Alevo Group, an energy storage provider, is deploying an 8MW/4 MWh energy storage system in Lewes, Delaware (USA).
Alevo has worked closely with the City of Lewes and the Lewes Board of Public Works (BPW) on the project, which will involve the repurposing of a retired oil-fired generator building once operated by the BPW. Once complete, the deployment will be the largest of its kind in the State of Delaware.
The Lewes project is the first announced deployment for Alevo’s GridBanks and follows the company’s inauguration at an official event at its manufacturing facility in Concord, North Carolina in late 2014. At the event, Alevo unveiled plans to deliver massive efficiencies to power generation globally through its innovations in battery technology and data analytics.
The GridBank deployment in Lewes is the first in a series of major commercial deployments the company has scheduled for 2016, and follows an operational agreement Alevo struck with Customized Energy Solutions (CES), one of the world’s premier providers of energy market operations services, to provide 200MW of grid storage to the North American wholesale energy market.
Using Alevo’s GridBank technology, Alevo will be able to sell ancillary services into the PJM regulation market, while providing the city improved power quality, a more reliable electric grid system and the ability to shave peak demand for its customers. The project provides yet another example that energy storage is not only commercially viable, but that it allows stacking of multiple value streams to enhance project economics and provide significant benefits to the electric grid.
Theodore W. Becker, Mayor of Lewes, said of the announcement:
“The Lewes Board of Public Works has high expectations for the Alevo batteries and operating system that will be dispatched through Customized Energy Solutions. Lewes is a small municipal utility located at the “end of the extension cord” of PJM. We have had few options to manage and improve our capacity and transmission charges since taking our generation capacity out of the market in 1999 due to stiffening environmental rules. We also have the dilemma of a significant renewable energy presence in our distribution system – both a 1.5 MW wind turbine situated at the University of Delaware and one of the highest per capita installations of solar – which can cause upward pressures for demand costs to the system. The installation of the 8 MW battery will provide a significant tool to manage our capacity charges, our peak demands and transmission charges, and we anticipate it to be a boon for the citizens of Lewes.”
Jeff Gates, Vice President, Alevo, commneted:
“Lewes BPW is a great partner for Alevo and we look forward to a long relationship with them and other municipalities. With support from Lewes BPW, Alevo has been able to bring this project to market quickly, which will not only increase the overall efficiency of the PJM grid, but also add significant value to our local partner and their customers.”