilities, Groton Utilities, Norwich Public Utilities, South Norwalk Electric and Water, and The Third Taxing District of Norwalk Electric Division.

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