PRECorp to test energy storage, solar

BUFFALO (WNE) — Powder River Energy Corp. plans to experiment with energy storage technology and solar power generation, thanks to a $23.5 million federal loan.

Energy storage systems capture energy at one time for later use. The ability to generate solar power is intermittent, dependent on available daylight and weather conditions.

The rural electric co-op will build its energy storage and solar project in Moorcroft, where the company owns land and a 50-year-old substation that will be replaced. As such, the system will be a backup power source for Moorcroft, said Joe Roth, the corporation’s vice president of member services.

“This allows us to get familiar with energy storage,” he said in an interview. “We think that somewhere in that 35 to 40 megawatts is what PRECorp would need systemwide to be able to take advantage of that demand management, to really get that benefit.”

This initial project is estimated to provide five megawatts of energy storage, which Roth said the corporation estimates could reduce its power bill by roughly $1 million a year.

“If we’re successful in forecasting and managing that, as we add more energy storage to the system, that’s where that benefit comes and that’s really in reducing our power costs, which, in turn, saves the members money as well,” he said.

The co-op provides power in Johnson, Sheridan, Campbell, Crook and Weston counties and in portions of southeastern Montana.

In 2022, the most recent data available on its website, Powder River Energy distributed 1.8 billion kilowatt hours of power throughout its service area.

The corporation was awarded the loan to employ this technology through the Department of Agriculture’s Powering Affordable Clean Energy program in January. The loan includes 20% forgiveness and the project qualifies for direct tax benefits, Roth said.

This story was published on February 20, 2025.