Dive Brief:
- AES Energy Storage has launched Advancion, a new modular, lithium-ion battery energy storage product it says can cost-effectively replace some gas-fired peaking plants.
- Advancion gives the company entry to a $30 billion global market for new peaking capacity. In the U.S., coal plant closures and clean-air issues will accelerate opportunities, as Advancion's zero-emissions could replace old fossil-fuel plants needed for reliability in load pockets -- often congested areas where emissions harm air quality. The company is well-positioned to enter the overseas market, too.
- AES Energy Storage says it will sell an installed system for $1 million/MW with a 4-MWh discharge capability, a price that would be "shockingly lower than most industry observers thought possible."
Dive Insight:
AES Energy Storage already is a leader in battery systems to provide frequency regulation on the grid, with more than 100 MW in service in the PJM Interconnection. With a business family of veteran power plant builders, AES has the stature to take on the peaker-substitution play that Advancion can give it.
