DERBY – The city is considering an offer from a company to add an energy-producing battery and more solar panels to the Derby landfill at 80 Pine St.
“Over 86 percent of our municipal revenue comes from the residential sector,” Derby Economic Development Director Roger Salway said. “What we are trying to do in economic development is to increase the percentage of revenue coming from commercial and industrial (properties). It’s currently only 14 percent. That is really very low.”
Salway made his comments during the Feb. 27 meeting of an Aldermanic subcommittee called the property and development committee. Any deal would have to have the approval of the full Board of Aldermen and Alderwomen.
There’s an existing solar farm on the landfill owned by BQ Energy, LLC, a company based in Wappingers Falls, N.Y. The city receives $45,000 per year from that project. The same company is behind the proposed additions.
Adding a battery capable of producing 4 megawatts would add another $25,000 annually to the city’s revenue, according to a letter from Paul Curran, BQ Energy’s founder.
Expanding the existing solar farm would add between $15,000 (1.5 megawatts) and $50,0000 (4 megawatts) to the city, depending on the size of the expansion.
Salway said the 40-acre landfill isn’t generating tax revenue for the city.
“Together, the addition of battery storage and the expansion of the solar installation would generate $120,000 per year, guaranteed for 25 years — around $3 million at no cost to the city,” Salway said in a message to The Valley Indy.
Richard Buturla, the Derby corporation counsel, said before Derby does anything he needs BQ Energy to submit business documents showing they own the solar farm (it’s currently owned by BQ but under another name) and what the deal structure would look like, such as whether Derby would be asked to sign a lease or licensing agreement.
BQ Energy’s project wasn’t birthed from a Derby request for proposals. Buturla said he has to review the details of the proposal to make sure it adheres to the Derby Charter and all applicable laws.
Electricity produced at the site is sold to United Illuminating. The utility company would also need to approve BQ Energy’s additions before it can become a reality.
The matter will most likely come up at a future Derby legislative meeting.