June 10 (Reuters) - DTE Energy ( DTE ) said on Monday it

would convert a portion of its shuttered coal power plant at

Trenton Channel, Michigan, into a battery energy storage center.

The diversified energy company said the proposed center

would be completed by 2026 and was expected to be the largest

standalone battery energy storage project in the Great Lakes

region.

WHY IT IS IMPORTANT

In 2022, the U.S. House of Representatives approved

President Joe Biden's $430 billion climate bill, the biggest

environment package in U.S. history meant to touch off a boom in

clean energy development in the country.

The U.S. is set to build a renewable energy capacity of 337

gigawatts by 2028, a 2023 report by International Energy Agency

Renewables says.

CONTEXT

DTE shut the plant in 2022, as part of its plan to meet net

zero carbon emissions.

In November, Michigan established an energy storage standard

with a statewide target of 2,500 megawatts by 2030.

The new facility will store excess electrical energy during

production and distribute it to customers when needed. The

project will reduce strain on the grid and regulate power

generation in sync with fluctuating demand, the company said.

KEY QUOTES

"Today, roughly one-third of all electricity generated by

DTE comes from carbon-free resources," Chief Executive Officer

Jerry Norcia said.

BY THE NUMBERS

The center will store up to 220 megawatts of electricity,

sufficient to power nearly 40,000 homes.

The site's transformation cost will be offset by tax

incentives amounting to $140 million under federal legislation

Inflation Reduction Act and its infrastructure investment

provisions, DTE said.