Michigan has ambitious clean energy laws on the books, while also facing a surging demand for power. What’s less known is that it also has an ambitious law for utility-scale battery energy storage, which experts say is needed to make the grid state’s grid work as it undergoes a major power shift.
That means there are lots of battery projects in the pipeline across the state, and that local governments have to make some quick decisions about how to handle them — often without much guidance. Here’s how that’s playing out in two Michigan communities.
Coldwater Township: “Work with them. Don’t push them away.”
In 2023, Michigan became the first Midwest state to set a goal for battery energy storage. That’s because with more wind and solar power in the mix, utilities need a place to store that energy when it’s generated, then distribute it later when demand peaks.
In simple terms, battery storage helps stabilize the grid, regardless of the ultimate power source. And Public Act 233 — which governs siting for all renewable energy projects in the state, while limiting local governments’ ability to set their own rules — says Michigan needs to have 2,500 megawatts of it by 2029. But as of right now, there’s just one utility-scale battery project up and running.
It’s the 100-Megawatt Tibbits Energy Storage installation in Branch County’s Coldwater Township. It’s not much to look at: just 80 rectangular boxes, basically semi-trailers, spread out in groups of two.
“So you’ve got 40 groups. And in each one they've got their own alarm systems, [and] they’ve got their own suppression systems,” said Coldwater Township Supervisor Don Rogers.
The boxes are spread out like that because the lithium-ion batteries inside can sometimes overheat in a process called thermal runaway. And if a fire breaks out, it can’t be put out with water — hence the alarm and fire suppression systems.
That’s just one potential concern with utility-scale battery storage. But overall, Rogers believes it’s a win-win scenario. Developers and their utility partners win, of course. So can landowners who lease their land, or portions of it, to developers for these projects.
But when it comes to host communities as a whole, Rogers said the biggest plus is that these projects set up a reliable, long-term stream of money. The local government gets state payments for each megawatt-hour built, and developers are usually willing to throw in additional payments and community benefits to sweeten the deal.
“The long-term sustainability of these projects to provide revenue — for the township, for the schools, for the county and for the entire area — is a major upside,” Rogers said.
As the first place in Michigan to host utility-scale battery storage, Rogers says Coldwater Township is constantly welcoming other local officials who want to see it for themselves.
“We've had numerous municipalities come and visit, and look at the setup and the system,” he said.
That’s because under the law, communities can’t just say no to renewable energy developers. If they do, or if the two sides can’t reach an agreement, the developers can take it to state utility regulators — specifically the Michigan Public Service Commission — instead. And in that case, the community could end up with a very generic, bare-bones deal called a compatible renewable energy ordinance, or CREO.
Rogers’ said Coldwater Township’s ordinance is significantly more restrictive toward data centers than what they would have gotten with a state-ordered CREO. Public Act 233 also has incentives that push developers to work out deals with host communities, rather than going directly to the state. Rogers said that gives local governments power to negotiate specific details on their terms, and he urges local government leaders to try their best to reach an agreement with developers.
“Work with them,” Rogers said. “Have a dialogue. Don't push them away. Don't put up a roadblock until you talk to them and find out.”
But in one small West Michigan community, some residents say they’d rather take their chances with the state.
Oshtemo Township: “Without bees, our farm goes bankrupt.”
Katie and Ken Schneider own and run Little Pistol Farms, a 29-acre pumpkin and produce farm in Oshtemo Township, just west of Kalamazoo. They’ve lived there for 10 years, but only became what Katie calls “accidental farmers” committed to environmentally-friendly agriculture practices last year.
That’s one reason why the Schneiders became concerned when they learned at a Township Commission meeting last fall that a battery energy storage project was planned right next door to their farm. And as Katie started researching the issue, they got even more upset when they realized that this had been in the works for awhile. One of their neighbors — who happens to live out of state — had leased his 52-acre property to a developer, NewEdge Renewable Power, in 2023.
The more research Katie did, the more worried she became about the risks, like fires or possible explosions that could release toxic gases, for example, or mandatory fencing that could be a barrier to local wildlife. And Ken Schneider said the droning hum that comes along with large-scale battery projects is a particular concern for them. That’s because pumpkins aren’t traditional row crops; they have flowers that require pollination.
“And in order to get pollination, you need bees,” Ken explained. “These battery energy storage systems use DC/AC inverters, and inverters put out a high-pitched frequency that bees don't like. It drives away bees. Without bees, our farm goes bankrupt.”
The Schneiders alerted their neighbors, who had also been in the dark about the impending project. Together they launched a grassroots and online campaign against it. That gathered steam as more people learned about the project and expressed opposition. And that eventually snowballed into political turmoil: there’s now an effort to recall multiple local officials, including the Oshtemo Township Supervisor, from office.
The Schneiders and their neighbors insist their opposition to this battery project isn’t motivated by a reflexive, “not in my backyard” stance to renewable energy or new development. They say it’s just one example of an ongoing lack of transparency in local government. In the meantime, Oshtemo Township has a moratorium on renewable energy development while township officials develop a compatible renewable energy zoning ordinance.
“We do need green energy and energy storage, but I think very thoughtful placement is critical,” Katie Schneider said. “And our voices haven't been heard.
“Under PA 233, you have to give them a place. Well, we have a place. It's called our industrial zone.”
A “quick change for local governments”
While the law gives renewable energy developers the option of bypassing local governments and going directly to state utility regulators, no battery developers have taken that route so far in Michigan. Instead, they "have been trying to work it out locally with communities through zoning,” said Madeleine Krol, a clean energy land use specialist with the University of Michigan’s Center for Empowering Communities.
Krol works directly with local governments trying to understand their options for proposed renewable energy projects under the law. She said common concerns include setbacks, sound buffering options, fire safety protocols, and plans for decommissioning the site at the end of its useful life.
Krol said the issues raised by residents in places like Oshtemo Township are valid, but added that battery storage technology has gotten both safer and more efficient in just the past couple of years. There are currently more than 60 proposed battery projects in the pipeline across Michigan, though Krol said it’s unlikely all of them will actually get built.
But with the state aiming to deploy more than 2,000 additional megawatts of battery storage in just the next three years, it’s “quite a quick change for local governments to understand,” Krol said. “And it's really tricky to know what is a workable battery ordinance, because we're still at the beginning of big battery deployment. So there's just not a lot to look at and learn from.”
