DOE offers $17m loan for New York energy storage project

August 3, 2010

The US Department of Energy has offered a $17 million conditional loan guarantee to support a 20-megawatt energy storage project in New York State.

AES Energy Storage is developing a facility at the AES coal power station site near Union Town and Johnson City, NY, using advanced lithium-ion batteries to provide a more stable and efficient grid system for the state.

Project Dyno, as it is called, will use battery cells made in Massachusetts by A123System, Inc.

It will mean extra energy needed to balance spikes in demand in the New York transmission system could be provided from stored energy, rather than by bringing online extra fossil fuel power capacity.

It is expected to provide frequency regulation at a lower price, cutting emissions by 70% compared to the equivalent fossil fuel powered system balancing.

Energy storage systems are crucial to harnessing the power of renewable energy” – Energy Secretary Steven Chu

The loan guarantee was one of 14 awarded today, as the Department seeks to support new technologies to reduce air pollution and greenhouse gas emissions.

“Effective energy storage systems are crucial to harnessing the power of renewable energy and getting it onto the grid,” said US Energy Secretary Steven Chu. “Projects like these are helping us to meet the President’s goal of doubling our renewable energy generating capacity by 2012.”

Dyno

Project Dyno is set to include 10 units of battery systems, each rated at 2MW, which together will be able to release up to 20MW output in an instant, or 5MW per hour.

Those behind the project also believe it will help more renewable energy sources play a role in supplying power to the state of New York, with the smart grid technology able to balance out intermittent supplies of wind or solar power.

“A smart electric grid is a win-win for New York consumers and the environment,” said Senator Kristen Gillibrand, a member of the Senate Environment and Public Works Committee.

“As we transition to clean energy production, we need to have infrastructure in place like a battery-based energy storage system. New York is leading the way by building on clean energy investments they have already made. These federal dollars would help fuel the new economy, creating good paying, green jobs right here in New York.”