AES Marks Milestone in Energy Storage as Project Outperforms Existing Reserve Units
Success leads to additional 20MW for Northern Chile
SANTIAGO, Chile and ARLINGTON, Va. – June 7, 2011 – AES Energy Storage and AES Gener today announced that the Los Andes battery energy storage system is one of the best performing reserve units in Northern Chile, according to reports issued by CDEC-SING, the region’s grid operator. Located at AES Gener’s Los Andes substation, the 12MW energy storage system delivers Capacity Release for Power Generators, a service developed by AES Energy Storage to enable a battery based installation to meet system obligations for spinning reserve, allowing power generators to produce – and sell – power previously required to be held in reserve.
Performing continuously for more than eighteen months as a critical reserve unit for Chile’s Northern Grid, CDEC-SING reports that the project is the only reserve unit that has responded to all generator assisted fault restorations since January 2010. During this time it has demonstrated a response speed consistently higher than others units, while continuously overachieving in delivering the committed level of response. In addition to fast and accurate response times benefitting the grid, the project has allowed AES Gener to increase power generation from its Norgener plant by 4 percent.
“This project has been effective in improving the efficiency and reliability of the power grid in Northern Chile, allowing our Norgener plant to generate more electricity for this important industrial region,” said Javier Giorgio, Vice President Operations of AES Gener. “We are excited to continue our work with AES Energy Storage to add similar projects to our portfolio, helping to improve plant efficiency, enable optimal operation, and deliver power for system operator requests nearly instantaneously.”
In May 2011, AES Gener and AES Energy Storage began construction on another 20MW project in Northern Chile that will deliver the same service. AES Energy Storage will develop the system and implement it in cooperation with Empresa Eléctrica Angamos SA (Angamos), a subsidiary of AES Gener. Located near a new Angamos thermal power plant, the system will increase AES Gener’s storage capacity from 12MW to 32MW and allow the Angamos plant to more effectively use its generating capability while still providing critical spinning reserve services to the northern grid. The system has been approved and is expected to begin operations in the fourth quarter of 2011.
“We’re pleased to expand our work with AES Gener to include an additional 20MW of reserve capacity, improving the reliability of the power grid in the region,” said Chris Shelton, President of AES Energy Storage. “The superior performance reported by the system operator of the first 12MW project highlights the value of energy storage technology to provide this service. We continue to expand our role in helping generators and utilities develop, construct and operate these types of facilities.”
About AES Gener
AES Gener SA is a Chile-based company engaged in electric power generation. The Company's subsidiaries and affiliate companies are also engaged in the supply to the national grid: Sociedad Electrica Santiago SA, that operates a combined-cycle gas turbine; Empresa Electrica Guacolda SA, which controls one coal-powered station and Energia Verde SA, which serves the network with two cogeneration plants and a gas turbine. Through Norgener SA the Company is active in the Norte Grande region and Termoandes SA operates a natural gas generator plant in Salta, Argentina, that is also connected to the Norte Grande grid. Also, in the Norte Grande region is the Angamos thermo plant in commissioning, this project entails the operation of two 259MW thermo generators with a combined capacity of 518MW. The plant will run on solid fuel (bituminous and sub-bituminous coal, with fuel oil as back-up fuel). The Company also holds such subsidiaries as Energy Trade and Finance Corp, Gener Argentina SA and Energen SA. The Company's majority shareholder is Inversiones Cachagua Ltda with 70.67% interest.
About AES Energy Storage
AES Energy Storage, a subsidiary of The AES Corporation (NYSE: AES), is the owner-operator of advanced storage projects that provide emissions-free capacity to improve the performance and reliability of today’s power grid. Emissions-free capacity is a fast and flexible power system resource, combining patented software, dynamic power control and storage technology. AES Energy Storage deploys and operates grid-scale storage projects to help utilities, power markets and renewable developers level the variability of generation and demand on the grid, reduce operating costs, and meet future power system needs. AES Energy Storage has 80MW of storage projects in operation or construction, and more than 500MW in development, including projects in Chile, New York, and West Virginia. To learn more, please visit www.aesenergystorage.com.
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, including, but not limited to, the risks discussed under Item 1A “Risk Factors” in AES’ 2010 Annual Report on Form 10-K and the Form 10-Q for the quarter ended March 31, 2011. 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 2010 Annual Report on Form 10-K dated on or about February 25, 2011 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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