Consumers Energy Closer to Achieving Clean Energy Goals with Agreement to Purchase Battery Storage

Rhea-AI Summary

Consumers Energy has entered into an agreement with Jupiter Power to add 100 megawatts of battery storage, marking a significant step towards its goal of 550 megawatts of storage capacity by 2040. This initiative is part of Consumers Energy's Clean Energy Plan aimed at eliminating coal by 2025, achieving net-zero carbon emissions, and fulfilling 90% of energy needs through renewable sources like wind and solar. The new facility in Coldwater, developed with Jupiter Power, will complement existing storage systems in Michigan. Jupiter Power specializes in energy storage infrastructure and is developing over 11,000 MW of projects across the U.S.

Positive

• Agreement with Jupiter Power to add 100 megawatts of battery storage.
• Milestone towards achieving 550 megawatts of storage capacity by 2040.
• Part of Consumers Energy's goal to eliminate coal by 2025.
• Aim to achieve net-zero carbon emissions and meet 90% of energy needs through renewable sources.
• New facility in Coldwater to complement existing storage systems in Michigan.

Negative

• None.

Insights

Energy Market Analyst

The agreement between Consumers Energy and Jupiter Power to add 100 megawatts (MW) of battery storage is a strategic move that reinforces the utility's ongoing transition to renewable energy. Battery Energy Storage Systems (BESS) play a pivotal role in stabilizing the energy grid, particularly given the intermittent nature of renewable sources like wind and solar. The move also aligns well with the broader industry trend towards decentralization and increased grid resiliency. Importantly, battery storage can reduce peak load demands and improve energy efficiency, which can translate to lower energy costs for consumers in the long term.

Additionally, the partnership with Jupiter Power, a company with extensive experience in energy storage infrastructure, enhances the credibility and feasibility of Consumers Energy's ambitious goals. With existing operational storage systems and plans to develop their own, Consumers Energy appears well-positioned to meet its target of 550 MW of storage capacity by 2040. This initiative not only promises environmental benefits but also presents a solid business case by potentially lowering operational costs and improving service reliability.

Financial Analyst

From a financial perspective, the partnership with Jupiter Power represents a significant capital investment that has the potential to yield substantial long-term returns. The integration of 100 MW of battery storage is expected to enhance Consumers Energy's asset base, thereby strengthening its balance sheet. Furthermore, as the utility transitions away from coal, this investment will likely reduce operational risks associated with traditional energy sources, such as regulatory pressures and fluctuating fuel prices.

The move aligns with the company's broader goal of achieving net-zero carbon emissions, a factor that could attract environmentally-conscious investors and positively impact the company’s stock price. However, the initial capital expenditure and integration costs should be closely monitored. Any delays or cost overruns could negatively affect short-term financial performance. Nonetheless, the long-term outlook appears promising, especially if energy storage solutions can be effectively integrated with renewable energy sources to optimize grid performance and reduce costs.

JACKSON, Mich., June 24, 2024 /PRNewswire/ -- Consumers Energy announced an agreement today that will add 100 megawatts of battery storage to their clean energy arsenal through a partnership with Jupiter Power. The agreement represents a significant milestone toward the company's goal of reaching 550 megawatts of storage capacity by 2040.

"Battery storage is a critical part of our Clean Energy Plan, improving efficiency and boosting reliability during the transition away from coal to renewable fuel sources such as solar and wind," said David Hicks, Consumers Energy vice president of clean energy development. "We look forward to partnering with Jupiter to meet this need as we continue the journey to achieve our ambitious clean energy goals."

Battery energy storage systems (BESS) store and distribute energy harnessed from renewable sources like wind and solar, allowing for more energy capture and reducing the overall cost of electricity. When used in concert with energy efficiency improvements, demand response and grid modernization work, BESS will accelerate the renewable energy transition without sacrificing affordability or a reliable grid.

"As an early investor in the development of battery energy storage projects in Michigan, Jupiter is thrilled to provide Consumers with cost-competitive energy storage solutions that help Consumers meet its storage and clean energy goals," said Sam Malin, Jupiter's Vice President of Origination. "Jupiter's long-term 100MW power purchase agreement with Consumers represents our investment in dispatchable battery energy storage in Michigan, complimenting the State's wind, solar, and traditional resources to deliver reliable power."

While Consumers Energy has plans to develop 75 megawatts of its own storage by 2027, the facility, to be built in partnership with Jupiter Power in Coldwater, will add to a growing number of storage systems already operational across the state, including ones in Kalamazoo, Cadillac, Grand Rapids and Standish.

Consumers Energy is Michigan's largest energy provider, providing natural gas and/or electricity to 6.8 million of the state's 10 million residents in all 68 Lower Peninsula counties. Consumers Energy's Clean Energy Plan calls for eliminating coal as an energy source by 2025, achieving net-zero carbon emissions and meeting 90 percent of customers' energy needs through clean sources, including wind and solar.

Jupiter is a leading energy storage infrastructure platform with deep trading, analytics, development, finance, operations, and construction capabilities and unparalleled intellectual property in dispatch optimization. The company is developing more than 11,000 MW of projects from California to Maine, and has offices in Austin and Houston, Texas, and Chicago, Illinois. For more information on Jupiter Power LLC, please visit our Twitter, LinkedIn, or Facebook pages or visit www.jupiterpower.io.

For more information about Consumers Energy, go to ConsumersEnergy.com.

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SOURCE Consumers Energy

FAQ

What agreement did Consumers Energy announce on June 24, 2024?

Consumers Energy announced an agreement with Jupiter Power to add 100 megawatts of battery storage.

How much battery storage capacity is Consumers Energy aiming for by 2040?

Consumers Energy aims to reach 550 megawatts of storage capacity by 2040.

What are Consumers Energy's clean energy goals?

Consumers Energy's clean energy goals include eliminating coal by 2025, achieving net-zero carbon emissions, and meeting 90% of energy needs through renewable sources.

Where will the new battery storage facility be built?

The new battery storage facility will be built in Coldwater, Michigan.

What is the significance of the partnership with Jupiter Power?

The partnership with Jupiter Power will provide cost-competitive energy storage solutions, helping Consumers Energy meet its storage and clean energy goals.