Leclanché, a global and vertically integrated battery energy storage solution maker, was picked by Swiss Green Electricity Management Group (SGEM) to serve as the engineering, procurement and construction (EPC) contractor – and battery energy storage system supplier – for the Marengo project in the PJM market. The storage firm in August signed a preferred partnership agreement with SGEM, an independent owner and operator of energy storage assets, it said Tuesday.
Marengo is a 20 MW/10 MWH, grid-scale, energy storage project and is among the largest, fully commercial battery storage projects in North America, Leclanché said. This project is the firm's first in the US, after reportedly a project win in Canada earlier this year and it strengthens the firm's presence in North America, it added.
The Marengo plant will be interconnected to the local Commonwealth Edison grid and will provide real-time frequency regulation service to PJM. The facility will respond almost instantly to the continually changing needs of the grid, providing real-time frequency regulation and allowing PJM to deliver higher quality reliable electrical service at a lower cost to its end-users in 13 states and the District of Columbia.
The project was developed by GlidePath Power, a leading developer of advanced energy solutions, which reportedly recently sold three similar projects to British power producer RES and French utility EDF.
The increasing share of renewable energy in the electricity mix poses substantial challenges to grid stability, Leclanché said. As a direct result, demand for frequency regulation is growing considerably.
The deployment of battery energy storage systems is the lowest-cost solution to support grid operators in their efforts to reduce and defer their investments into T&D infrastructure upgrades, it added.
SGEM provides equity capital, leads project finance and supervises the construction and operation of energy storage infrastructure assets to deliver optimum, risk-adjusted returns to its investors, the firm said. It invests in energy storage projects on a build-own-operate model and under its partnership with Leclanché, SGEM enjoys the right-of-first-offer for all qualified projects of the firm – which represent over 85 MWH in 2017, it added.
"SGEM's financial resources and Leclanché's technology and expertise as a turnkey EPC contractor were critical to making the Marengo project a reality," said Dan Foley, CEO and founder of GlidePath in prepared remarks. "We are looking forward to working again with Leclanché as we focus on developing new projects that provide reliable electricity to the grid and end-users."
"This will be our first participation in the well-structured and dynamic PJM energy storage market – and the Marengo Project offers SGEM investors the opportunity to provide a long-term commitment to this fast-growing infrastructure asset class," said Antoine Spillmann, chairman of SGEM and CEO and executive partner at Swiss-based Bruellan Wealth Management. "We look forward to a continued long-term partnership with Leclanché.
"The Marengo Project illustrates Leclanché's technological expertise and its innovative solutions in providing viable and competitive battery energy storage systems, as well as in managing the construction of the asset as the global EPC project contractor. The company's project portfolio and its order book provide a high-quality and diversified pipeline of energy storage assets," he added.
"The formation of SGEM and its acquisition of projects sends a strong signal that international investors are recognizing the tremendous potential of this exciting new infrastructure asset class," said Anil Srivastava, CEO of Leclanché, in prepared remarks. "The pipeline of similar projects will continue to generate a high-growth demand in North America.
"Leclanché is focused on executing those projects, both on cost and on time. The Marengo energy storage project leads the way to additional future projects and we are convinced that, thanks to investors such as SGEM, we will continue to play a leading role in the energy storage industry," he added.
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