Consumers Energy and DTE, co-owners of the Ludington Pumped Storage Plant, have announced a major maintenance and upgrade project that promises 100 construction jobs per year and a 16%  increase in the plant’s power generation.  The maintenance and efficiency upgrade will increase the generating capacity of the plant from its current level of 1,872 megawatts (MW) to approximately 2,172 MW.

Each utility will invest approximately $40 million per year over 10 years.  Toshiba’s U.S. subsidiary, Toshiba International Corp. (TIC), has signed a contract with Consumers Energy and DTE for the overhaul of the hydroelectric power equipment.  The $500 million contract involves the replacement of six 312 MW pump turbines and upgrades to the associated motor generators and other equipment.  Installation of the new equipment will start in June 2013, and all units are expected to be commissioned by the end of 2019.

Design engineering for the project will be done by Toshiba in Japan, and most of the equipment will be manufactured by a Toshiba subsidiary in China.  Installation work for hydroelectric equipment is carried out by Hydro Power Services, LLC. (HPS), based in Chattanooga, Tennessee. TIC owns a majority interest in HPS.

Pumped storage hydroelectric generation assists electric utilities in load balancing to meet fluctuations in electricity demand.  The Ludington plant pumps water during the night uphill 372 feet to its 27 billion gallon reservoir. The Ludington plant has the world’s largest motors when in pumping mode. During day-time periods of peak customer electric demand the water is released through turbines to generate electricity.

The Ludington plant serves as a storage facility for renewable energy produced during off-peak periods.  As more wind generation is added in the Midwest region, the Ludington plant can be used at night and during other periods when demand for electricity is low to “store” the wind energy until it’s needed by electric customers. The Ludington plant thereby addresses a key challenge of wind energy, which is produced intermittently and cannot be stored.

“We are pleased to be making this investment in the Ludington facility,” said Steve Kurmas, president of Detroit Edison, 49 percent owner of the Ludington plant. “The upgrades will improve its efficiency, increase its role in support of clean-energy sources for Michigan, create jobs and ensure that the plant will continue to contribute to the economy of the Ludington area and Michigan for many more decades. This kind of long-term investment would not have been possible without the comprehensive energy legislation adopted by the state legislature in 2008.”