AES Installs A123 Energy Storage System in Chile

AES
Energy Storage and A123 Systems (Nasdaq: AONE) announced the commercial operation of a 12-MW
frequency regulation and spinning reserve project at AES Gener’s Los Andes substation
in the Atacama Desert, Chile.

AES Energy Storage
and AES Gener are both subsidiaries of The AES Corporation (NYSE: AES) (www.aes.com). 

The project will help improve
the reliability of the electric grid in Northern Chile and uses A123 Systems’ Hybrid
Ancillary Power Units (Hybrid-APU™), a lithium-ion battery system.

The project helps the system operator manage fluctuations in demand, delivering
frequency regulation in a less expensive, more responsive and more accurate manner
than traditional methods.

In addition, because the project replaces unpaid reserve from
the power plant, AES Gener can receive payment for its full output capacity by selling
directly to the electric grid.

Chris Shelton, President of AES Energy Storage, said, “This approach to providing
ancillary services and grid reserves lowers the cost and improves the performance of
power systems. The project in Chile builds on the progress of our demonstration projects
in the U.S., and we believe that battery systems have the potential to support greater
integration of renewable energy sources.”

Robert Johnson, Vice President of the Energy Solutions Group for A123 Systems, stated,
“We believe that in addition to creating a more efficient power facility and electric grid in
Chile today, A123’s Hybrid-APU advanced capabilities can be extended to allow greater
use of renewable energy sources, such as wind and solar. This project demonstrates the
flexibility of our battery technology to provide a scalable solution for rapid deployment to
the grid, utilizing the same core technology employed in hybrid and electric vehicle
battery systems.”

AES has been working with A123
Systems since 2008 to develop grid applications for regional transmission operators in
order to improve the capacity, responsiveness, and efficiency of power systems.
This is AES Energy Storage’s first project outside the U.S. and is also the first lithium-ion
battery system to be deployed to the electric grid in Chile.

In 2008 AES and another
supplier deployed a 1 MW Ancillary Services unit to PJM to provide ancillary services.
Earlier this year AES and A123 Systems installed a 2 MW Hybrid-APU™ at one of AES’
Southern California power plants to help meet reserve requirements.

Headquartered in Massachusetts and founded in 2001, A123 was funded
initially with a $100,000 grant from the U.S. Department of Energy and went public in September of this year.

Website: http://www.a123systems.com     
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