Advanced Microgrid Solutions developing storage projects for acquisition by TerraForm Power yieldco
Written By: Tracy Dawson Roses
July 15, 2015
On July 15, Advanced Microgrid Solutions, a developer of customer-sited energy storage systems and SunEdison, Inc announced they have signed a joint development agreement to finance and deliver 50 megawatts of energy storage for Southern California Edison under long-term capacity contracts. Once operational, these AMS projects are expected to be the first storage assets to be acquired by Terraform Power, Inc. (Nasdaq: TERP), a global owner and operator of clean energy power plants.
The storage system contracts were awarded to AMS as part of SCE’s 2013 Local Capacity Requirement solicitation, and will be built on commercial and industrial customer sites throughout the West Los Angeles Basin.
SCE will purchase capacity from the storage systems under a 10-year capacity contract, and expects to use the electricity stored in these fleets of hybrid-electric buildings in part to offset the power once produced by the decommissioned San Onofre nuclear power plant and other soon-to-be retired gas-fired plants. This program is part of SCE’s plan to modernize the grid by adding 2.2 gigawatts of newer, cleaner resources including energy storage and renewables by 2022.
The AMS-SunEdison partnership combines Advanced Microgrid’s innovative designs and technology partnerships with SunEdison’s development and financing expertise. The first fleet of energy storage systems is expected to begin commercial operation in 2016 in Irvine, California.
Carlos Domenech, TerraForm Power’s chief executive officer remarked:
“We are excited to be expanding our clean energy portfolio with a new asset type that provides both attractive returns and strong growth prospects,” said. “TerraForm Power anticipates acquiring these systems once operational, making them the first storage projects in our fleet. These systems fit well with our contracted clean power generation fleet, as they have long term capacity contracts with SCE, a leading utility and customer with a strong balance sheet and credit rating.”