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Council approves pilot microgrids for Fire Stations 2 and 3; staff to evaluate smaller battery options for cost savings
Summary
After staff analysis, the council authorized moving forward with solar PV purchases and leased battery microgrids for Fire Stations 2 and 3 (24‑hour resiliency) and directed staff to return with options to reduce battery size at other sites to improve financial returns.
The Laguna Beach City Council directed staff to begin microgrid installations at two fire stations and to pursue a procurement approach that purchases photovoltaic (PV) panels while leasing battery storage. Jeremy Fremont, assistant city manager, summarized a multi‑site analysis and recommended a hybrid approach that buys PV arrays and leases batteries because battery technology is evolving rapidly and the lease model reduces municipal capital and disposal burdens.
The council approved moving forward with the purchase of PV and leases for 24‑hour battery capacity at Fire Station 2 and Fire Station 3 as phase one. Staff and consultants explained why most of the modeled scenarios with larger resiliency reservoirs (24, 48, 72 hours) did not recover capital costs within a 25‑year analysis period under current tariffs and battery prices. Consultants noted that tariff structure changes and higher equipment and labor costs tightened anticipated financial returns. Council members emphasized resiliency for critical facilities — especially fire stations and the emergency operations function — and favored beginning with the two fire stations.
Council also asked staff to return with refined financial models that evaluate smaller battery durations (for example, 6–8 hours) for other municipal sites — corporate yard, city hall and the animal shelter — to identify scenarios that produce net operational savings or better cost recovery. Staff noted federal investment tax credits apply to PV purchases (and could be maximized by a targeted implementation schedule) and that leasing batteries preserves flexibility to upgrade storage technology later.
Why this matters
The microgrid pilot advances the city’s resilience planning by ensuring emergency services can operate during extended outages and reduces dependence on aging diesel generators. The council balanced resilience priorities (full operations at fire stations) against budgetary realities and asked for additional analysis to find cost‑effective solutions for non‑critical sites.
Next steps
Staff will prepare a service agreement to start phase‑one procurement for Fire Stations 2 and 3 and will model smaller battery options for additional sites, then return to council with contracts and implementation timelines.
