San Miguel Power Builds 1500 kWh Microgrid Rico Outages

San Miguel Power Association (SMPA) is building a 1,500 kWh battery energy storage microgrid to protect the town of Rico, Colorado, from extended winter power outages. The project, funded by a $1.4 million grant from the Colorado Department of Local Affairs, will provide 4 to 6 hours of backup power for 350 residents, including a fire station, municipal buildings, and essential services.

Technical Configuration

The microgrid was originally sized at 1,320 kWh but SMPA increased capacity to 1,500 kWh for future load growth. The system serves as an alternative to undergrounding overhead distribution lines, prohibitively expensive in Rico’s mountainous terrain at elevations above 8,800 feet. Rico’s single radial feed makes it vulnerable to outages from avalanches, ice storms, and heavy snow loads. Rico School was selected as the installation site by the Town Board of Trustees in September 2025.

Broader Resilience Strategy

The Rico project is part of SMPA’s multi-community microgrid initiative targeting Ophir (population 195), Silverton, and Ridgway (1,200+ residents). Colorado’s Microgrids for Community Resilience Program awarded the $1.4 million grant with a requirement that SMPA spend half by June 2026. The Colorado Energy Office’s January 2025 Microgrid Roadmap identified rural cooperative territories as priority deployment zones. Construction is planned for 2026, with the system designed to island the entire Rico load independently.

Critical Analysis

The 1500 kWh BESS at Rico uses bidirectional inverters subject to IEEE 1547-2018 Section 6.5.1 intentional islanding requirements, maintaining voltage within plus or minus 5 percent nominal during island-mode transitions. Islanding removes 350 residential loads and critical facilities from the radial circuit, eliminating emergency switching through avalanche-prone terrain.

5-Year Projection

By 2031, operational data from facilities like this will become the standard requirement for securing interconnection agreements, as ISOs prioritize proven Battery Energy Storage profiles.

Critical Perspective

The 1.4 million dollar grant for a 1,500 kWh battery microgrid in Rico presents a cost of approximately $933 per kWh. This figure contrasts with typical utility-scale battery projects that range from $200 to $300 per kWh. The stated 4-6 hour backup capacity for the town of Rico, with a population of approximately 350, warrants scrutiny, particularly concerning winter heating loads. Rico’s reliance on a single 25-mile radial feeder line from Norwood means the microgrid addresses outage duration but not the inherent lack of redundancy in the existing infrastructure. Further information regarding operations and maintenance funding beyond the initial grant period is needed.

Why It Matters

San Miguel Power Association’s (SMPA) microgrid development in Rico, Silverton, and Ridgway offers a potential model for other remote mountain communities. The Silverton microgrid, completed at a cost of 2.4 million dollars, demonstrates the feasibility of such projects. These microgrids hold implications for disaster resilience, especially in areas prone to outages from events like avalanches, mudslides, and equipment failures, as experienced by Rico. The scale of SMPA’s service area, covering 1,700 square miles and serving 11,000 meters, highlights the potential for replication across Colorado’s remote mountain communities.

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