ANTOFAGASTA, Chile and ARLINGTON, Va. – May 3, 2012 – AESGener and AES Energy Storage today announced the commercial operation ofthe second energy storage project in Northern Chile, integrating 20MW of advanced battery-based energy storage with a 544MW thermal power plant.The project is owned by AES Gener, the second largest power generator in the country, and will operate through its subsidiary, Empresa Eléctrica Angamos S.A. (Angamos). AES Energy Storage, a leader in energy storage partnerships,marks another commercial project to employ the company’s advanced reserves product.
This project builds on the success of an initial partnership between the two companies, both subsidiaries of the AES Corporation, to develop a 12MW energy storage system integrated with AES Gener’s Norgener power plant. Located at an electrical substation 172 kilometers from Antofagasta, Chile, theLos Andes Battery Energy Storage System (BESS) has been delivering a similar reliability service since 2009.
“As one of the largest power generators in Chile, we’re consistently looking for ways to unlock value of our existing plants while maintaining gridreliability and flexibility,” said Felipe Ceron, CEO of AES Gener. “Since 2009, we’ve been working with AES Energy Storage to free up generating capacity at our Norgener plant by employing a battery-based installation to meet the power system’s obligations for spinning reserve. That project has been in commercial operation for nearly three years, and we’re now applyingthe service on a larger scale with Angamos.”
Much like a hybrid electric vehicle incorporates a battery component to improve efficiency; combining battery storage with a traditional power plant allows the plant to more effectively use its own generated power while continuing to provide essential spinning reserve services. The advancedreserve capacity provided by the storage technology will enable the Angamos plant to generate an additional 20MW of energy at virtually all times throughout the year, which would otherwise be tied up to maintain the plant’s grid reliability responsibilities in the case of unexpected transmission loss, the failure of a power generator, or another accident that might otherwise necessitate reduced power to customers. As a result, this newly available energy will increase power generation from the Angamos plant by 4 percent.
“The Angamos BESS is a great example of how our advanced reserves producthelps utilities and power companies to get even more out of their criticalassets,” said Chris Shelton, President of AES Energy Storage. “This new unit will allow Northern Chile to improve grid reliability, increase energy efficiency, and create a more sustainable power system.”
Designed, built and operational in just fifteen months, the energy storage system provides superior speed and response to any system reliability event such as loss of transmission, or loss of a power generator. Fast response enables the power system operator to maintain and restore the grid with less shedding of load from customers or other disruptive actions. In 2011, the first 12MW project in Los Andes was noted by the region’s grid operator, CDEC-SING, as one of the best performing reserve units in Northern Chile.
AES Energy Storage worked with AES Gener throughout the design, development, and installation of the Angamos BESS. AES Energy Storage worked with CDEC-SING, AES Gener and its partners to configure the parameters of the advanced reserves product enabling the Angamos BESS tomeet the performance requirements of the electrical system operator andrespond autonomously within established parameters. The advanced reserves product also features system monitoring, SCADA and integration with otheroperational systems to ensure product performance and high reliability.
The Angamos BESS is comprised of approximately one million advanced lithium-ion battery cells, divided between ten 2MW battery containers, and five 4MW power controls containers. A123 Systems supplied the energy storage systems for the project. The power controls modules were provided byABB.
About AES Gener
AES Gener’s principal business is the generation of electricity in the long term, having achieved leadership in Chile based on its installed capacity, diversification and integration of broad business sustainability. At present, AES Gener has total installed capacity of 4,821 MW which includes hydroelectric, coal, natural gas, diesel and biomass plants. In Chile, the Company operates in the Central Interconnected System (SIC) and the Northern Interconnected System (SING), accounting for 21% of the installed capacity in the country. AES Gener also operates in Colombia, through AES Chivor, and Argentina, through TermoAndes S.A. The Company is currently constructing new generation plants (Ventanas IV and Alto Maipo) which will contribute additional capacity of 800 MW to the Chilean electric market and also holds environmental permits for new plants such as Cochrane, Guacolda V and Los Robles. AES Gener has more than 1.100 employees. AES Gener is owned 71% by AES Corp, an international power company with presence in 27 countries.
About AES Energy Storage
AES Energy Storage is a subsidiary of the AES Corporation (NYSE: AES), a company that has served utility customers around the world for 30 years, helping them to deliver safe, reliable power. The company is a leader in commercial energy storage partnerships, which enable utilities, power markets and renewable developers to manage projects from concept to operation. The company’s energy storage products unlock value from existing power infrastructure liberating reserve capacity, enabling renewable facilities to generate new revenue streams, improving flexibility and reliability of the power system, and meeting peak power demand. With 72MW online, AES Energy Storage has the largest fleet of battery-based storage projects in commercial operation today. The company has over 1,000MW in development with partners in the US and abroad. To learn more, please visit www.aesenergystorage.com or on Twitter @aes_es.
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’ 2011 Annual Report on Form 10-K. 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 2011 Annual Report on Form 10-K dated on or about February 24, 2012 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.