As utilities grapple with the challenges of integrating intermittent renewables into their grids the key technology everyone looks to for a solution is gaining momentum. High profile announcements by energy storage system manufacturers, such as Tesla’s recent deal with French utility Neoen to build 100MW of battery storage for the Australian grid in 100 days grabbed headlines well beyond the utility market.
Now, the world market for utility-scale energy storage systems will have a new entrant with significant backing. Siemens AG, Munich, Germany, is joining forces with global power company AES Corporation, Arlington, VA, to form a new global energy storage technology and services company under the name Fluence.
The joint venture will bring together AES’ 10 years of experience deploying energy storage in seven countries with over a century of Siemens’ energy technology development and its global sales presence in more than 160 countries.
Fluence will combine the AES Advancion and Siemens Siestorage energy storage platforms with expanded services to serve the energy storage sector’s needs for scalable, flexible, and cost-competitive energy storage solutions, the companies said in a joint release.
Siemens and AES will have joint control of the company with each holding a 50% stake. Fluence’s global headquarters will be located in the Washington, D.C., area with additional offices located in Erlangen, Germany and select cities worldwide. The transaction is expected to close in the fourth quarter of calendar year 2017, subject to regulatory and other approvals.
Fluence will operate independently of its parent companies, combining Siemens’ battery-based energy storage solutions group under its Energy Management division with AES’ subsidiary, AES Energy Storage.
AES and Siemens are currently ranked among the leading energy storage integrators worldwide by Navigant Research. Together, the two companies have deployed or have been awarded 48 projects totaling 463 MW of battery-based energy storage across 13 countries, including the world’s largest lithium-ion battery-based energy storage project near San Diego.
“As the energy storage market expands, customers face the challenge of finding a trusted technology partner with an appropriate portfolio and a profound knowledge of the power sector. Fluence will fill this major gap in the market. With the global reach of an experienced international sales force, as well as Siemens’ leading technology platform Siestorage at its disposal, Fluence will be perfectly equipped to serve this very interesting market,” said Ralf Christian, CEO of Siemens’ Energy Management Division.
“Over the past ten years, AES has become a global leader in utility-scale, battery-based energy storage. Today, AES’ Advancion platform is present in seven countries with more than 200 MW of energy storage deployed, including the largest installed system of its kind in the world,” said Andrés Gluski, AES president and CEO. “Partnering with Siemens to form Fluence will offer both large and small customers the full gamut of proven, state-of-the-art energy storage solutions in over 160 countries. This will accelerate the integration of renewables into the energy network of tomorrow.”