New energy infrastructure is coming to Michigan. How can communities prepare

The University of Michigan has published a guidebook to help communities navigate the arrival of new battery energy storage systems amid changing energy policies

[Link]The 350 megawatt Crimson Storage project in Riverside County, California. Image credit: Bureau of Land Management California

A confluence of policy and maturing technology will lead to many Michiganders seeing energy storage devices that look like shipping containers show up in their communities.

Utilities and third-party companies are already working to find land where they can deploy these battery energy storage systems, or BESS.

"Developers are knocking on people's doors, looking for willing landowners and asking communities for zoning permits," said Madeleine Krol of the Graham Sustainability Institute at the University of Michigan.

Those communities have been reaching out to Krol and other experts at U-M with questions: What are these systems? What are their benefits? Are they safe?

Now, the Graham Institute has released a guidebook to help community leaders answer those questions and plan for their futures in light of the state's evolving energy goals. Last year, Michigan became the first state in the Midwest to pass a law setting an energy storage target, requiring utilities to add 2,500 megawatts of energy storage before 2030.

"There's going to be a lot of BESS development-we're going to go from zero to 2,500 in just six years," said Krol, a clean energy land use specialist with Graham's Center for EmPowering Communities. "This guide is coming at a time when communities need a lot of information."

Safety tops communities' concerns

BESS come in many sizes-from residential units like the Tesla Powerwall to larger options, the size of shipping containers, that utilities are most interested in. Currently, there is only one utility-scale BESS in the state of Michigan, which is located at Western Michigan University.

BESS use batteries to store electricity when production is outpacing demand. The systems can then share that surplus when it's needed. Although other battery formulations are under development, lithium-ion batteries are by far the most commonly used in BESS today, Krol said.

With lithium-ion batteries powering so many of our everyday electronics, many consumers are also familiar with the fire hazards presented by these batteries when they fail. That hazard is magnified when there can be thousands of pounds of batteries in a single BESS.

"Fire safety is the major concern with BESS," Krol said. "We get a lot of questions about it: How do I make sure my community is safe? Can we require certain things in our zoning so that this project is safe?"

Though the dangers are real, Krol said the technology's safety has improved markedly over the last few years. The guidebook also discusses straightforward steps that communities can take to promote safety, such as training first responders for emergencies and involving firefighters in the design of BESS sites.

[Link]The AES Lawai Solar Project pairs battery energy storage systems with solar photovoltaic energy to increase grid reliability and energy independence on Kauaʻi Island, Hawaii. Image credit: Dennis Schroeder/NREL 57997

Working in communities' BESS interests

With support from the Michigan Department of Environment, Great Lakes, and Energy, or EGLE, Krol and her coworkers had actually been developing the guide with the intent to release it in late 2023.

But that was postponed by additional legislation passed last fall that gave the state more authority on where certain energy infrastructure-including BESS, wind turbines and solar panels- could be built.

"Traditionally, these systems, small and large, would be permitted at a local level," Krol said. "For big projects, over 50 megawatts, there's now a new option to be permitted through the Michigan Public Service Commission at the state level."

The newly published guidebook reflects that reality, while addressing other community questions beyond safety, like where are developers looking to install these systems.

Currently, there are sites proposed for these systems across Michigan with the majority in the southern part of the Lower Peninsula. The sites are along existing transmission infrastructure, including lines and substations.

Some are paired with energy generation, such as wind and solar, but many are proposed as stand-alone systems, which charge from and discharge into the electrical grid. This all helps bolster grid resilience, but the communities hosting the BESS don't necessarily benefit the most from that.

"Communities have been asking me if BESS will improve their grid reliability and the answer is, for a big project, it depends," Krol said. "It won't give that community any more resilience compared to their neighboring community. The benefit is more to the grid on the whole."

Where the host community will see a benefit, however, is economically. Taxes will be paid on BESS equipment, but how much is an ongoing discussion.

The Graham Institute will be mailing hard copies of the guidebook to every planning commission in Michigan this fall and digital copies are now available online.

Guidebook: Planning & Zoning for Battery Energy Storage Systems

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