Hanover discusses battery storage proposal

OBSERVER Photos by Braden Carmen Pictured is the design of a battery energy storage system proposed in the Town of Hanover.
HANOVER — A renewable energy company is eyeing a potential Battery Energy Storage System (BESS) project in the Town of Hanover.
Discussion surrounding the project began in a workshop prior to the latest meeting of the Town Board, then continued later in the meeting. In all, more than an hour was spent discussing the potential project, but it was Hanover Supervisor Lou Pelletter’s blunt inquiry that resonated throughout the discussion.
“What’s in it for the Town of Hanover?”
The proposed 250 megawatt lithium-ion battery storage project would be owned by Northland Power, Inc., the same owner as the Ball Hill Wind Turbine project. The interconnection would be located on Stebbins Road through National Grid. Northland Power would manage the construction of the facility and employees from the Ball Hill Wind Turbine facility would also be involved in operations. The earliest date for operation would likely be in 2028, but representatives from Northland Power did not commit to a firm timeline.
Pelletter voted against the installation of the Ball Hill turbines. Among his many questions for the Northland Power representatives at the recent meeting concerns were the financial benefits of such a project to the Town of Hanover, the sustainability of the project even if state or federal funding is not available, and where the energy would actually be going once it enters the grid. Pelletter was skeptical of the Town’s potential benefit from the project, as previous green energy projects spoke to potential decreases to local energy bills that Pelletter has yet to see.
If approved, the project would be located in the host communities of the Town of Hanover and the Silver Creek Central School District. Anticipated revenue from the New York State Energy Research and Development Authority (NYSERDA) would likely span over 15 years, while payments through Host Community Agreements (HCA) and a Payment in Lieu of Taxes (PILOT) would span across the useful life of the project, anticipated at 25 years. One hypothetical presented to the Board by Northland Power representatives suggested a $250,000 annual payment to the Town through the HCA and $250,000 annually in the PILOT to be divided between the Town, Silver Creek Schools, and Chautauqua County.
Referring to an agreement between the Town and a solar energy company, Pelletter stated the financial benefit to the Town was far less substantial than he had hoped. He believes the benefit is greater for Silver Creek Schools and Chautauqua County regarding renewable energy project agreements.
“The School and the County gets it. If they think it’s such a good idea, maybe they should run the show and not me,” Pelletter said. “When it comes to the PILOT, I’m not interested in the School getting anything; I’m not interested in the County getting anything; and I’m not interested in them saying we’re going to cut out all the sales tax.”
On top of the financial agreements, the project would likely include an equipment contribution to local fire departments, as well as the creation of up to approximately 130 temporary jobs during construction of the facility and 2-3 long-term jobs once the facility is operational. Payments to landowners of the proposed project are estimated at between $2.2 million to $2.5 million over the life of the project.
The project was also presented to local fire department representatives, who requested a fire protection water tank be installed at the facility if it is approved. A storm water drain would also be located on-site.
As Supervisor, Pelletter wants to handle the proposed project in the way that best suits the community, rather than just his own opinion on the matter. He favored involving the Planning Board and the community overall before making any decision.
The Town had originally planned to set a public hearing date to discuss implementation of a moratorium on battery storage facilities in the Town to allow for time to establish parameters of such facilities. Upon discussion, Northland Power representatives stated if a moratorium were to be enacted, they would likely move on to consider other communities for such a project due to the financial commitment timeline of the project. A major commitment would be required from the project in August.
A representative from Northland Power said, “A moratorium makes our business very tough. If that’s the direction you want to go, great, but that probably means we’re going to focus on other projects.”
In response, the Town Board set a date for a public hearing to be held at the beginning of its regular meeting on Monday, Feb. 24 at 7:05 p.m., at the Town Hall. Rather than the hearing being held to discuss a moratorium on battery storage facility laws in the Town, the hearing will be to gauge public input regarding the presence of such systems in the Town at all.
Pelletter said, “If we don’t do it, we’re not going to do it at all. It wouldn’t be a moratorium, we just won’t do it at all.”