Massachusetts public power Danvers Electric has integrated a new battery energy storage system (BESS) for long-term energy cost management using the asset management platform of Caterpillar Inc., Cat® AMP.
“This innovative municipal solution positions the utility to reduce costs and support Danvers’ climate action plan,” Caterpillar said in a news release.
Developed in collaboration with Tangent Energy Solutions, a wholly owned subsidiary of Caterpillar, the 4.99 MW/15 MWh system operated by Cat AMP gives Danvers Electric “a step forward in providing cost-efficient power to the community of more than 30,000 residents and businesses.”
Further, Danvers received a fully integrated, end to end solution with the project executed, operated, and completely financed as a single streamlined package.
“Municipal utilities across the country face mounting pressure from electrification, growing demand, and regulatory requirements. For Danvers Electric, ensuring energy security for the next decade while keeping costs down for customers, was a primary driver behind this project,” Caterpillar said.
“With so many uncertainties around electrification, nobody really knows what the next five to ten years will look like,” said Clint Allen, Utility Director at Danvers Electric. “Preparing our grid for the surge in heat pumps and EV charging stations — while making sure we can supply reliable and affordable energy — is a top concern. This project helps us move forward on all those fronts.”
Using Cat AMP, a distributed energy resource management system (DERMS) that monitors and analyzes electric grid data, "the solution delivers economic benefits by either dispatching the BESS into energy programs or reducing the town’s load when the grid is strained in high energy consumption periods," Caterpillar said.
“This project started as a way to manage our exposure to costly peak energy,” Allen continued. “When the town adopted its climate plan, the battery system folded perfectly into it. It’s a financial benefit to the town, and it helps us hit our carbon-reduction goals at the same time.”
The project required minimal capital expenditure from Danvers and the financing solution provided by Cat Financial ensured that Caterpillar covered all the costs, including equipment, construction and the development of the project, which includes a 15-year agreement to operate the facility.
The Danvers project marks an innovative way of delivering affordable and flexible customer solutions.
“Through Cat AMP software and our expertise in predicting grid peaks, we’re able to ensure that Danvers’ battery discharges at the right times to reduce costs and maximize value,” said Steve Gupman, Director of Energy Services at Caterpillar. “That structure directly benefits the community and demonstrates how energy assets can deliver both economic and environmental advantages.”
The American Public Power Association’s Public Power Energy Tracker is a resource for association members that summarizes public power energy storage projects that are currently online. The tracker is available on APPA's website.
