The Greenville Utilities Board of Commissioners approved plans to build a new substation, install a generator and take other measures that will help a solar panel manufacturer launch in Greenville.
Boviet Solar announced in April that it is locating its first North American solar panel manufacturing facility in Indigreen Corporate Park north of the city.
The company plans a $294 million capital investment in the project, which includes purchasing and refurbishing the former DENSO North Carolina facility at 1125 Sugg Parkway and construction of a 500,000-square-foot addition beginning in 2026. It plans to hire more than 900 people.
Boviet will require 10 megawatts of electricity during its first phase and 50 megawatts in its second phase, Chris Padget, GUC assistant general manager/chief administrative officer said during Thursday’s board meeting.
It will have minimal water needs in the first phase but 19 million gallons per month in the second phase. Padgett said staff is currently working with Boviet on its wastewater requirements and permitting.
He said GUC’s incentives to Boviet include waiving about $24,000 in excess facilities charges in the first year of phase one and $240,000 of the charge in the first year of phase two. The utility also is waiving its water/wastewater industrial user permit fee, which is $1,600 and its $200 natural gas connection fee.
GUC will invest $16.3 million to build a 60-megawatt electric substation and add 4-megawatt peaking generators to support the company.
Peaking generators are turbine engines typically powered by natural gas that are activated to produce electricity when demand for power spikes. The power from the generators allows GUC to purchase less electricity from its wholesale supplier during peak times resulting in savings for the utility and its customers.
Padgett said GUC’s wholesale supplier increases its price at peak times from pennies per kilowatt hour to $22.20 per kilowatt hour. He said peak demand charges account for about half of what GUC pays for wholesale power.
GUC is receiving two grants totaling $4 million for the project, Padgett said. One is a $2 million grant from the Golden LEAF Foundation and the other is a $2 million industrial development utility fund grant from the state. The remaining $12.3 million will be funded through long-term financing, he said.
GUC will own and operate both facilities. Boviet will receive credit for the peak usage savings.
Electric Systems Director John Worrell said Boviet wanted to use solar panels to generate power for the peak offset. He said the plan did not work.
Prior to voting on the incentives, board member Ferrell Blount III asked to be excused from voting because of a possible conflict of interest. The board approved his request.
Blount owns property near the building Boviet purchased, the former DENSO manufacturing facility, and a nearby vacant lot, GUC General Manager/CEO Tony Cannon said. The company may have interest in buying Blount’s property.
Measures unanimously approved by the board included:
An agreement that will make the City of Greenville the recipient of the industrial development fund grant, which the city will then hand over to GUC.Accepting the Golden Leaf Foundation grant.Adopting capital project budgets and a reimbursement resolution for Boviet peaking generators totaling $4.3 million and for the Boviet Phase 2 Substation totaling $12 million. The Greenville City Council also has to approve the budgets and reimbursement resolution.
Along with building a peak-shaving generator for Boviet, the board unanimously voted to purchase a 10-megawatt peak-shaving generator plant to be installed at its MacGregor Downs substation.
John Powell, substation engineer, said Duke Energy Progress recently renegotiated its wholesale power agreement with members of the N.C. Eastern Municipal Power Agency, GUC’s wholesale electric provider.
The contract will allow GUC and other utility providers to install peak generator systems at substations, allowing the utility to generate more of its own electricity during Duke’s peak demand hours.
GUC already owns and operates 33 generators at large commercial and industrial sites, such as ECU Health Medical Center. The customers get credit for using the generators and GUC avoids spending about $470,000 a month on wholesale electric purchases.
The board voted to spend $8.8 million to purchase five, 2-megawatt generators from Gregory Poole Power Systems.
The total budget for the project is $13.375 million because switchgear, transformers and cable materials must be purchased.
Local News
Comments / 0