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CL- 2164 Work Session   Item #:   B.    
Work Session Meeting
Meeting Date: 08/08/2019  
Subject:    Battery Storage Proposal at Ringgold Solar Farm
From: Jason Grey

COUNCIL ACTION
Work Session:     08/08/2019
SUMMARY
Utilities staff has been reviewing electric peaking resources that help lower peak demand.  Energy storage charged from solar farms will be both economical and environmentally friendly to the community.  Strata Solar is currently developing the twelve megawatt solar facility at the Ringgold Golf Course.  They have proposed leveraging the 30% Federal Investment Tax Credit to add a battery storage system in conjunction with the solar facility.  The 30% tax credit benefit can be passed along to the City if 75% of the storage system is charged using the solar system.  The energy storage system has to be at least 5% completed by December 31, 2019 in order to take advantage of the full 30% Federal Investment Tax Credit.  After December 2019, the tax credit falls 4% annually until 2022 until the credit is no longer available.  This resource would save the City approximately $100,000/megawatt in transmission and capacity cost avoidance.
BACKGROUND
In October 2018, City Council authorized the purchase power agreements for the twelve megawatt solar farm at the Ringgold Golf Course, and the ten megawatt solar farm on Irish Road in Dry Fork, Virginia.  These solar resources will lower the City's capacity peaks during the summers months.  Utilities staff has evaluated several options to help lower the City's transmission peak during the winter months.  Staff has determined that energy storage coupled to a solar farm is the most economical and environmentally friendly resource to lower peak demand.  This project was presented and approved by the Utility Commission at their June meeting.
RECOMMENDATION
Staff recommends that City Council authorize the City Manager to enter into a capacity agreement for up to twelve megawatts of energy storage to be constructed, owned and operated by Strata Solar at the Ringgold Solar Farm.

Attachments
Resolution
Ringgold energy storage presentation

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