Distributed Capacity Procurement · Case Study

What a DCP Deployment Looks Like: 75 MW, Municipal Utility, 24 Months

A comprehensive assessment across 9 substations and ~60 candidate sites, showing how Sparkfund's Distributed Capacity Procurement delivers utility-grade power to a data center customer while creating lasting grid and community value for the municipal utility.

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Recommended Deployment Capacity
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Grid Value to the Municipal Utility (75 MW)
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Maximum Deployment Potential
The Product

Utility-Grade. Accredited.
On the Distribution Grid.

This isn't demand response. It isn't behind-the-meter. It's front-of-the-meter battery storage — utility-owned assets, integrated with DERMS, ADMS, and SCADA, dispatched from the control room, and accredited as capacity on the utility's resource plan. The kind of capacity that counts.

⚡ DCP BESS — How It Works
DCP BESS — How It Works
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Accredited capacity that counts on the stack
DCP batteries qualify for capacity accreditation in the markets where utilities need it most. The capacity you fund shows up on the utility's resource plan, in regulatory filings, and on the transmission operator's stack. Bankable. Visible. Real.
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Deployed where the grid is constrained
Sparkfund's proprietary host network spans thousands of pre-vetted commercial and industrial sites nationwide — mapped to where the grid is constrained and where large load is growing. We don't start from zero. Deployments start fast and finish strong in any geography. Targeted siting means capacity lands exactly where it supports new large-load customers, not just where land is cheap.
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Ownership structured for your balance sheet
The DCP model supports multiple ownership structures: utility-owned, large-load customer paid, or third-party infrastructure capital owned. The right structure depends on your regulatory market, financing preferences, and long-term capacity strategy — we help you navigate the options.
How a 4-Hour Battery Supports an 8,760-Hour Load

How a 4-Hour Battery Supports an 8,760-Hour Load

How a 4-Hour Battery Supports an 8,760-Hour Load
DCP batteries do not serve the data center directly. They shave peaks off distribution feeders, taking the load off the transmission system during critical hours.
DCP batteries are ~2 MW avg size and SCADA-enabled, giving them high-speed, secure monitoring and control capabilities across a wide range of points.
This creates headroom on the transmission corridor, allowing the data center's flat, constant demand to slot in faster — improving total available capacity.
Distributed batteries don't power the data center. They clear the peaks to create headroom.
The Ready-to-Go National Host Network

Sparkfund's Ready-to-Go National Host Network

The Ready-to-Go National Host Network
We don't start from zero. We maintain a national network of hosts with hundreds of pre-agreed, vetted sites ready for battery deployment.
Advantage compared to utility scale: No multi-year site acquisition process. Low barrier to interconnection and permitting — ready to deploy now.
Strategy: Sites are mapped to transmission corridors serving data center load. We deploy capacity exactly where the grid needs it to power new large load customers.
A head-start advantage: Pre-vetted host relationships give deployment a head start — skipping years of site acquisition and negotiation that would delay any utility-scale alternative.
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Distributed Architecture
1–3 MW batteries sited at commercial, industrial, and municipal buildings across the service territory — no single point of failure, resilient by design.
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4-Hour Dispatch Capability
Each BESS provides 4-hour discharge capability timed to evening demand peaks — exactly when the transmission corridor is most constrained. SCADA control enables precise, grid-synchronized dispatch.
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Utility-Coordinated Control
All batteries operate under a coordinated dispatch agreement with the municipal utility, ensuring grid stability, FERC compliance, and seamless integration with the transmission operator's operations.
Financial Rationale

The Business Case for DCP

Sparkfund's turnkey DCP model offers a compelling cost structure compared to alternatives — with the data center customer funding deployment capital and the municipal utility capturing permanent grid and community benefits.

Three-Scenario Deployment Pricing

DeploymentCapacityCost per MW
Conservative50 MW / 200 MWh~$2.15M
Recommended75 MW / 300 MWh~$2.10M
Full Buildout150 MW / 600 MWh~$2.05M
Scale Economics: Per-MW cost declines with deployment size as templatized designs, aggregated equipment procurement, and shared mobilization costs are spread across more capacity. All-in pricing includes equipment, labor, balance-of-system, staffing, and contingency.

Alternative Path Comparison

Alternative PathEst. CostTimeline
New high-voltage transmission line$400–600M5–7 years
Major substation upgrade$150–250M5–7 years
DCP Deployment (75 MW)~$158M18–24 months
Speed Advantage: DCP deploys in 18–24 months — 3–5× faster than transmission alternatives — while delivering equivalent or greater grid relief and 20 years of ongoing grid services value.
3–5×
Faster Than Alternatives
DCP deploys in 18–24 months versus 5–7 years for new transmission infrastructure — giving the data center immediate grid capacity headroom.
$300M+
Infrastructure Cost Avoided
DCP avoids the need for a new high-voltage transmission line or major substation upgrade — a cost that would otherwise fall on utility ratepayers.
20 yr
Long-Term Value Capture
DCP assets provide ongoing grid services and community resilience benefits over a 20-year operating life — not just during the data center construction window.
How the Sparkfund Model Drives Down Costs

Six Structural Advantages Over
Conventional Development

Sparkfund's DCP model eliminates costs unavoidable in traditional utility-scale development — translating directly into a lower all-in price per kilowatt deployed.

Eliminates Fee Stacking
Sparkfund's integrated model collapses developer, EPC, and O&M margins into a single transparent fee — removing hundreds of dollars per kW in duplicated markups.
Efficient Risk Allocation
Risk is allocated to the party best positioned to manage it — eliminating contingency premiums that inflate 3rd-party bids at every layer.
Retention of Unused Contingency
Unused contingency reserves are returned to the customer — not retained as profit — aligning incentives toward efficient execution.
Templatized Project Design
Reusable engineering templates across 49+ sites dramatically reduce per-site design costs. First site sets the template; every subsequent is a variation, not a redesign.
Transparent Vendor Competition
Open competitive bidding across qualified BESS vendors drives equipment pricing down. Aggregated volume across multiple programs creates additional leverage.
Optimized Working Capital Cost
Milestone-based payments match capital deployment to progress — minimizing interest carry and the financing premium in lump-sum structures.

DCP vs. 3rd-Party Developer — Cost per kW (75 MW)

Cost Component3rd-Party DeveloperSparkfund DCPSavings
BESS Equipment$1,188/kW$1,058/kW−$130
Labor & Balance of System$813/kW$608/kW−$205
Prime Contractor Fees$500/kW$208/kW−$292
Staffing & Management Fees$0/kW$164/kW+$164
Taxes, Interconnect & Permitting$86/kW$70/kW−$16
All-In $/kW$2,586/kW$2,108/kW18%+ savings
Pricing based on RFI responses. Final pricing subject to final scope, vendor selection, and permitting outcomes.
Site Assessment Results

Grid Analysis & Site Development Findings

Sparkfund conducted a rigorous two-track assessment across the municipal utility's full commercial and industrial building stock — evaluating electrical capacity, structural viability, host interest, and permitting readiness at ~60 candidate locations.

Grid Analysis Substation Capacity & Site Identification
Grid Analysis Objective: Determine available hosting capacity at each of the municipal utility's 9 distribution substations and identify candidate host sites with sufficient electrical and structural capacity for BESS installation.
Substation Survey
Mapped all 9 utility substations. Reviewed one-line diagrams, transformer ratings, available feeder capacity, and interconnection headroom to establish hosting limits at each node.
Host Site Identification
Identified ~60 commercial, industrial, and municipal buildings within each substation's service territory. Evaluated building size, roof/parking structure, electrical service level, and load profile fit.
Preliminary Sizing
Estimated available BESS capacity at each site based on available space, electrical interconnection options, and structural constraints. Matched to substation hosting limits.

Grid Analysis: Hosting Capacity Potential

Sparkfund modeled three capacity scenarios at each substation — Static (conservative), Dynamic (with BESS dispatch), and N-1 Flexible (max with protection upgrades) — to determine deployable MW without transmission investment.

Inputs
Load growth + planning criteria · SCADA load profiles · Equipment ratings
Municipal Utility · Regional Public Power Agency · Independent Grid Analytics Firm · Sparkfund
Modeling
Baseline loading assessment · BESS sizing & dispatch methodology
Outputs
Hosting capacity by scenario · Distribution deferral · Additional capacity unlocked
SubstationStatic (MW)Dynamic (MW)N-1 Flexible (MW)
Substation A121862
Substation B0.00.021
Substation C51212
Substation D71228
Dedicated Data Center SubstationN/AN/AN/A
Substation E8.08.08.0
Substation F277
Substation G799
Substation H8.099
TOTAL50 MW75 MW150 MW
50 MW
Static — Conservative
No active dispatch. Lowest execution risk.
75 MW ← Recommended
Dynamic — Recommended
With daily BESS dispatch — basis for recommended deployment plan.
150 MW
N-1 Flexible — Maximum Potential
Max with protection upgrades. Informs long-term potential.
Site Development Deep-Dive Site Assessment & Conceptual Design
Site Development Objective: Conduct detailed engineering assessments at priority sites — validating structural capacity, electrical interconnection design, permitting pathway, and host agreement feasibility to prepare recommended deployment sites for construction-ready status.
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Electrical Interconnection Review
Detailed review of each site's service entrance, transformer capacity, metering, and available space for new switchgear. Identified primary vs. secondary interconnection options and confirmed utility coordination requirements for each feeder.
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Structural & Site Engineering
Assessed available ground space, parking structure load capacity, and roof structural ratings. Developed conceptual layouts for BESS equipment placement, including clearance, maintenance access, and security requirements.
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Permitting & Host Readiness
Mapped zoning classifications, fire code requirements, and building permit pathways. Evaluated host organization willingness and legal capacity to enter long-term DCP host agreements. Identified sites requiring environmental review.

Portfolio Development Methodology

Site Development converted substation hosting capacity data into a construction-ready portfolio through a five-stage funnel — progressively narrowing from ~200 candidate locations to 4 vetted, deployment-ready sites.

Step 1
Substation Locations
Map all 9 utility substations and service territory boundaries.
Step 2
Substation Targeting
Prioritize by hosting capacity, constraint severity, and site density.
Step 3
Site Viability
Screen ~200 candidates for structural, electrical, access, and zoning fit.
Step 4
Site Shortlist
Narrow to ~40 sites with host interest and clear interconnection pathway.
Step 5
Shortlist Vetted
Conceptual design, LOI execution, and utility pre-application for 4 sites.

Site Readiness Results — Priority Site Portfolio

Site ArchetypeSubstationTypeCapacityInterconnectStructuralHost StatusReady for Deployment
Urban Commercial HostSubstation ACommercial1 MWSecondaryParking lotEngaged✓ Yes
Suburban Commercial HostSubstation DIndustrial2 MWPrimaryGround mountEngaged✓ Yes
Municipal Vacant ParcelSubstation FMunicipal3 MWPrimaryGround mountUtility partner✓ Yes
Large Industrial HostDedicated SubstationIndustrial5 MWPrimaryGround mountEngaged✓ Yes
Four representative site archetypes — spanning urban commercial, suburban commercial, municipal vacant parcel, and large industrial — were selected from the Site Development funnel for full conceptual design. These archetypes validate design patterns across the 1–5 MW range that can be replicated across the broader portfolio.

Site Readiness Indicators

Grid Capacity Headroom
75 MW available under normal operating conditions; 150 MW with additional upgrades
Physical Hosting Capacity
~150 MW of physical hosting capacity identified across assessed properties
Site Quality (Drive-By)
69% of assessed sites rated Medium or High potential for deployment
Design Readiness
4 sites with complete conceptual designs across the 1–5 MW range
Interconnection Cost
Minimal interconnection costs confirmed with utility officials
Operational Model
Normal control environment; no DERMS implementation required
Summary: A rigorous assessment confirmed both the grid capacity and the site-level feasibility to deploy 75 MW of distributed capacity on a 24-month timeline.

Portfolio Development Outputs

The two-phase assessment produced a fully construction-ready portfolio — with every site characterized, de-risked, and staged for rapid deployment once the DCP Agreement is executed.

~200
Sites Screened
Across the utility's service territory
35
Sites Assessed
Detailed viability and grid interconnection review
4
Sites Designed
Construction-ready with full conceptual design

Shortlisted Portfolio — 11 MW Total

Urban Commercial Host
1 MW
Distribution / commercial host. Strong grid interconnection proximity and confirmed site control pathway.
Suburban Commercial Host
2 MW
Industrial / fuel distribution host. Strong grid interconnection proximity and site access. Additional deployment viability confirmed.
Municipal Vacant Parcel
3 MW
Municipal host on city-owned land. Dual benefit: grid services revenue and community resiliency for emergency operations.
Large Industrial Host
5 MW
Flagship anchor site adjacent to the data center. Largest site in portfolio. Direct speed-to-power grid alignment.
Portfolio Summary
11 MW
Shortlisted capacity — designed and construction-ready
4 Sites
Fully designed upon DCP Agreement execution
76 MW
Additional deployment pipeline pre-screened for rapid advancement
Economic Impact

The DCP Program Delivers
Extraordinary Economic Value

Across all value streams — grid services, speed-to-power, and community resilience — the DCP program creates hundreds of millions of dollars in measurable economic value for the data center customer, the municipal utility, and the region.

$0M
Grid Value to the Municipal Utility
75 MW recommended deployment over 20 years
$0M+
Speed-to-power Value for the Data Center Customer
Accelerated data center buildout vs. transmission wait
$0M
Total Grid Value at 150 MW
Full buildout over 20-year program life

Grid Value Breakdown (75 MW Recommended Deployment)

Energy Arbitrage (charging off-peak, discharging peak) $0
Transmission Constraint Relief (avoided curtailment) $0
Distribution Capacity Deferral $0
Resilience & Reliability Value (avoided outage costs) $0
Speed-to-power Value for the Data Center Customer

$200M+ in Accelerated
Data Center Value

Without DCP BESS, the data center customer faces a 5–7 year wait for new transmission infrastructure before adding significant capacity. Each year of delay represents meaningful foregone compute revenue and capital deployment inefficiency.

DCP BESS eliminates this wait — enabling the data center customer to build and operate new capacity 4–5 years earlier than transmission alternatives. The speed-to-power benefit exceeds $200M+ over the program life.

Years of Data Center Delay Avoided
4–5
years faster to market vs. new transmission
$50M+
Per Year of Accelerated Deployment
Community Resilience

Beyond Grid Services:
Community Protection

The DCP BESS fleet delivers more than grid economics — it provides critical backup power for community infrastructure that protects lives and livelihoods during grid outages and emergencies.

Resiliency Use Case
Water Pumping Stations
Host
Municipal Vacant Parcel
BESS Size
1 MW / 4 MWh
4-hour backup capacity
Backup Duration
18–20 hrs
Continuous pump operation
Annual Savings
~$35k
Diesel generator displacement
The BESS ensures uninterrupted water supply during grid outages — replacing diesel generators and eliminating fuel logistics. Critical for public health and fire suppression during extended emergencies.
Resiliency Use Case
Community Church
Emergency Load
50 kW critical
Cooling, heating, comms
BESS Size
2 MW / 8 MWh
Full emergency capacity
Backup Duration
150 hrs
Extended shelter operations
Resiliency Value
~$5k
Per emergency event
The church serves as a designated community emergency shelter. BESS-backed power supports cooling/heating, emergency communications, coordination, and extended community refuge operations well beyond standard generator limits.
Community-Scale Impact
The DCP BESS fleet provides a distributed resilience layer across the service territory — ensuring water supply, emergency shelter, and community coordination remain operational during the grid events that matter most.
Deployment Scenarios

Three Pathways to Scale

Sparkfund modeled three deployment scenarios — from a conservative deployment to full program buildout — each with distinct grid impact, economics, and implementation timeline.

50 MW
BESS Capacity
200 MWh
Total Storage
~$30M
Grid Value (20yr)
18 mo
Deploy Timeline

Conservative scenario: 50 MW / 200 MWh across ~30 host sites, focused on Tier 1 substations. Relieves ~70% of the identified transmission constraint at peak load. Lowest execution risk, fastest deployment. Recommended as a conservative option for earliest possible capacity relief.

75 MW
BESS Capacity
300 MWh
Total Storage
~$45M
Grid Value (20yr)
24 mo
Deploy Timeline

Recommended scenario: 75 MW / 300 MWh across ~50 host sites spanning all 9 substations. Fully resolves the transmission constraint and provides headroom for initial data center load growth. Delivers ~$45M in grid value to the municipal utility over 20 years and unlocks the data center customer's speed-to-power benefit.

150 MW
BESS Capacity
600 MWh
Total Storage
~$85M
Grid Value (20yr)
36 mo
Deploy Timeline

Full buildout: 150 MW / 600 MWh across 80+ host sites — full deployment of BESS hosting potential. Enables the data center customer's full expansion and positions the utility as a model for distributed energy deployment. Delivers ~$85M in grid value over 20 years.