IPL Breaks Ground on First Utility Scale Battery Storage Project in MISO

Celebration includes recognition of IPL’s Renewable Energy Production pilot program

INDIANAPOLIS, In. July 8, 2015 — Indianapolis Power & Light Company (IPL), a subsidiary of The AES Corporation (NYSE: AES), broke ground today on an advanced battery-based energy storage facility, which will improve reliability and lower costs for its customers. The IPL AdvancionTM Energy Storage Array will be the first grid-scale storage system in the 15-state Midcontinent Independent System Operator (MISO) grid system. The facility will provide 20 MW of interconnected energy storage, equivalent to 40 MW of flexible resource. In attendance were Governor Mike Pence, Mayor Greg Ballard and AES and IPL leaders.

“IPL continues to transform its generation fleet, and we are excited to add this innovative technology to help meet the peak power needs of our customers,” said Ken Zagzebski, President of AES United States. “Energy storage will provide IPL customers with safe, reliable, cost-effective, and emissions-free power.”

Energy storage is part of IPL’s plans to meet the growing needs of its customers. With all coal units at Harding Street Station set to convert to natural gas, pending approval from the Indiana Utility Regulatory Commission, and with the addition of energy storage at the site, IPL has taken significant steps to modernize its generation fleet. IPL continues to pursue a balanced generation portfolio that includes coal, oil, gas, wind and solar. By 2017, IPL’s generation resources will include 45 percent natural gas, 44 percent coal and 10 percent wind and solar.

“Energy affordability and reliability are top priorities for Hoosiers,” said Governor Mike Pence. “Energy powers an Indiana economy that’s attracting business growth and building a workforce at near historic levels. Working with utilities like IPL, we’re committed to making Indiana the top state in the nation for energizing job creation.”

IPL’s parent company, AES, is a world leader in grid-scale energy storage. AES pioneered the use of grid-connected lithium-ion batteries during a project in Indianapolis in 2008. Globally, AES has 86 MW of energy storage projects in commercial operation and has announced 260 MW of interconnected battery-based storage, equivalent to 520 MW of flexible power resource, in construction or late-stage development. Construction on the IPL array will begin immediately, with the facility expected to come on-line in the first half of 2016. The facility will provide unmatched operational flexibility, will lower costs and emissions by enabling more efficient dispatch of existing generating assets, and will support the ongoing integration of renewable power sources.
Today, IPL also celebrated its Rate Renewable Energy Production pilot program, which authorized IPL to purchase renewable energy produced by wind, solar and biomass generated by customers’ projects connected to IPL’s distribution system. This successful program has led to Indianapolis being ranked #2 in the United States for solar PV per capita. To-date, more than 30 projects have been completed and IPL is poised to add nearly 100 MW of capacity to the grid once all projects are complete.

More information on IPL’s future plans and diverse portfolio can be found by going to IPLpower.com.

About Indianapolis Power & Light Company and AES. Indianapolis Power & Light Company (IPL), an AES Company, provides retail electric service to more than 480,000 residential, commercial and industrial customers in Indianapolis, as well as portions of other Central Indiana communities surrounding Marion County. During its long history, IPL has supplied its customers with some of the lowest-cost, most reliable power in the country. For more information about the company, please visit www.IPLpower.com or connect with us at www.twitter.com/IPLpower, www.facebook.com/IPLpower or www.linkedin.com/company/IPLpower.

The AES Corporation (NYSE: AES) is a Fortune 200 global power company. We provide affordable, sustainable energy to 18 countries through a diverse portfolio of distribution businesses as well as thermal and renewable generation facilities. Our workforce of 18,500 people is committed to operational excellence and meeting the world’s changing power needs. AES’ 2014 revenues were $17 billion, and we own and manage $39 billion in total assets. To learn more, please visit www.aes.com. Follow AES on Twitter @TheAESCorp.