Indianapolis Power & Light Co. (IPL) plans to construct a $25 million energy-storage facility in central Indiana.
Department of Metropolitan Development officials said IPL is looking at two spots for the battery energy storage system (BESS): one at the Harding Street Station in Marion County, Indiana; and the other is at a new $600 million Eagle Valley plant under construction in Morgan County.
Officials estimate the project at the Harding Street plant to cost $24.5 million for new equipment and $500,000 for real estate. However, the project would not be eligible for a real estate tax abatement. IPL is seeking a 10-year abatement of personal property tax that would save nearly $3.1 million during the abatement period. The Indianapolis Business Journal reported the utility would pay an estimated $1.9 million in personal property taxes over that time period and about $291,000 annually after the abatement expires.
IPL spokeswoman Brandi Davis-Handy said the utility would move forward on the facility at Harding Street if the project receives the local tax incentives.
Construction on the energy storage facility could begin this summer and be completed by fall 2016.
The Harding Street plant is scheduled to be converted from a coal-fired power plant to a natural gas-fired plant by next year.
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