Solmar Insights
Lincoln Electric System (LES) has completed commissioning of a 3-MW/12-MWh zinc-based battery energy storage system, which is set to enhance a 30-MW microgrid serving high-priority loads in downtown Lincoln, Nebraska. The project, leveraging technology from Eos Energy Enterprises, upgrades resilience for the state Capitol complex and several government and public safety facilities at a time when the demand for battery storage is rising in US power markets.
Key figures
3-MW/12-MWh zinc battery system
30-MW microgrid in Lincoln, NE
Microgrid capacity boost of ~10%
Microgrid composition and purpose
The Lincoln microgrid is designed to serve state and local government offices, public safety sites, and other essential services in Nebraska’s state capital. Anchored by a dual-fuel combustion turbine that operates primarily on natural gas, the microgrid portfolio also incorporates 300 kW of customer-owned solar power and 500 kW of customer-owned thermal energy storage. With the addition of the zinc battery system, the grid’s operational flexibility and backup capacity are increased by approximately 10 percent, according to LES management.
The microgrid spans critical infrastructure zones, providing back-up during outages and grid contingencies. The sites connected to this microgrid, including the Nebraska Capitol complex, a federal building, city offices, and two public safety facilities, benefit from a more robust and flexible local generation and storage portfolio. This localized asset reduces reliance on upstream transmission during peak events or disturbances.
Location-wise, the battery system is installed at an existing substation in central Lincoln, leveraging established grid connections for streamlined integration. The approach supports both reliability and capacity expansion without significant new construction, optimizing asset utilization for the LES service area.
Technology choices: why zinc-based storage?
The 3-MW/12-MWh battery system utilizes zinc-based chemistry, sourced from Eos Energy Enterprises. Unlike lithium-ion, zinc-based batteries are attracting attention from utilities for their operational safety, supply chain diversity, and performance in multi-hour discharge scenarios. This installation stands as LES’s first utility-scale battery storage venture, reflecting a broader trend among US public power entities to pilot non-lithium chemistries for critical grid applications.
LES reported initial investigations into grid storage solutions began in the late 2010s, but early reviews did not reveal a compelling operational need. The landscape shifted when the microgrid went live in 2020, prompting a clear use case for energy storage to balance supply, protect priority loads, and reduce local peak demand. The technology’s long-duration profile complements the microgrid’s mix of renewables and thermal assets, addressing both reliability and cost control objectives.
This approach helps LES hedge against market volatility triggered by increasingly renewable-heavy portfolios. More than half of LES’s generation now comes from wind and other renewables, and flexible storage is seen as a way to better capture the value of variable generation while safeguarding system stability for mission-critical customers.
Operational role and grid benefits
According to LES, the zinc battery will operate by charging during periods of low electric demand and discharging when load and prices spike. This standard storage strategy reduces peak demand charges and offers operational flexibility for the grid operator to optimize local assets, especially during system stress or market peaks.
The microgrid’s integration with the storage asset delivers backup power during grid outages and enhances system resilience for essential government functions. By dispatching storage at strategic times, LES can better align consumption with renewable output, smoothing variations and enhancing the economic value delivered by existing wind resources.
For the Southwest Power Pool (SPP) market, of which LES is a member since 2009, these assets provide both local and regional benefits. While the substation-level deployment provides resilience for local infrastructure, the participation in SPP allows LES to optimize dispatch and potentially monetize ancillary services, such as fast-response reserves or peak shaving, depending on how regulatory and market frameworks evolve for non-lithium storage.
Procurement and project development
LES executed a competitive procurement process for storage in late 2021, ultimately selecting Eos Energy Enterprises as the technology provider. At the time of contract award, this was the largest battery project in the company’s announced portfolio. Since then, Eos has reported expansion in both manufacturing capacity and gigawatt-scale offtake agreements, signaling growing utility-sector confidence in zinc-based systems.
The LES project is being brought online in phases, with the zinc battery currently in final commissioning and expected to begin commercial operations within weeks of the announcement. The relatively swift execution from procurement to commissioning highlights growing confidence in both the project delivery and the underlying technology’s maturity for grid-connected environments.
As a publicly owned, nonprofit utility, LES is operating the project under a ratepayer-focused mandate, seeking to optimize system costs and deliver stable service for municipal clients and the broader community. The choice of a zinc-based battery, rather than more common lithium-ion, reflects both the unique needs of a critical infrastructure microgrid and a desire to pilot alternatives with specific resilience and safety profiles.
Market context: storage trends and non-lithium adoption
This project is emblematic of trends in the US energy storage industry, as utilities and regional power providers evaluate a portfolio approach to battery chemistry and applications. Current forecasts signal US installations may reach 600 GWh by 2030, with interest expanding beyond grid-scale lithium-ion to include technologies better suited to long-duration, safety-critical, and behind-the-meter deployments.
For large municipal utilities like LES, adopting alternative chemistries helps diversify technology risk and reduce exposure to concentrated lithium supply chains. It also positions operators to be early adopters of storage technologies that may become standard for critical backup or long-duration applications as performance data matures and cost curves decline.
The Lincoln installation provides a relevant case study for grid operators considering non-lithium storage as a way to deliver both operational capacity and resilience for sensitive loads. If performance metrics from this and comparable projects prove favorable, broader adoption by public power entities and regional cooperatives could follow, creating additional demand for zinc and similar technologies in the utility segment.
What this means for buyers
Institutional buyers and developers seeking resilient microgrid solutions for critical infrastructure should watch the operational outcomes of Lincoln’s zinc-based battery system. The project underscores utility willingness to pilot non-lithium technologies in mission-critical applications for flexibility, safety, and supply chain reasons. As more public utilities procure grid-scale storage, competitive procurement and alternative battery chemistries may offer new options for cost control and reliability. Non-lithium storage’s role in capacity stacking and grid resilience is likely to expand as these first projects deliver performance data.
