Advanced Microgrid Solutions and SunEdison, Inc. have signed a joint development agreement to finance and deliver 50 MW of energy storage for Southern California Edison. Once operational, these AMS projects are expected to be the first storage assets to be acquired by Terraform Power, Inc., a global owner and operator of clean energy power plants.
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.
The AMS-SunEdison partnership combines Advanced Microgrid's 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.