Harrisonburg Electric Commission approves 15-year lease for battery storage project with RWE

In a recent Harrisonburg City Council meeting, significant discussions centered around the approval of long-term contracts for a new battery energy storage project aimed at reducing electricity costs for residents. The project, facilitated by the Harrisonburg Electric Commission (HEC) in collaboration with the Virginia Municipal Electric Association (VMEA), involves the construction of battery storage systems in Harrisonburg and Manassas.

The council addressed the necessity of public hearings due to the lease agreements exceeding five years, which classify them as franchises under Virginia law. The proposed lease for a parcel on Bramblewood Road will be for 15 years at a nominal rate of $1 per year, allowing VMEA to sublease the land to RWE Clean Energy Assets Holding for the development and operation of the battery systems. These batteries will store excess electricity generated during off-peak hours, which can then be used during peak demand times, ultimately leading to cost savings for HEC and its customers.

Brian O'Dell, general manager of HEC, emphasized the financial benefits of the project, projecting annual savings of approximately $1.5 million for HEC ratepayers during the first five years. This is expected to help stabilize or potentially lower electricity rates for residents, as wholesale power costs are a significant factor in retail pricing. The council also discussed the technical aspects of the agreements, including interconnection agreements that will allow RWE to connect to HEC's distribution network.

The meeting highlighted the collaborative nature of the project, with all seven municipalities involved in VMEA seeking similar approvals. The council's decision is crucial for moving forward with the project, which aims to enhance energy efficiency and sustainability in Harrisonburg.

As the council prepares to finalize these agreements, the community can anticipate not only potential cost savings but also a step towards greener energy solutions. The battery systems are expected to be operational by the third quarter of 2026, marking a significant advancement in the city's energy management strategy.