DOE Completes $17 Million Loan Guarantee for New York Energy Storage System using Lithium-ion Batteries

Energy Secretary Steven Chu today announced a $17.1 million loan guarantee has been finalized for the AES Westover facility. The loan guarantee will support the construction of a 20 megawatt (MW) energy storage system using advanced lithium-ion batteries. 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.

"The AES project helps reduce carbon emissions and strengthens our energy infrastructure by allowing for more renewable energy sources like solar power and wind energy to contribute to the electrical grid," said Secretary Chu. "Bringing more efficiency and reliability to the grid will help cut costs for consumers and power a cleaner energy future."

"New York should be a hub of green manufacturing and a magnet for the thousands of high tech, good paying jobs that it will bring," said Schumer. "AES’s new facility will, plain and simple, move New York towards that goal"

"This is great news for all of New York State," said U.S. Senator Kirsten Gillibrand. "This project advances cutting-edge, battery technologies that will help reduce our dependence on fossil fuels, improves the efficiency of our energy grid, and spurs job growth in the clean energy economy."

"I am thrilled that AES Energy Storage has secured this critical financing from the Department of Energy’s Loan Guarantee program to support the construction of a new facility in Johnson City," U.S. Representative Maurice D. Hinchey said. "AES is working on cutting edge, clean energy technology that will reduce carbon emissions, create jobs, and eventually reduce energy costs for families and businesses. I congratulate the AES team on securing this award and look forward to working with, and supporting, them as they grow their business."

The AES technology can help reduce carbon emissions by 70 percent compared to frequency regulation provided by fossil energy suppliers. Traditionally, grid frequency regulation, which is needed to balance power generation and consumption on the grid, is maintained by burning additional fossil fuels at power plants. The AES project eliminates the need to burn fossil fuels and instead uses battery technology and new software that will provide the same 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 project will include advanced lithium-ion battery cells from A123 Systems, Inc., a leading supplier of lithium-ion batteries. The contained battery and related electrical systems are assembled, tested and validated in an A123 manufacturing facility in Hopkinton, MA.

The Department of Energy, through the Loan Programs Office, has issued loan guarantees or offered conditional commitments for loan guarantees to support 16 clean energy projects totaling nearly $16.5 billion. Together, the 16 projects will produce over 37 million megawatt-hours, enough clean energy to power over 3.3 million homes.

Other DOE-supported projects include the world’s largest wind farm and the world’s largest Concentrating Solar Power plant.