New Facility Will Provide 100 MW of Interconnected Storage, Equivalent to 200 MW of Flexible ResourceARLINGTON, Va. November 5, 2014 – AES Southland announced today that it has been awarded a 20-year Power Purchase Agreement (PPA) by Southern California Edison (SCE), to provide 100 MW of interconnected battery-based energy storage, a 200 MW flexible power resource. This new capacity can deliver 400 MWh of energy and will be built south of Los Angeles at the Alamitos Power Center in Long Beach, California.
The scale of this award brings advanced energy storage to a new phase, recognizing it as a true alternative to a traditional peaking plant. This selection is an outcome of SCE’s 2013 Local Capacity Requirements Request For Offer (RFO), a competitive solicitation for new power capacity in the Western Los Angeles Basin. SCE reported that more than 1,800 offers were submitted, including thermal generation, demand response, preferred resources and energy storage. This award is an industry first for the selection of energy storage in a competitive solicitation with other peak and flexible power capacity alternatives.
“AES is honored to continue more than 25 years of serving SCE and its customers with cost effective, reliable power solutions,” said Jennifer Didlo, President of AES Southland. “SCE is taking a strong leadership step in the industry and we are pleased that AES can be part of ensuring a clean, secure grid.”
Advanced energy storage was chosen as a cost effective way to ensure critical power system reliability in the Western Los Angeles Basin. This award comes as California seeks a variety of new generating resources and advanced energy solutions to replace the retired San Onofre Nuclear Generating Station and a number of older natural gas-fired power plants which will retire to comply with California’s policy on the use of ocean water for cooling. AES has also been awarded contracts by SCE for new combined cycle power plants at its existing Huntington Beach and Long Beach facilities.
“SCE's selection moves California toward a clean, unbreakable power grid, taking advantage of energy storage for fast, flexible, emissions-free power,” said John Zahurancik, President of AES Energy Storage. "This contract marks the emergence of energy storage as a cost-effective alternative to peaking power plants for local power capacity and reliability."
SCE and California have taken smart steps to modernize the power system with a solution that provides unmatched operational flexibility, enabling the most efficient dispatch of other generating plants, and lowering cost and emissions, while supporting the on-going addition of renewable power sources. The project will be ready for commercial operation in 2021, consistent with the scheduled retirement of older, existing power plants.
In choosing AES’ AdvancionTM solution for energy storage, SCE will benefit from the Company’s fourth-generation, complete battery-based alternative to a peaking power plant. It is built with pre-qualified battery technology from best in class suppliers and incorporates AES’ more than five years of commercial experience with advanced energy storage and more than 30 years of experience in serving utilities around the world. The resource acts as both generation and load, enabling more than twice the flexible range of a traditional peaker plant on the same transmission infrastructure. Advancion is continuously available, without burning fuel, and is designed as a scalable resource, offering the ability to grow over time to meet future power needs.
The AES Corporation (NYSE: AES) is a Fortune 200 global power company. We provide affordable, sustainable energy to 20 countries through our diverse portfolio of distribution businesses as well as thermal and renewable generation facilities. Our workforce of 17,800 people is committed to operational excellence and meeting the world’s changing power needs. Our 2013 revenues were $16 billion and we own and manage $40 billion in total assets. To learn more, please visit www.aes.com. Follow AES on Twitter @TheAESCorp.
AES partners with industry leading utilities and power system operators to reduce costs, improve grid reliability, and achieve environmental goals using the AdvancionTM energy storage solution. AES manages the largest fleet of grid batteries in commercial service, with more than 200 MW of storage resources in operation and construction. The company has over 1,000 MW in development in the US and abroad. To learn more, please visit www.aesenergystorage.com or @aes_es on Twitter.
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