Energy industry sector giants AES Corp. and Siemens AG have decided that one is better than two when it comes to tackling the energy storage market heating up worldwide.
The two companies announced Tuesday they are creating a global joint venture company called Fluence. It will operate independently of its two parent firms and focus on delivering the respective Advancion and Siestorage platforms to more than 160 countries.
“As the energy storage market expands, customers face the challenge of finding a trusted technology partner with an appropriate portfolio and a profound knowledge of the power sector,” Ralf Christian, CEO of Siemens’ Energy Management Division, said in a statement. “Fluence will fill this major gap in the market.”
AES’ Advancion Platform, meanwhile, has deployed more than 200 MW of energy storage in seven countries. It’s collaboration with Indianapolis Power & Light in 2016 was named POWERGRID International’s project of the year for grid optimization.
“Partnering with Siemens to form Fluence will offer both large and small customers the full gamut of proven, state-of-the-art energy storage solutions in over 160 countries,” AES CEO AndrÃ©s Gluski said in the release. “This will accelerate the integration of renewables into the energy network of tomorrow.”
Together, AES’ Energy Storage subsidiary and Siemen’s Energy Management have deployed or been awarded 48 projects totaling 463 MW of battery-based energy storage across 13 nations. One of those is the world’s largest lithium-ion project near San Diego.
San Diego Gas & Electric unveiled the enormous joint venture with AES in February. The 30 MW energy storage facility is cable of storing up to 120 MW hours of energy, the energy equivalent of serving 20,000 customers for four hours.
AES and Siemens each will hold a 50-percent stake in the Fluence joint venture. The new company’s headquarters will be the Washington D.C. area with other offices in Germany and worldwide.
The Fluence transaction is expected to close in the fourth quarter pending regulatory approvals.