AES announces 8 MW grid scale battery storage system

Arlington, Va., January 7, 2011 — AES Energy Storage, the owner-operator of advanced storage projects that provide emissions-free grid capacity, announced the commercial operation of an 8 MW battery-based storage system located in Johnson City, New York.

The project is designed to deliver instantaneous response to grid operator requests for power, helping to level the variability of generation and demand on the grid in the New York power market. Upon its anticipated completion in 2011, the full project will supply 20 MW of emissions-free reserve capacity.

On December 31, 2010, the project completed its initial performance testing with the New York Independent System Operator (NYISO) and is operating as a frequency regulation provider, delivering reserve capacity that helps grid operators maintain the balance between generation and load.

The project applies AES Energy Storage’s patented frequency regulation performance algorithm that optimizes the use of energy storage technologies in power markets. In December 2010, AES Energy Storage finalized a $17.1 million loan guarantee from the Department of Energy to support the construction and development of phase two, the addition of the remaining 12 MW in emissions-free capacity to the grid.

As a qualified generator, the project sells regulation service into the power market operated by the NYISO. When fully constructed, the project will be able to charge or discharge up to 20 MW in less than one second in response to automated signaling from the system operator.

With the completion of the first phase of this project, AES Energy Storage has 24 MW of grid-scale storage resources in operation, 100 MW in advanced stage development, and more than 500 MW in the pipeline. Projects in operation include a 12 MW frequency regulation and spinning reserve solution at AES Gener’s Los Andes substation in Chile, which increased power generation by 4 percent.

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