AES Southland announced today that it has been awarded a 20-year Power
Purchase Agreement (PPA) by Southern California Edison (SCE), to provide
100 MW of interconnected battery-based energy storage, a 200 MW flexible
power resource. This new capacity can deliver 400 MWh of energy and will
be built south of Los Angeles at the Alamitos Power Center in Long
Beach, California.
The scale of this award brings advanced energy storage to a new phase,
recognizing it as a true alternative to a traditional peaking plant.
This selection is an outcome of SCE’s 2013 Local Capacity Requirements
Request For Offer (RFO), a competitive solicitation for new power
capacity in the Western Los Angeles Basin. SCE reported that more than
1,800 offers were submitted, including thermal generation, demand
response, preferred resources and energy storage. This award is an
industry first for the selection of energy storage in a competitive
solicitation with other peak and flexible power capacity alternatives.
“AES is honored to continue more than 25 years of serving SCE and its
customers with cost effective, reliable power solutions,” said Jennifer
Didlo, President of AES Southland. “SCE is taking a strong leadership
step in the industry and we are pleased that AES can be part of ensuring
a clean, secure grid.”
Advanced energy storage was chosen as a cost effective way to ensure
critical power system reliability in the Western Los Angeles Basin. This
award comes as California seeks a variety of new generating resources
and advanced energy solutions to replace the retired San Onofre Nuclear
Generating Station and a number of older natural gas-fired power plants
which will retire to comply with California’s policy on the use of ocean
water for cooling. AES has also been awarded contracts by SCE for new
combined cycle power plants at its existing Huntington Beach and Long
Beach facilities.
“SCE's selection moves California toward a clean, unbreakable power
grid, taking advantage of energy storage for fast, flexible,
emissions-free power,” said John Zahurancik, President of AES Energy
Storage. "This contract marks the emergence of energy storage as a
cost-effective alternative to peaking power plants for local power
capacity and reliability."
SCE and California have taken smart steps to modernize the power system
with a solution that provides unmatched operational flexibility,
enabling the most efficient dispatch of other generating plants, and
lowering cost and emissions, while supporting the on-going addition of
renewable power sources. The project will be ready for commercial
operation in 2021, consistent with the scheduled retirement of older,
existing power plants.
In choosing AES’ AdvancionTM solution for energy storage, SCE
will benefit from the Company’s fourth-generation, complete
battery-based alternative to a peaking power plant. It is built with
pre-qualified battery technology from best in class suppliers and
incorporates AES’ more than five years of commercial experience with
advanced energy storage and more than 30 years of experience in serving
utilities around the world. The resource acts as both generation and
load, enabling more than twice the flexible range of a traditional
peaker plant on the same transmission infrastructure. Advancion is
continuously available, without burning fuel, and is designed as a
scalable resource, offering the ability to grow over time to meet future
power needs.
About AES
The AES Corporation (NYSE:AES) is a Fortune 200 global power company. We
provide affordable, sustainable energy to 20 countries through our
diverse portfolio of distribution businesses as well as thermal and
renewable generation facilities. Our workforce of 17,800 people is
committed to operational excellence and meeting the world’s changing
power needs. Our 2013 revenues were $16 billion and we own and manage
$40 billion in total assets. To learn more, please visit www.aes.com.
Follow AES on Twitter @TheAESCorp.
AES partners with industry leading utilities and power system operators
to reduce costs, improve grid reliability, and achieve environmental
goals using the AdvancionTM energy storage solution. AES
manages the largest fleet of grid batteries in commercial service, with
more than 200 MW of storage resources in operation and construction. The
company has over 1,000 MW in development in the US and abroad. To learn
more, please visit www.aesenergystorage.com or @aes_es on
Twitter.
Safe Harbor Disclosure
This news release contains forward-looking statements within the meaning
of the Securities Act of 1933 and of the Securities Exchange Act of
1934. Forward-looking statements are not intended to be a guarantee of
future results, but instead constitute AES’ current expectations based
on reasonable assumptions.
Actual results could differ materially from those projected in AES’
forward-looking statements due to risks, uncertainties and other
factors. Important factors that could affect actual results are
discussed in the Tender Offer Materials related to the Tender Offers and
AES’ filings with the SEC, including, but not limited to, the risks
discussed under Item 1A “Risk Factors” and Item 7 “Management’s
Discussion & Analysis of Financial Condition and Results of Operations”
in AES’ 2013 Annual Report on Form 10-K and in subsequent reports filed
with the SEC. Readers are encouraged to read AES’ filings to learn more
about the risk factors associated with AES’ business. AES undertakes no
obligation to update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
Anyone who desires a copy of AES’ 2013 Annual Report on Form 10-K dated
February 26, 2014 may obtain a copy (excluding Exhibits) without charge
by addressing a request to the Office of the Corporate Secretary, The
AES Corporation, 4300 Wilson Boulevard, Arlington, Virginia 22203.
Exhibits also may be requested, but a charge equal to the reproduction
cost thereof will be made.
Copyright Business Wire 2014