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Light Shift and DMACC outline 8 MW battery plan to absorb excess solar, ease transmission costs
Summary
Light Shift Energy and DMACC presented an 8 MW/4‑hour battery storage project to mitigate reverse power flow at Milford’s substation, absorb excess solar generation, provide peak shaving and participate in wholesale markets; the proposal includes a city lease, an interconnection study and a potential $2 million SEU contribution.
Representatives from Light Shift Energy and the Delaware municipal joint action agency presented a proposed battery energy storage system that they say would resolve a reverse‑power condition at a Milford substation caused by high local solar generation.
Light Shift co‑founder Michael Herbert and DMACC representatives described an energy storage system sized for the site adjacent to an existing solar facility. They said the system would absorb—or “soak”—excess solar when local load is insufficient, discharge during higher demand to reduce transmission and capacity charges, and at other times participate in the PJM wholesale market to generate revenue that reduces project cost.
Michael Herbert said the design exercise used historical solar and load data plus forecasted solar additions to identify a configuration the team expects to be cost effective. He described the Milford proposal as “an 8‑megawatt, 4‑hour system” and said the planned footprint would be compact, sited on city‑owned land next to the large solar array. He described a modular containerized layout and said the project development team has completed environmental due diligence and preliminary site work.
Scott Lynch of DMACC framed the project as a way to capture the value of local solar instead of curtailing it. He told council that, from DMACC’s perspective, the project reduces transmission and capacity exposure for the joint action agency and its members; he added that DMACC and Light Shift are negotiating commercial terms and an interconnection study is underway. Lynch said the Sustainable Energy Utility (SEU) board has passed a resolution to contribute funding to reduce capital costs and reported “they will give…help up to $2,000,000” toward the project.
Project participants described a layered operational plan: when solar generation exceeds local load, the battery would “soak” energy that would otherwise be curtailed; during local and DMACC peaks the utility would dispatch the battery for peak‑shaving to lower capacity and transmission charges; and when neither service is needed the battery operator could bid energy and ancillary services into PJM to produce additional revenue. Light Shift said the battery can be stacked across those values to improve project economics.
The team showed a development timeline that includes commercial diligence, interconnection study, lease with the city for the site, site plan approvals and construction. They estimated final commissioning in late 2026 if the project moves forward and equipment lead times and permitting proceed without delay. Herbert said the design already contemplates modest future solar growth on the Milford system.
Council members asked about cost and the effect on ratepayers. Panelists said DMACC modeled the avoided transmission and capacity costs and found the peak‑shaving value alone supports much of the project economics; they pointed to the Danville, Va., project Light Shift built as a precedent, saying combined lifetime benefits there were estimated at about $70 million over a 20‑year contract. Light Shift also said suppliers now provide performance guarantees and extended warranties intended to support a 20‑year operational life for a project of this type. Herbert said the power conversion equipment produces most of the audible noise, on the order of typical conversation levels near the equipment (roughly 60–65 dB at full power) and that mitigation options such as landscaping or acoustic enclosures are available.
No formal action was taken. Panelists said next steps include finalizing commercial contracts, completing the interconnection study (Sargent & Lundy is involved), and returning to the city with a lease and contract documents for council review should the parties agree on commercial terms. DMACC representatives emphasized that as a joint action agency the avoided‑cost benefits flow across all DMACC members and so the wholesale rate gains from reduced transmission and capacity exposure would be shared.
