By MARK SARDELLA

PEABODY — Massachusetts Municipal Wholesale Electric Company (MMWEC) can proceed with plans to build a proposed 55-megawatt reliability resource in Peabody, after the Department of Public Utilities (DPU) gave the project the green light earlier this month.

The Wakefield Municipal Gas & Light Department is a member of MMWEC, the state’s not-for-profit agency for municipal light plants in Massachusetts.

The WMGLD is one of 14 departments in MMWEC communities that has invested in the proposed Peabody “peaker” plant, known as “Project 2015A.” The gas-fired plant would be a back-up energy source and would generate power only during periods of peak electricity usage — estimated to be about 239 hours per year — and enable the participating municipal light departments to meet capacity requirements in the New England market.

Capacity is the ability to generate energy/electricity. While energy/electricity usage varies seasonally and daily, there must be enough capacity (the ability to provide generation) during any of those periods.

Project 2015A also locks in a price, according to MMWEC, protecting Municipal Power companies, and their ratepayers, against price volatility in the New England market.

The Aug. 12, 2121 DPU order authorizes MMWEC to borrow up to $170 million. That includes $85 million to fund the project, plus $85 million in authority to refund and refinance the initial borrowing (when interest rates warrant) so as to lower the cost of the borrowing.

MMWEC officials have insisted that having the required capacity through Project 2015A frees municipal power companies to purchase or own more renewable energy.

But despite its limited role as a peak capacity resource, Project 2015A drew organized opposition from environmental groups opposed to the construction of any new fossil fuel burning plants. As a result, the MMWEC Board of Directors took the unusual step early in the summer of authorizing a 30-day minimum pause to address concerns brought to the MMWEC Board.

“Breathe Clean North Shore,” a group formed to oppose the Project 2015A, called upon MMWEC to “withdraw the proposal to move forward with this project and, instead, replace it with a project that will reduce the burden on the communities of Peabody and Danvers, and support participating Municipal Light Plants in becoming leaders of the Commonwealth’s transition to a clean, renewable future.”

Over the summer, MMWEC updated its project proposals to state that it no longer plans to include a proposed new 200,000-gallon backup oil storage tank on the Peabody site. Also, MMWEC will now use urea, a non-hazardous substance, rather than ammonia, as a scrubbing agent for emissions. In addition, MMWEC is exploring the potential to incorporate green hydrogen into the fuel mix to further reduce CO2 emissions from the project.

Wakefield Municipal Light Department General Manager Pete Dion was happy with the DPU decision.

“The Wakefield Municipal Gas and Light Department is pleased with the DPU’s August 12, 2021 ruling approving the financing of Project 2015A, because it will support our efforts to achieve the State’s climate goals in a safe, reliable and cost-effective way,” Dion said.

“Project 2015A will contribute to grid stability and resiliency, while reducing overall carbon emissions in the region, as we continue to invest in the renewable resources the future demands,” Dion added. “We have always strived to be leaders in this effort, as demonstrated by our participation in the State’s first large wind project, Berkshire Wind, and one of the first battery storage projects in Massachusetts, here in Wakefield at our Beebe Substation.”

But Dion stressed that the move toward renewables must be balanced with reliability.

“As we continue to make investments in wind and solar in the coming years,” Dion said, “we need to be sure the grid can withstand the intermittent nature of renewables and remain safe and reliable for everyone.”