The City of Traverse City has been awarded a Michigan Public Service Commission (MPSC) Low
Carbon Infrastructure Enhancement & Development Grant in the amount of $1,685,479. City staff
worked with Jacobs and Traverse City Light & Power to draft and submit the application in January 2023 for a solar and battery storage project.
In December 2022, the City Commission approved the preparation of a grant application in the amount up to $2 million to the Michigan Public Service Commission Low Carbon Energy Infrastructure Enhancement and Development Grant for possible funding to purchase and install a solar system with battery storage. The intent is to install solar arrays on the rooftops of the Traverse City Wastewater Treatment Plant buildings. Battery storage, or battery energy storage systems (BESS), are devices that enable energy from renewables, such as solar, to be stored and then released when the power is needed most, and are becoming essential in expediting the replacement of fossil fuels with renewable energy.
The Wastewater Treatment Plant (WWTP) uses approximately 5,048 MWh of electricity annually, based on an analysis of monthly electric bills. The total cost is about $411,525 for a unit cost of $0.082/kWh. The solar PV plant would produce about 510MWh per year of electricity, about 10% of the WWTP annual consumption. This solar project would reduce the WWTP’s electricity costs by approximately $41,000 each year. Over a 25-year lifespan, this project would save the City at least $1.025 million in operations costs. The project is anticipated to reduce annual CO2e Emissions by 300 metric tons per year.
The City Commission’s 2022 adopted Goals and Objectives identified climate as a strategic priority with a goal to address climate within all of our City priorities, goals, policies, and actions. In addition, Traverse City Light & Power is developing a Climate Action Plan.
The total project budget is $1,921,245. The City will need to identify $235,765 of the additional funds needed in the future.
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