Ameresco, a major energy efficiency and renewable energy company, announced that the project with PIDC, Philadelphia’s public-private economic development corporation and master developer of the Navy Yard, is underway.

Ameresco broke ground on this innovative project that includes a comprehensive design, engineering, building, and long-term operation and maintenance of the new six megawatt (MW) natural-gas fired peaking plant that will anchor one of the largest private microgrids in the United States located at the Navy Yard in Philadelphia.

“This new on-site generation facility will help support the energy demand for the 1,200-acre campus as businesses continue to locate here and grow, while remaining in line with the Navy Yard’s commitment to smart energy initiatives and sustainability,” said Prema Gupta, Senior Vice President, Navy Yard Planning, Development, and Operations at PIDC. “Ameresco is not only designing and developing a project that addresses the Navy Yard’s energy growth needs, reliability requirements, and cost targets, but one that can also provide back-up and resiliency support as required.”

Once operational, the multi-million-dollar peaking plant is anticipated to run during the Navy Yard’s peak demand periods and during intervals of high-cost energy and capacity from the grid. By generating power during peak times, the project will allow PIDC to reliably meet the projected demand growth needs of the Navy Yard and its tenants. The plant will allow PIDC to participate in the PJM Ancillary Service Market and generate revenues to help offset the cost of the increased capacity.

“Ameresco is extremely proud of our partnership with PIDC and we’re excited to move this critical infrastructure project underway,” said Michael T. Bakas, Senior Vice President, Ameresco. “As a key component of the Navy Yard’s leading-edge microgrid, the plant will be capable of providing certain resiliency services and critical support in the event of extended grid outages in addition to shaving the peak load requirements of the microgrid. This role for Ameresco leverages its depth of experience at developing and operating comprehensive, distributed energy systems integrated into microgrids that serve mission critical facilities for resiliency and cost control purposes.”

The project is expected to be operational in late 2017. Once complete, we anticipate holding a public ribbon-cutting celebration at the Navy Yard site before year-end.