Title
Resolution to Authorize a Purchase Order with FranklinWH Energy Storage Inc. for Battery Energy Storage System Equipment for the Sustainable Energy Utility ($1,500,000.00)
Memorandum
Enclosed for your review and action is a resolution to authorize a purchase order with FranklinWH Energy Storage Inc. (FranklinWH) for the procurement of battery energy storage system (BESS) equipment in an amount not to exceed $1,500,000.00.
In November 2024, Ann Arbor voters authorized the creation of the Sustainable Energy Utility (SEU). The SEU is preparing to implement its first pilot operations in the Bryant neighborhood with development of a “solar + storage” virtual power plant (VPP). With grant funding from the State of Michigan Department of Labor and Economic Opportunity, the SEU is prepared to enroll its first approximately 100-150 customers, offering an integrated rooftop solar and battery storage solution.
To ensure system standardization, reduce long-term operations and maintenance cost, and simplify installation for the City’s contractors, the SEU elected to procure pilot equipment directly through a competitive Request for Proposals. RFP #26-13 invited proposals for solar modules (panels) and/or BESS. 10 proposals were received and evaluated.
FranklinWH was selected as the preferred vendor to provide the BESS solution, which includes three key hardware components: the aPower S DC-coupled battery with integrated inverter, the aGate energy hub, and a compatible rapid shutdown device. The equipment offering also includes the software which will allow the SEU to monitor and control the batteries for the purposes of asset health management, customer value optimization, and VPP functionality. FranklinWH has also committed to providing training and certification for the City’s installation contractors and on-site equipment delivery that matches the SEU’s construction schedule.
FranklinWH complies with the requirements of the City’s Non-discrimination ordinance.
Budget/Fiscal Impact: This purchase is fully funded by a grant from the Michigan Department of Labor and Economic Opportunity (LEO) awarded to the City for the development of the VPP.
Staff
Prepared by: Shoshannah Lenski, Sustainable Energy Utility
Reviewed by: Valerie Jackson, Assistant City Attorney
Reviewed by: Marti Praschan, Chief Financial Officer
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The City of Ann Arbor has established the Sustainable Energy Utility (SEU) to provide 100% renewable, reliable, and affordable energy to its residents;
Whereas, The SEU is launching its first operations with a Virtual Power Plant (VPP) pilot project anticipated to include an estimated 100-150 residential solar and battery energy storage systems;
Whereas, The City issued RFP #26-13 to solicit proposals for solar PV modules and battery energy storage system (BESS) equipment, and FranklinWH Energy Storage Inc. was identified as the successful bidder for the BESS component;
Whereas, The BESS equipment provided by FranklinWH Energy Storage Inc. includes the aPower S battery, aGate 1.3 energy hub, and compatible rapid shutdown hardware, which meet the SEU’s technical requirements;
Whereas, FranklinWH Energy Storage Inc. has committed to providing necessary battery management software, installer certifications, delivery, and technical support to ensure the successful deployment of the pilot;
Whereas, The purchase of this equipment is fully funded by a grant from the Michigan Department of Labor and Economic Opportunity (LEO);
Whereas, FranklinWH Energy Storage Inc. complies with the requirements of the City’s Non-discrimination ordinance; and
Whereas, The total cost for the equipment and associated software fees shall not exceed $1,500,000.00;
RESOLVED, That City Council approve a purchase order with FranklinWH Energy Storage Inc. for battery energy storage system equipment in an amount not to exceed $1,500,000.00 to be expended without regard to fiscal year;
RESOLVED, That the funds for this purchase be made available from the Michigan Department of Labor and Economic Opportunity (LEO) grant funds; and
RESOLVED, That the City Administrator be authorized to take all necessary actions to implement this Resolution regardless of fiscal year, including the execution of the purchase order and any necessary amendments that do not exceed the total authorized amount.
Sponsored by: Mayor Taylor