News

50MW of Energy Storage for Southern California Edison

July 19, 2015 by Jeff Shepard

Advanced Microgrid Solutions (AMS), a developer of customer-sited energy storage systems that create Hybrid-Electric Buildings™, and SunEdison, Inc. today announced they have signed a joint development agreement to finance and deliver 50 megawatts of energy storage for Southern California Edison (SCE) under long-term capacity contracts. Once operational, these AMS projects are expected to be the first storage assets to be acquired by Terraform Power, Inc..

The storage system contracts were awarded to AMS as part of SCE's 2013 Local Capacity Requirement solicitation, and will be built on commercial and industrial customer sites throughout the West Los Angeles Basin.

SCE will purchase capacity from the storage systems under a 10-year capacity contract, and expects to use the electricity stored in these fleets of hybrid-electric buildings in part to offset the power once produced by the decommissioned San Onofre nuclear power plant and other soon-to-be retired gas-fired plants. This program is part of SCE's plan to modernize the grid by adding 2.2 gigawatts of newer, cleaner resources including energy storage and renewables by 2022.

Battery storage offers several benefits over traditional power sources: it is cleaner, responds faster, can be located directly at load centers and is increasingly less expensive than other options for tackling peak electricity demand.

"We're enthusiastic about working with SunEdison as our development and financing partner to deliver these innovative solutions to our host customers and SCE," said Susan Kennedy, Advanced Microgrid Solutions chief executive officer. "We are creating the future of the energy grid."

"SunEdison is excited to be working with both Advanced Microgrid Solutions and SCE to integrate today's leading-edge technology into the energy grid," said Tim Derrick, SunEdison general manager of Advanced Solutions. "AMS' energy storage solutions are truly ground-breaking. With these systems, the utility will for the first time be tapping into energy stored by its own customers to provide grid support during times of high demand. SCE deserves great credit for being the first utility to issue local capacity contracts for behind-the-meter, aggregated battery storage."

The AMS-SunEdison partnership combines Advanced Microgrid's innovative designs and technology partnerships with SunEdison's development and financing expertise. The first fleet of energy storage systems is expected to begin commercial operation in 2016 in Irvine, California.

"We are excited to be expanding our clean energy portfolio with a new asset type that provides both attractive returns and strong growth prospects," said Carlos Domenech, TerraForm Power's chief executive officer. "TerraForm Power anticipates acquiring these systems once operational, making them the first storage projects in our fleet. These systems fit well with our contracted clean power generation fleet, as they have long term capacity contracts with SCE, a leading utility and customer with a strong balance sheet and credit rating."