LG Chem has supplied a 7 MWp/3 MWh battery system to a local municipal utility in the Village of Minster, Ohio. The PV+storage system will provide a range of services, thus accessing four distinct revenue streams.
Electricity network frequency regulation, grid expansion deferral, power quality improvements and peak demand shaving will all be delivered by the system, demonstrating how large scale storage can fulfill various grid needs and therefore make financial sense in certain parts of the electricity network.
This project is a key example of how energy storage can generate tangible revenue streams while providing critical grid services, said Mike Edmonds, president, U.S. Business Unit at S&C. S&C has been able to deliver a comprehensive energy storage solution through its collaboration with LG Chem and is very proud to be moving the energy storage industry forward.
South Koreas LG Chem delivered and installed the 7 MW battery system, with S&C completing its commissioning.
Collaboration on this project with S&C has provided not only key learnings but also a system that provides the community with critical grid services, as well as commercially viable revenue streams for the system owner and local utility, said Sunghoon Jang, senior vice president, Energy Solution, LG Chem. This project shows how the energy storage industry has entered another phase with viable projects for customers and end users.
In a press statement announcing the projects completion, the parties pointed to how large scale battery storage can provide multiple services to the grid while delivering a better quality power supply. It said that 61 million customers within the PJM interconnection in the U.S. northeast, could be particularly well served by such storage arrays.
The utility scale storage market in the U.S. has been tipped by Frost & Sullivan to be worth almost $8.5 billion by 2024. It has forecast 2017 to be the year in which deployment rapidly accelerates.