Beacon Power starts up 8 MW of flywheel energy storage capacity in N.Y.

Tyngsboro, Mass., January 24, 2011 — Beacon Power Corp. energized and interconnected 8 MW of flywheel energy storage and is now earning revenue at its frequency regulation plant in Stephentown, New York.

All interconnection systems between the Stephentown plant and local utility provider NYSEG's substation are operational to enable the full 20 MW plant to come online.

Additional megawatts of energy storage capacity will be progressively energized, thereby increasing the plant's revenue. Beacon's website will be updated to reflect total interconnected capacity. Last month Beacon announced that it was ready to connect a substantial portion of the plant to the grid and was waiting for NYSEG to finish testing the substation.

At full capacity, the company's Stephentown plant will provide 20 MW of regulation service to the New York power grid, or about 10 percent of the state's typical daily demand. Frequency regulation is an essential grid-stabilizing service that is typically performed by slower, less-efficient fossil fuel generators.

Flywheel-based energy storage is proven technology that can provide the same service faster and more effectively, with zero fuel consumption or carbon dioxide emissions. Unlike chemical battery-based systems, the storage capacity of Beacon's kinetic energy flywheel technology does not degrade as a function of charge and discharge cycles, time or temperature.

NYSERDA is supporting Beacon's Stephentown project with a $2 million investment. NYSERDA has invested in a number of energy-storage systems around the state as part of its continued interest in developing a clean-energy economy.

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