Title
Resolution to Approve a Best Source Professional Services Agreement with Lake State Labs LLC for Consulting Services Related to the Creation of a Virtual Power Plant as Part of the Sustainable Energy Utility ($142,200.00)
Memorandum
Staff are seeking approval of a best source Professional Services Agreement (PSA) with Lake State Labs LLC in the amount of $142,200.00 for professional consulting services to advise the Sustainable Energy Utility (SEU) and serve as the project manager on the implementation of the SEU's first Virtual Power Plant (VPP) in the Bryant neighborhood.
In 2024, the Office of Sustainability and Innovations (OSI) was awarded a $5 million grant from the State of Michigan Department of Labor and Economic Opportunity to support the Wheeler Center Solar Park. On February 5, 2024, City Council passed a resolution accepting this grant funding and approving the grant agreement (R-24-045). In November 2024, the State of Michigan Department of Labor and Economic Opportunity approved an amendment to the grant, allowing the funds to be redirected to the Sustainable Energy Utility (SEU) for the development of a pilot Virtual Power Plant (VPP) in the Bryant neighborhood. The amended grant allocates $1 million for staff and general administration costs, $1 million for contractors, and $3 million for the materials and equipment for the VPP. Council approval of the amendment has also been requested. The original grant completion deadline of September 30, 2025 was extended to October 31, 2026.
A Virtual Power Plant (VPP) is a networked system that uses technology to integrate and coordinate multiple distributed energy resources, such as rooftop solar generation, battery storage (in homes and electric vehicles), and smart appliances, so they function together effectively like a single flexible power plant. Leveraging these aggregated small-scale energy resources, a VPP can balance electricity supply and demand efficiently, reducing grid stress and...
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