La Plata Electric Association (LPEA) has been awarded a $2.085 million grant through the Colorado Department of Local Affairs (DOLA) and the U.S. Department of Energy (DOE) to launch a new grid-edge battery storage project at the cooperative’s Shenandoah substation, just outside Durango city limits. While located at Shenandoah, the project will benefit the western portion of LPEA’s service area, including Durango West, Rafter J, Trappers Crossing, and Hesperus. This innovative project is another major step toward strengthening the local electric grid and energy independence. 

A battery storage system acts like a large rechargeable battery for the electric grid. It stores electricity when supply is high — such as on sunny days — and releases it when demand is high, during outages, or during extreme weather. The Shenandoah battery system will have an initial capacity of 5 megawatts (MW) and store up to 20 megawatt-hours (MWh) of energy — enough to power LPEA’s entire western region consisting of 2,800 homes for several hours during most times of the year. This will help LPEA integrate more local renewable energy, reduce strain on transmission lines, and cut carbon emissions. 

“With this new battery storage project, we’re not just increasing our energy capacity — we’re enhancing the reliability and flexibility of our entire grid,” said Chris Hansen, CEO of LPEA. “As we continue to integrate renewable energy, storage systems will play a crucial role in making our energy future more sustainable and secure.” 

This project is another major milestone in LPEA’s path toward energy independence. Under LPEA’s current wholesale power contract — which the cooperative will exit in April 2026 — battery storage projects like this were extremely limited.  

Funded through DOLA’s Microgrids for Community Resilience (MCR) Program and the federal Bipartisan Infrastructure Law, the Shenandoah project was selected through a highly competitive process, with twice as many dollars requested as were available. Construction will begin following final approval from the DOE. All project funds must be fully expended by April 30, 2031. 

For more on LPEA’s energy transition, visit www.lpea.coop. 

###