DOE Offers $17 Million Loan for Battery Energy Storage in New York State
On August 2, DOE offered AES Energy Storage, LLC a conditional commitment for a loan guarantee for $17.1 million to support the construction of a 20-megawatt (MW) energy storage system using advanced lithium-ion batteries. This is the first battery-based energy storage system offered a loan guarantee by DOE. The AES project, located in Johnson City, New York, will help provide a more stable and efficient electrical grid for the state's high-voltage transmission network.
Power plants typically maintain the "grid frequency regulation" needed to balance generation and consumption by burning more fossil fuels. The AES project eliminates this need to burn fossil fuels by using battery technology and new software to provide the same grid frequency regulation at a lower price. This advanced frequency regulation capability will allow renewable electricity generation to play a larger role in New York's transmission network. The AES technology can help reduce carbon emissions by 70% compared to frequency regulation provided by fossil energy suppliers. DOE has now offered conditional commitments for loan guarantees to support 14 clean energy projects. See the DOE press release and the DOE Loan Guarantee Program Web site.