Washington D.C., August 4, 2010 — Energy Secretary Steven Chu offered AES Energy Storage, LLC a conditional commitment for a loan guarantee for $17.1 million to support the construction of a 20 MW energy storage system using advanced lithium-ion batteries.
“Effective energy storage systems are crucial to harnessing the power of renewable energy and getting it onto the grid,” said Secretary Chu. “Projects like these are helping us to meet the president’s goal of doubling our renewable energy generating capacity by 2012.”
Traditionally, grid frequency regulation, which is needed to balance power generation and consumption on the grid, is maintained by burning additional fossil fuels at power plants.
The AES project eliminates the need to burn fossil fuels and instead uses battery technology and new software that will provide the same regulation at a lower price.
This advanced frequency regulation capability will allow renewable electricity generation to play a larger role in New York’s transmission network. The AES technology can help reduce carbon emissions by 70 percent compared to frequency regulation provided by fossil energy suppliers.
The AES project will include advanced lithium-ion battery cells from A123System, Inc., a leading supplier of lithium-ion batteries that provide grid stabilization more efficiently and with less environmental impact than existing resources. The contained battery and related electrical systems are assembled, tested and validated in an A123 manufacturing facility in Hopkinton, Mass.