Fluence begins operation with aggressive business plan

Fluence begins operation with aggressive business plan

Fluence begins operation with aggressive business plan Energy Storage Journal

 

Fluence , the energy storage joint venture between Siemens and The AES Corporation, announced the launch of business operations on January 11 with confirmation that it is to supply a 100MW/400MWh lithium ion energy storage system for a US project.

The company is set to begin an aggressive expansion of the business backed by the financial support of the two parent organizations following the receipt of all government approvals and authorizations.

One area of expansion includes the installation of North America’s biggest ESS, a four-hour duration lithium ion system as part of AES’ Alamitos power centre in Long Beach, California serving Southern California Edison and western Los Angeles.

Last July AES closed on a $2 billion financing deal to deliver a 1.294GW combined-cycle gas plant with 100MW of battery storage under a 20-year power purchase agreement contract signed with SCE in 2014.

Under the PPA, all the plants capacity will be sold to SCE in exchange for a fixed monthly capacity fee that covers fixed operating costs, debt service and return on capital.

A second area of expansion is where Fluence will conduct sales, through which Siemens will market and sell Fluence energy storage systems, including Siestorage, Advancion, and the JV’s SunFlex Energy Storage for pairing with solar PV.

The Alamitos scheme adds to the set of projects Fluence will support, either directly or indirectly, including:

  • 40 MW of new storage and 37.5 MW of existing storage for San Diego Gas & Electric.
  • A microgrid project for Italian energy utility Enel on the Mediterranean island of Ventotene.
  • Three projects for Arizona Public Service’s distribution grid, including one in the stead of 20 miles of transmission and distribution poles and wires.
  • Six energy storage projects being installed across Germany, providing key frequency regulation (primary control resource) services for grid stabilization.
  • Two 10 MW projects in the Dominican Republic for AES Dominicana