AES subsidiary sells energy storage arrays to San Diego Gas and Electric

AES Energy Storage, a subsidiary of Arlington-based  AES Corp., has entered into two contracts with San Diego Gas and Electric (SDG&E) for two energy storage arrays totaling 37.5 megawatts.

Financial details on the contracts were not disclosed.

The contracts involves AES’ Advancion  energy storage solution, a battery-based energy storage platform, installed at sites in San Diego County, Calif.

AES said that, when they become operational by the end of January 2017, the storage arrays will help SDG&E to improve regional reliability and integrate greater amounts of renewable energy.

“We are excited that SDG&E has selected AES’ Advancion energy storage solution to help meet peak demand and ensure the reliability of the electric grid in Southern California,” Andrés Gluski, AES president and CEO, said in a statement. “AES recently made Advancion available to utilities, developers and commercial customers interested in owning our innovative and scalable solution, and SDG&E’s selection of Advancion highlights the significant growth potential we see for our energy storage business.”

The SDG&E arrays will be able to provide 37.5 megawatts of power for four hours and serve as a 75-megawatt flexible resource to the grid.

The arrays will be installed at two SDG&E substation facilities: 30 megawatts in Escondido and 7.5 megawatts in El Cajon.

Once completed, the Escondido array will be the largest battery-based energy storage project in operation in the United States.

AES has been deploying advanced battery-based energy storage onto electric grids since 2008, including recent installations in the United States, Northern Ireland and the Netherlands.