Memphis utility requests proposals for $200M renewable energy initiative

March 17, 2025

Memphis, Tennessee, is planning to provide more renewable power to its residents. The city utility Memphis Light, Gas and Water (MLGW) is preparing to invest approximately $200 million in renewable energy infrastructure, announcing a Request for Proposals (RFP) for 100 megawatts of solar generation paired with 80 megawatts of utility-scale battery storage capacity.

The municipal utility, which serves Memphis and Shelby County, released the formal RFP on March 14, with responses due by April 28. The initiative is one of the largest renewable energy commitments by a municipal utility in Tennessee and intends to enhance the reliability and resilience of MLGW’s electric grid while maintaining affordable rates for its customers.

Utilities across the U.S. are looking to modernize aging infrastructure while transitioning to cleaner energy sources. The project promises to bring increased energy security during increasingly frequent extreme weather events, while potentially creating hundreds of construction jobs in the region. While the project requires substantial upfront investment, it offers the long-term benefit of low-cost power from the sun.

The project has two main components: a solar generation facility paired with battery storage and standalone battery installations distributed throughout the utility’s service territory. MLGW is considering both ownership models in which the utility would operate the facilities and power purchase agreements under which independent operators would sell electricity to the utility.

Specifically, the utility is seeking 100 megawatts of solar generation paired with 50 megawatts of battery storage that can provide power for two to four hours. These facilities could be constructed on MLGW-owned property, within the utility’s service territory or at other suitable locations recommended by vendors.

Additionally, MLGW plans to install 30 megawatts of standalone battery storage—20 megawatts at a predetermined substation and 10 megawatts distributed throughout the system. These battery installations will help balance load during peak usage times and provide backup power during outages, enhancing overall grid reliability.

The solar farms alone could power approximately 15,000 homes, based on average residential consumption, while the battery systems would allow MLGW to store excess energy generated during sunny days for use when solar generation drops or during evening peak demand periods.

Construction on the project is expected to begin before the end of 2025, with the first operations targeted for the third quarter of 2026. Companies interested in submitting proposals can contact MLGW at DistributedEnergyRFP@mlgw.org for more information.


Image by Sebastian Ganso from Pixabay

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