AES Orders 44MW of Smart Grid Stabilization Systems from A123

AES Corp. (NYSE: AES) has ordered and is deploying 44 megawatts (MW) of A123 Systems’ (Nasdaq: AONE) Smart Grid Stabilization Systems (SGSS) for various new projects—including the DOE-supported energy storage project in Johnson City, N.Y.

These projects, scheduled to be completed by the end of 2011, extend the business relationship established between AES Energy Storage and A123 Systems in 2008 to develop and deploy multi-megawatt energy storage systems.

In 2009, the companies announced the commercial operation of a 12-MW frequency regulation and spinning reserve project using SGSS at AES Gener’s Los Andes substation in the Atacama Desert in Chile, the first energy storage system deployed in the country.

A123’s SGSS technology offers utilities a way to hybridize power plants to increase efficiency, improve grid stability and facilitate the seamless integration of renewable energy sources. The design consists of modular energy storage racks, power electronics and communications and controls software, enabling grid operators to implement a turnkey package for frequency regulation, synchronous reserve and other ancillary services.

To date, A123 has delivered more than 20MW of SGSS units to customers worldwide. A123 says it is the largest producer of lithium ion batteries for ancillary services in the world. This assertion is perhaps evidence that the company is turning its attention away from developing lithium-ion batteries for electric vehicles.

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