DTE Energy to build region’s largest battery energy storage center at site of retired Trenton Channel coal plant
Rhea-AI Summary
DTE Energy will build a 220-megawatt battery energy storage center at the retired Trenton Channel coal plant site, making it the largest in the Great Lakes region when completed in 2026. The project supports Michigan's MI Healthy Climate Plan and DTE's CleanVision Integrated Resource Plan. The center will store electricity during excess generation and distribute it as needed, reducing grid strain and supporting DTE's renewable energy initiatives.
The transformation is helped by $140 million in tax incentives from the 2022 Inflation Reduction Act. The center can power nearly 40,000 homes and aligns with DTE's net zero carbon goals. It will also bring additional tax revenue to the Trenton community for local projects.
Positive
- DTE Energy to build the largest battery storage center in the Great Lakes region.
- The project aligns with Michigan's MI Healthy Climate Plan and DTE's CleanVision Integrated Resource Plan.
- The center can store 220 megawatts, enough to power 40,000 homes.
- $140 million in tax incentives from the Inflation Reduction Act support the project.
- The center will reduce grid strain and support renewable energy initiatives.
- Brings additional tax revenue to the Trenton community for local projects.
Negative
- Capital expense of the project is likely substantial despite tax incentives.
- Completion date set for 2026, indicating a long-term investment with delayed returns.
- Potential risks in technology implementation and integration with existing infrastructure.
News Market Reaction – DTE
On the day this news was published, DTE gained 0.28%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
New project will help State of Michigan meet its MI Healthy Climate Plan goals, contributing toward state’s storage target for clean, renewable power
Detroit, June 10, 2024 (GLOBE NEWSWIRE) -- DTE Energy (NYSE:DTE), Michigan’s largest producer of renewable energy, will also become a leader in battery storage as it converts a portion of its retired Trenton Channel coal power plant site to house a 220-megawatt battery energy storage center. When complete in 2026, the energy storage center is expected to be the largest standalone battery energy storage project in the Great Lakes region.
The new Trenton Channel Energy Center will support DTE’s transformational CleanVision Integrated Resource Plan and Michigan’s new statewide energy storage target, both of which align with DTE’s net zero carbon reduction goals. The facility will store electricity during times of excess generation and distribute the power to customers when they need it. This will reduce strain on the grid, decrease the need to start and stop generation as demand fluctuates, and augment DTE’s growing fleet of renewable generation – all of which benefit DTE customers.
“Today, roughly one-third of all electricity generated by DTE comes from carbon-free resources,” said Jerry Norcia, chairman and chief executive officer, DTE Energy. “Our world-class solar, wind, and nuclear generation facilities are delivering reliable and clean electricity to our customers, and the Trenton Channel Energy Center is a significant milestone in accelerating our clean energy journey.”
The cost of the Trenton Channel site’s transformation is significantly offset by
The center will have the capacity to store 220 megawatts (or 880 megawatt hours) of electricity, enough to power nearly 40,000 homes. It also represents a major step toward DTE’s goal to more than double its total energy storage capacity by 2042 and brings the State of Michigan significantly closer to its own goals for clean energy, as outlined in Gov. Gretchen Whitmer’s MI Healthy Climate plan.
“DTE’s new Trenton Channel Energy Center will help us strengthen our grid and produce more clean power when it’s less costly and store it for later when we need it,” said Gov. Gretchen Whitmer. “DTE got this done with support from the Biden-Harris administration’s Inflation Reduction Act, further shoring up their position as Michigan’s top producer of renewable energy. Thanks to projects like today’s, strong federal leadership, and the Michigan Legislature’s clean energy and jobs package I signed into law last year, our future is bright. We will make more American energy using American workers, lower household energy costs, create tens of thousands of good-paying jobs, and protect our air, land, and lakes. Let’s get it done.”
DTE retired its Trenton Channel coal power plant in 2022 as part of its plan to reach net zero carbon emissions. For nearly 100 years, the power plant served southeast Michigan residents, addressing the growth of Michigan’s post-World War I & II economies.
“The City is thrilled to see DTE utilize its existing site here in Trenton to create an essential new element of its infrastructure,” said Trenton Mayor Steven Rzeppa. “The Trenton plant was a fixture in our community for a century, and it’s encouraging to see DTE’s commitment to the site and the community, employing new technology here in a way that benefits DTE’s more than two million electric customers as well as the City of Trenton and its residents.”
The site’s transformation reinforces DTE’s commitment to bringing more Michigan-made renewable energy online, while continuing to support the Trenton community. This new project will bring additional tax revenue to the Trenton community that can be used to help fund projects including roads, schools, police and fire initiatives and more.
While it is DTE’s largest energy storage initiative, it is one of multiple in development. Collectively, all of DTE’s energy storage projects will help enable the company to deliver clean energy efficiently to 2.3 million customers across Southeast Michigan when they need it.
About DTE Energy
DTE Energy (NYSE:DTE) is a Detroit-based diversified energy company involved in the development and management of energy-related businesses and services nationwide. Its operating units include an electric company serving 2.3 million customers in Southeast Michigan and a natural gas company serving 1.3 million customers across Michigan. The DTE portfolio also includes energy businesses focused on custom energy solutions, renewable energy generation, and energy marketing and trading. DTE has continued to accelerate its carbon reduction goals to meet aggressive targets and is committed to serving with its energy through volunteerism, education and employment initiatives, philanthropy, emission reductions and economic progress. Information about DTE is available at dteenergy.com, empoweringmichigan.com, twitter.com/dte_energy and facebook.com/dteenergy.
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