Danvers, Massachusetts — Danvers Electric, one of Massachusetts’ longest-serving municipal utilities, has deployed a new 4.99 MW / 15 MWh battery energy storage system (BESS) to strengthen grid reliability, manage long-term energy costs, and support the town’s sustainability goals.
The Danvers Electric battery energy storage system, powered by Caterpillar’s Cat® Asset Management Platform (AMP), represents a fully integrated municipal energy solution designed to deliver financial and environmental benefits to the community of more than 30,000 residents and businesses.
The project was developed in collaboration with Tangent Energy Solutions, a wholly owned subsidiary of Caterpillar Inc., and delivered as a streamlined, end-to-end package — including execution, operation, and full financing.
Preparing the Grid for Rising Demand
Municipal utilities nationwide are facing increasing pressure from electrification, expanding demand, and evolving regulatory requirements.
For Danvers Electric, preparing for the rapid growth of heat pumps and electric vehicle charging stations was a key driver behind the project.
“With so many uncertainties around electrification, nobody really knows what the next five to ten years will look like,” said Clint Allen, Utility Director at Danvers Electric. “Preparing our grid for the surge in heat pumps and EV charging stations — while making sure we can supply reliable and affordable energy — is a top concern. This project helps us move forward on all those fronts.”
The new storage system positions Danvers to maintain energy security over the coming decade while minimizing cost impacts for customers.
Reducing Peak Costs and Supporting Climate Goals
Using Cat AMP, Caterpillar’s distributed energy resource management system (DERMS), the battery monitors and analyzes grid data in real time. The system can:
- Dispatch stored energy into market programs
- Reduce municipal load during peak demand periods
- Offset exposure to costly peak energy charges
The solution allows Danvers Electric to strategically discharge the battery when grid demand and pricing are highest — delivering measurable cost savings.
“This project started as a way to manage our exposure to costly peak energy,” Allen said. “When the town adopted its climate plan, the battery system folded perfectly into it. It’s a financial benefit to the town, and it helps us hit our carbon-reduction goals at the same time.”
Fully Financed, Long-Term Energy Strategy
The project required minimal upfront capital from Danvers Electric. Through a financing structure provided by Cat Financial, Caterpillar covered all equipment, construction, and development costs.
The agreement includes a 15-year operating contract, ensuring long-term performance and predictable cost management for the utility.
“Through Cat AMP software and our expertise in predicting grid peaks, we’re able to ensure that Danvers’ battery discharges at the right times to reduce costs and maximize value,” said Steve Gupman, Director of Energy Services at Caterpillar. “That structure directly benefits the community and demonstrates how energy assets can deliver both economic and environmental advantages.”
The Danvers project showcases an innovative model for municipal utilities seeking flexible, affordable, and low-risk energy solutions.
About Caterpillar
For more than 100 years, Caterpillar Inc. has helped build a more sustainable world. With 2025 sales and revenues of $67.6 billion, the company is a global manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives.
Caterpillar operates through its primary business segments — Power & Energy, Construction Industries, and Resource Industries — supported by a global dealer network and financing services through Cat Financial.
