Ideal Power and EnerDel Sign Strategic Alliance Agreement for MHPS

September 09, 2014 by Jeff Shepard

Ideal Power Inc. and EnerDel, Inc., a manufacturer of advanced, lithium-ion batteries and energy storage systems for electric grid, transportation and industrial applications, announced that they have signed a strategic alliance agreement. EnerDel is developing a new line of Mobile Hybrid Power Systems (MHPS) that will integrate Ideal Power's 30kW hybrid converter, EnerDel's lithium-ion batteries, and proprietary control systems with a diesel generator. EnerDel's new third-generation MHPS is designed for both remote and grid-tied microgrid applications that depend on diesel generators as the primary power source and is expected to be commercially available later this year.

EnerDel’s second-generation MHPS offers up to a 70% reduction in diesel fuel consumption compared to stand-alone generators, and has been tested by the United States Army Corps of Engineers’ Engineer Research and Development Center (USACE-ERDC) in Champaign, Illinois. EnerDel expects its third-generation MHPS to further reduce diesel consumption and costs, while offering other benefits to commercial, industrial, utility and government customers. The new MHPS will be a family of modular products starting from a 30kW - 40kWh base system sold by EnerDel worldwide.

“EnerDel established a strategic alliance with Ideal Power for their innovative hybrid converter products, which we expect to improve efficiency, size, weight, cost and flexibility of our Mobile Hybrid Power Systems,” stated Michael Canada, Chief Executive Officer, EnerDel. “We have tested Ideal Power’s hybrid converter product and it has exceeded our performance expectations. Our third-generation MHPS products with Ideal Power will be available in a family of modular 30kW MHPS products with both trailer and skid mounted options.”

The International Energy Agency (IEA) estimates developing countries will need to double their electrical power output by 2020. Demand for energy, especially electricity, is growing rapidly in developing economies - faster than the rate of expansion of conventional electricity grids in industrialized countries. Navigant Research forecasts that 80 percent of total growth in energy production consumption by 2035 will be in developing nations, and suggests that microgrids will be the primary generation source to support this growing electricity demand. They forecast worldwide capacity of energy storage systems for microgrids will grow from 817 MWh in 2014 to 15,182 MWh by 2024.

Today, diesel generators are the primary electrical generation source for remote microgrids. Adding energy storage is expected to dramatically reduce the use of expensive diesel fuel, improve microgrid system efficiency, and improve the integration of intermittent renewable energy sources . A 70 percent reduction in diesel fuel consumption is expected to be achieved by integrating batteries with remotely located diesel generators and even further fuel reductions may be obtained by adding photovoltaics to the energy mix. EnerDel expects a 2-year payback period on its MHPS in initial applications largely due to cost savings on fuel purchases and fuel delivery expenses.

Dan Brdar, Chief Executive Officer of Ideal Power commented by saying, “We are pleased to be an integral part of EnerDel’s innovative solution of combining low cost batteries and diesel generators to dramatically improve the economics of small diesel generators. This opens significant new markets for our products such as islands, remote communities, mining and defense applications that are dependent on expensive diesel fuel for electricity.”