A123 Systems to supply energy storage system to Dongfang Electric Corp.

Waltham, Mass.—July 26, 2011—A123 Systems, a developer and manufacturer of advanced Nanophosphate lithium ion batteries and systems, today announced a contract to supply a 500 kW advanced energy storage solution to Dongfang Electric Corp.

Expected to be installed at DEC's manufacturing facility in Hangzhou city, China Zhejiang Province, by the end of 2011, the system is designed as a demonstration project to help DEC evaluate how advanced energy storage can address the challenges associated with the growth of wind power in China.

This project will be A123's first energy storage system in China, where only about 72 percent of the country's total wind power generating capacity is connected to the power grid, according to data from the China Power Union.

This is largely due to the unacceptable Low Voltage Ride Through capability — during periods of low grid voltage, wind farms are disconnecting and are slow to reconnect when voltage increases — and the general lack of ramp management technology, which results in the inability to predict the output of wind farms and leads to grid instability.

A123's Nanophosphate lithium-ion energy storage systems offer customers a complete solution to improve grid stability and facilitate the integration of renewable energy sources.

The design consists of modular energy storage racks, power electronics and communications and controls software, enabling grid operators to implement a turnkey package for frequency regulation, spinning reserve and other ancillary services.

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