Albany Considers Battery Storage to Curb Utility Losses

The city commission is weighing two battery system proposals to mitigate financial losses from excess energy contracts.

Updated on Oct. 15, 2026 in Utilities

Albany Considers Battery Storage to Curb Utility Losses

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Albany is evaluating a battery energy storage system designed to help the city manage its contractual energy purchase obligations. The project aims to reduce recurring financial losses that reached an estimated $2 million in 2025.

Why it matters

The city faces persistent financial strain because it is required to buy a specific amount of electricity regardless of local demand, often selling the surplus at a significant loss. Investing in storage could allow the city to retain excess power for use during peak times.

Albany Utilities saw losses after purchasing energy at 7 cents per kilowatt while reselling excess power for only 4 cents. The proposed $45 million and $90 million storage projects would be supported by federal funding covering 50% of construction costs.

The players

Albany City Commission

This local government body is responsible for evaluating infrastructure proposals and managing the municipal budget for the city of Albany.

Municipal Electrical Authority of Georgia

This entity provides wholesale electricity services to member municipalities across the state through long-term energy contracts.

Dougherty County Commission

This administrative body oversees regional land use and utility regulation, including the recently passed battery storage ordinance.

The details

The commission is reviewing two distinct system options that would store energy during low-usage periods for redistribution during peak hours. Dougherty County recently established formal regulations for such battery storage systems in October 2025 to guide project implementation.

2025: Albany Utilities incurred an estimated $2 million financial loss.
October 2025: The Dougherty County Commission approved new regulations for battery storage systems.
October 1, 2026: Solar energy companies presented two project options to the Albany City Commission.

Market Landscape

This proposal mirrors a broader trend among municipalities seeking to modernize energy grids through strategic storage adoption. By aligning with the regulatory framework set by Dougherty County's October 2025 ordinance, Albany is positioning itself to manage surplus energy more effectively.

While the project aims to stabilize municipal utility finances, taxpayers could eventually see impacts depending on the scale of the debt incurred by the chosen storage option. Residents currently pay around 15 cents per kilowatt for electricity, a rate that could be affected by long-term utility cost management.

The takeaway

Cities often face financial challenges when locked into rigid long-term power purchase agreements that do not match real-time energy usage. Investing in storage technology offers a path to mitigate these losses, provided the construction costs align with long-term savings projections.