Florida’s Lakeland Electric Pursues Microgrid Pilot Project

by Paul Ciampoli
APPA News Director
July 7, 2023

Florida public power utility Lakeland Electric is partnering with Block Energy in pursuing a pilot microgrid project, which was detailed by Cindy Clemmons, Manager of Legislative and Regulatory Relations at Lakeland Electric, in a presentation on June 30.

Joining Clemmons at the meeting held by the Lakeland, Fla., Utility Committee were several officials from Block Energy and Michael Beckham, Lakeland Electric’s General Manager.

The microgrid pilot project would include battery storage and solar panels.

In providing background on the project, Clemmons noted that she has been conducting research on available federal incentives over the past two years.

“What I quickly learned is that the large grants that we could get our hands on” involved working with a partner. She identified one grant in particular offered by the Department of Energy through its Grid Resilience and Innovation Partnerships (GRIP) Program.

Then, through conversations with energy industry contacts, Clemmons was introduced to Block Energy. She noted that Block Energy is known “for being very focused on the utility and wanting to do business models and projects that benefit the utility. That appealed to us,” she said, noting that the company strives to help utilities stay relevant.

“We formed a consortium with them and went out for the GRIP grant,” Clemmons said. The hope is that Lakeland Electric and Block Energy will hear back on a decision on their grant application in September, she noted.

A big positive related to the project is the fact that “we will get tax credits,” Clemmons noted, through the Inflation Reduction Act. “We will get almost thirty percent back on this project just through tax credits.” The tax credits element “is really going to make this project viable,” she said.

In her presentation, Clemmons detailed a number of other benefits that will flow from the project. She noted, for example, that the microgrid project will have a 100% off-peak design and will be designed so as not to add capacity constraints.

Another positive of the project is that it calls for a utility ownership model. “Everything is controllable by the utility, and we don’t even have to change our rate. It’s a residential rate, so that makes it easier,” Clemmons said.

The utility ownership approach “allows us to be experts. It allows us to dip our toe into what a microgrid is and how it runs.” Another benefit that could flow from utility ownership involves staff development. “There are staff members that we could train, and they become apprentices and learn how to manage a microgrid,” Clemmons said.

At a later point, she said that the projected cost for the project is $2.75 million, which would cover 50 homes participating in the pilot. If the GRIP grant is approved, the project could be expanded to one hundred homes.

“We are covering this in our 2024 budget,” she said, with half coming from production capital and the other half coming from capital for energy delivery.

“I’m still looking for federal funding opportunities,” Clemmons noted, mentioning, in particular, low interest to no interest loans that are forgivable.

“There is no incremental impact to the ratepayers,” she said.  

In terms of the project’s timeline, the first draft of a contract between Lakeland Electric and Block Energy for the two-year microgrid pilot project is under review and “we will bring that to you for approval in the next couple months – we’re thinking either September or October,” she told the committee. If that is approved by the committee, pilot construction would begin in the second quarter of 2024.

Block Energy will install and operate and maintain the microgrid the first two years and then, once the contract expires, Lakeland Electric will take over O&M of the project.

Beckham noted that he and Clemmons were joined by City of Lakeland officials in attending the American Public Power Association’s 2023 National Conference in Seattle, Washington, “and heard quite a bit about microgrids.”

At APPA’s National Conference, Clemmons was awarded the Harold Kramer-John Preston Personal Service Award. This award is given to individuals who have shown outstanding service to APPA.