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AES Energy Storage Targets $30B Peak Power Substitution Market

Greentech Media  |  April 1, 2014

Peak power substitution involves the use of storage to replace simple cycle gas-fired “peaker” plants. In March 2014, AES Energy Storage launched a new modular energy storage solution capable of cost-effectively replacing some peak power plants. Called Advancion, AES’ solution uses lithium-ion batteries.

On a global basis, about 30 gigawatts of new peaking capacity are added each year to keep up with population growth and increasing electricity demand. At an average cost of $1 million per megawatt for a gas-fired peaker, AES Energy Storage can now penetrate a $30 billion annual global market. Coal plant closures will further accelerate market opportunities for Advancion, which is aimed at replacing old fossil plants that primarily provide reliability in city load pockets. These plants are often located in inner cities where there is an air emissions compliance issue. Substituting zero-emissions energy storage is ideal in those locations. ...