Lightshift Energy Plans Second Battery Project in Danville After Success
Lightshift Energy, a prominent developer, owner, and operator of energy storage systems, has officially announced the launch of a second energy storage project in partnership with Danville Utilities. This project, known as Danville II, will enhance grid reliability and provide significant cost savings for the residents of Danville, Virginia. With a capacity of 11 megawatts (MW), Danville II follows the resounding success of Lightshift’s first initiative in the area, Danville I, and underscores the city’s ongoing efforts to modernize its energy infrastructure.
Danville II has already secured a $1.5 million funding award from the Virginia Tobacco Region Revitalization Commission (TRRC) through its Energy Ingenuity Fund. This grant will support the development and deployment of the new battery energy storage system, aiming to strengthen the resilience of the regional power grid while advancing the economic prospects of communities historically reliant on the tobacco industry.
The Danville II project is designed to function primarily as a peak-shaving asset. This means the system will store energy during off-peak hours, when electricity demand and prices are low, and discharge it back to the grid during periods of high demand. This process helps to balance the load on the grid and can significantly reduce the costs associated with energy transmission and capacity charges. Over its 20-year lifespan, Danville II is projected to save local residents approximately $30 million, while also contributing to the city’s broader goals of sustainability and economic development.
Danville’s Director of Utilities, Jason Grey, emphasized the strategic benefits of the project for the city’s ratepayers. “The City of Danville has been exploring various avenues to stabilize electric costs,” Grey said. “The project will not only help reduce transmission and capacity expenses, but also enhance the competitiveness of our electric rates, especially when attracting economic development initiatives. We are thankful for the TRRC’s support and our continued collaboration with Lightshift Energy and their partner, Jerry Silva, on this important infrastructure advancement.”
The decision to move forward with Danville II stems in large part from the overwhelming success of Danville I, which became the largest municipal energy storage system in Virginia when it was commissioned in October 2022. Danville I, with a capacity of 10.5 MW, has consistently delivered reliable, clean energy to the community. It is estimated to provide over $40 million in savings during its operational lifespan, benefiting approximately 9,000 households. Beyond economic advantages, Danville I has also contributed to stabilizing the local electric grid and lowering energy prices across the region.
With the combined impact of Danville I and II, Danville Utilities and Lightshift Energy are creating a robust, cost-effective energy infrastructure that supports the city’s long-term economic ambitions. These projects are also strategically important for ensuring clean, reliable power for data centers and other large energy consumers that are vital to regional economic growth.
Jerry Silva, Director of Regional Energy Development and Innovation at TRRC, highlighted the importance of energy investments for economic transformation. “This initiative reflects how thoughtful energy investments and partnerships can foster growth and innovation in regions undergoing economic transition,” Silva said. “By working with Danville Utilities and Lightshift, we’ve been able to illustrate to our commissioners how these efforts are catalyzing positive change through affordability and reliability.”
The TRRC Energy Ingenuity Fund was established to spur innovation and encourage economic revitalization in areas historically dependent on the tobacco industry. Its objective is to fund cutting-edge energy technologies that enhance access to sustainable and affordable energy. The fund’s support for Danville II exemplifies this mission by helping to diversify the region’s economic base and reduce its vulnerability to energy cost volatility.
Michael Herbert, Co-Founder and Managing Partner of Lightshift Energy, emphasized the strategic value of battery storage for municipal utilities. “Battery storage gives utilities like Danville a powerful tool to manage energy costs, accommodate growing energy loads from new industries such as data centers, and strengthen grid performance,” Herbert noted. “We are honored to expand our partnership with Danville and are excited to contribute to the region’s economic and energy future.”
In recent developments, the Danville City Council has shown strong support for the project. On November 7, the Council granted a special use permit to allow the development of Danville II. Subsequently, on March 16, the Council approved the lease for the project’s site. These actions have paved the way for the final stages of project preparation, and construction is slated to begin in the near future.
Danville II is expected to become operational in the second quarter of 2026. Once online, it will represent a substantial step forward in Danville’s efforts to modernize its energy systems, reduce environmental impact, and maintain affordable energy for its citizens.
By integrating large-scale battery energy storage into its municipal utility operations, Danville is positioning itself as a forward-thinking city capable of adapting to the evolving energy landscape. Through its collaboration with Lightshift Energy and the TRRC, Danville is building an energy infrastructure that not only supports current needs but also lays the foundation for sustainable growth and innovation.
As energy demands continue to rise across the country, particularly from industries like cloud computing and data storage, the need for reliable and cost-effective power is more critical than ever. Danville’s proactive approach through projects like Danville II showcases how municipalities can lead the way in addressing these challenges through public-private partnerships and targeted investments in energy technology.
Danville’s example could serve as a model for other small to mid-sized cities seeking to revamp their energy systems. By combining smart infrastructure planning, state-level funding, and innovative technology providers, cities can not only enhance grid resilience and cut costs but also attract new businesses and improve quality of life for their residents.
With Danville II, Lightshift Energy continues to demonstrate its leadership in the energy storage sector, proving how battery systems can play a pivotal role in the transition to a cleaner, more resilient power grid. The project highlights the broader potential of energy storage to transform regional energy strategies and support the economic revitalization of communities across Virginia and beyond.
