AES Reveals AdvancionTM 4 with First Commercial Deployment

The AES Corporation (NYSE: AES) today announced the first deployment of Advancion^TM 4, the next generation of battery-based energy storage, at the Warrior Run facility in Cumberland, Maryland. Advancion is a complete, battery-based alternative to peaking power plants that provides a dependable, smart and cost-competitive means to modernize power systems.

Advancion 4 is among the most proven energy storage platforms available, resulting from AES’ more than eight years of commercial experience operating grid-connected energy storage. This latest design includes improvements in the architecture that provide the highest levels of reliability, upgrades to the already proven controls platform, and a modular design to drive down the upfront and on-going costs of these advanced storage assets for customers.

“With the addition of the Warrior Run Advancion Energy Storage Array, we now have 64 MW of interconnected energy storage in PJM,” said Ken Zagzebski, President of AES’ US Strategic Business Unit. “We continue to see energy storage as an important innovative technology for serving our customers with safe, reliabile, cost effective and emission free power.”

“Advancion 4 was developed to address the challenges faced in owning and operating the largest fleet of advanced battery-based energy storage projects,” said John Zahurancik, President of AES Energy Storage. “AES has a history of providing our customers with innovative solutions, and Advancion 4 raises the bar, as it delivers the highest reliability, has the lowest total cost of ownership, and is available to utilities, developers and power system operators to own directly or through a managed service contract.”

Key Features of Advancion 4 include:

• Modular, Compact Advancion Array – The Advancion 4 Array now has an industry-leading compact footprint and optimized design that is five times denser than prior installations, further reducing the total installed cost by requiring less space and balance of system costs. Advancion 4 arrays are engineered to accommodate interchangeable supplier components. These suppliers build to meet Advancion design specifications to avoid costly, per project system integration and are pre-qualified through AES’ Advancion Supplier Certification Program. A select group of high quality component suppliers have already been certified and the group represents more than half of the global advanced battery production. The modular architecture enables replacement and augmentation over the system life using the best new technologies at the best future price.
• Introducing the Advancion Node – The new Advancion Node is the smaller, more manageable building block for Advancion Arrays. These independent, modular units incorporate pre-certified batteries and inverters, with AES controls, and are architected in a massively parallel design – offering customers the highest level of reliability and availability, similar to the world’s best datacenter systems. The scaleable design allows for standard configurations from 100 kW to over 1,000 MW, and from 15-minutes of duration to over four hours without any reengineering.
• The Next Generation Advancion Digital Control System (DCS) – The addition of the node architecture to AES’ patented control platform provides owners with unprecedented control of the asset, to maximize revenue and reduce operating costs. Advancion-based solutions now monitor, record and analyze thousands of individual points within the system to tune performance – all protected within a robust cybersecurity framework. For example, the Warrior Run installation regularly measures and records nearly 80,000 separate data points, representing more than two terrabytes of data per year. This node-level control makes it possible for parts of the same array, or several distributed arrays, to do mix and match applications and to load balance service requirements (e.g. regulation, reserves, renewable ramping, energy delivery, voltage control, etc.), optimizing the operation of the asset.

“The Advancion 4 energy storage solution is a unique combination of market-tested controls and a massively parallel design architecture, incorporating best in class technology components. Every aspect has been developed to meet the needs of a long-term power asset owner-operator,” said Brett Galura, Vice President of Solution Development for AES Energy Storage. “We are especially pleased to work with our initial certified suppliers, LG Chem and Parker Hannifin, in this first commercial deployment of Advancion 4.”

The Warrior Run Advancion Energy Storage Array is the largest grid-scale battery, and one of the largest green technology projects, in Maryland, providing 10 MW of interconnected energy storage, equivalent to 20 MW of flexible resource. Warrior Run will provide critical grid stability services in the form of frequency regulation service to the PJM Interconnection, which controls the power grid for more than 61 million people.

AES has a total of 384 MW of interconnected energy storage, equivalent to 768 MW of flexible resource, in operation, construction or late stage development in six countries. AES has accumulated nearly three million megawatt-hours of delivered service on its advanced energy storage platform.

About AES Energy Storage Solutions

AES is a leader in commercial energy storage solutions, which improve flexibility and reliability of the power system, and provide customers with a complete alternative to traditional peaking power plants. The company’s Advancion^TM 4.0 energy storage solution is available to leading utilities, power markets, and independent power producers, and is AES can manage projects from concept to operation with a market-proven solution. AES introduced the first grid-scale advanced battery in commercial power market service in 2008 and operates the largest fleet of battery-based storage assets in service today. The company works with utility partners and other customers to deliver the value of advanced storage in the US and around the world. To learn more, please visit www.aesenergystorage.com or @aes_es on Twitter.

About AES

The AES Corporation (NYSE:AES) is a Fortune 200 global power company. We provide affordable, sustainable energy to 18 countries through our diverse portfolio of distribution businesses as well as thermal and renewable generation facilities. Our workforce of 18,500 people is committed to operational excellence and meeting the world’s changing power needs. Our 2014 revenues were $17 billion and we own and manage $39 billion in total assets. To learn more, please visit www.aes.com. Follow AES on Twitter @TheAESCorp.

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. Such forward-looking statements include, but are not limited to, those related to future earnings, growth and financial and operating performance. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES’ current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to, our accurate projections of future interest rates, commodity price and foreign currency pricing, continued normal levels of operating performance and electricity volume at our distribution companies and operational performance at our generation businesses consistent with historical levels, as well as achievements of planned productivity improvements and incremental growth investments at normalized investment levels and rates of return consistent with prior experience.

Actual results could differ materially from those projected in our forward-looking statements due to risks, uncertainties and other factors. Important factors that could affect actual results are discussed in AES’ filings with the Securities and Exchange Commission (the “SEC”), including, but not limited to, the risks discussed under Item 1A “Risk Factors” and Item 7: Management’s Discussion & Analysis in AES’ 2014 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.

Any Stockholder who desires a copy of the Company’s 2014 Annual Report on Form 10-K dated on or about February 25, 2015 with the SEC 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. A copy of the Form 10-K may be obtained by visiting the Company’s website at www.aes.com.

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