KEY TAKEAWAYS: City Council unanimously approved a $23.6 million battery incentive package. The program targets roughly 800 homes and more than 200 businesses. Forty percent of upfront funding is reserved for low- and moderate-income households. Batteries will provide backup power and help red uce grid demand during peak periods. The New Orleans City Council unanimously approved a $23.6 million incentive package October 1 to install battery backup systems at roughly 800 homes and more than 200 businesses as part of a broader effort to strengthen the city’s electrical grid and provide power during outages. The program, approved through Resolution R-26-421, reserves 40% of its upfront funding for low- and moderate-income households. The incentives will be funded with proceeds from a settlement with Entergy New Orleans, according to the council. District A Councilmember Aimee McCarron, who chairs the council’s Climate Change and Sustainability Committee, authored the resolution. The battery initiative will be paired with previously approved community solar incentives to form what city officials are calling the Neighborhood Power Plan. The system is designed as a virtual power plant, allowing batteries distributed among homes and businesses to be coordinated to provide additional capacity and reduce demand on the electric grid during periods of high usage. “I am so proud to author this transformative legislation, which will provide relief when the lights go out from storms, during heat waves, or when the grid is strained,” McCarron said. “This incentive package, paired with community solar, creates the nation’s most expansive virtual power plant. This is a new solution to these chronic problems, that is for the people and by the people.” During an outage, participating batteries can provide backup electricity directly to homes and businesses while power is restored to the broader grid. The systems also can be coordinated when electricity demand is high to reduce strain on the grid. For properties equipped with solar panels, batteries can store excess electricity generated during the day for use later, potentially reducing the amount of electricity customers purchase from the grid. Council President JP Morrell, who chairs the council’s Utilities Committee, said the investment is intended to provide another layer of protection for residents and businesses during outages while supporting the city’s electrical system. “When the power goes out, families and businesses should not be left waiting for hours or days for relief,” Morrell said. “By putting battery storage directly in our neighborhoods, we are giving people another layer of protection while strengthening our entire electrical grid.” Council Vice President Matthew Willard said the program represents the largest per-capita investment in distributed battery storage in the country. The council did not provide comparative data supporting that assertion in its announcement. The Neighborhood Power Plan was developed through a partnership involving the City Council, Together New Orleans, the Alliance for Affordable Energy and other organizations. Council members said the program is intended to improve energy resilience during storms, heat waves and other periods when New Orleans’ electric grid is strained, while expanding access to backup power for households that might otherwise face financial barriers to installing battery systems. ...read more read less