Pascoag Utility District Increasing Reliability and Savings Through Infrastructure Bank Loan
PROVIDENCE, R.I. – Rhode Island Infrastructure Bank announced $1.4 million in financing through the Efficient Buildings Fund (EBF) for infrastructure upgrades in the Pascoag Utility District (PUD) today. PUD is utilizing the funds to upgrade its power grid through the acquisition and integration of a battery storage facility. By borrowing with the Bank, as opposed to a traditional private lender, PUD ratepayers will save $50,000 on debt-service over term of the loan.
“The Bank’s Efficient Building Fund provides a wide-range of options for municipalities and utilities to make significant infrastructure investments and reduce energy usage and costs,” said Jeffrey R. Diehl, CEO of the Infrastructure Bank. “PUD’s investment in battery storage technology will provide a stronger, more resilient power grid for its customers.”
The innovative addition of a 3MW/9MWh battery storage facility on Davis Drive in Pascoag, RI will increase reliability and eliminate the need for PUD to expand and increase the capacity of existing infrastructure through more expensive, traditional methods.
The Efficient Buildings Fund provides below-market interest rate loans to municipalities and their utilities, school districts and quasi-state entities to invest in clean energy projects. Since 2016, the Efficient Buildings Fund has reduced energy, maintenance, and debt-service costs for municipalities by approximately $66 million dollars through investments in onshore wind, solar, LED lighting and highly efficient heating and cooling improvements. These projects are estimated to reduce emissions equivalent to the annual carbon footprint of 3,400 homes.
Overall, the Bank’s Efficient Buildings Fund has provided $33 million in loans to thirteen municipalities across the State.