Leclanché Selected by Swiss Green Electricity Management Group for First Energy Storage Project in U.S.
– Leclanché SA (SIX: LECN), the leading global and vertically integrated battery energy storage solution company, has been selected 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. This latest project, the company’s first in the United States following a project win in Canada earlier this year, strengthens the company’s presence in North America. In August 2016, Leclanché signed a preferred partnership agreement with Swiss Green Electricity Management Group (SGEM), an independent owner & operator of energy storage assets. This partnership agreement for investments into utility-scale energy storage projects begins with the Marengo Energy Storage Plant in the U.S. The Marengo 20 MW / 10 MWh grid-scale energy storage project is among the largest, fully commercial battery storage projects in North America.
The Chicago-area project is being developed for the PJM Interconnection, the regional market transmission operator. It was developed by GlidePath Power, a leading developer of advanced energy solutions, which recently sold three similar projects in the United States. The Marengo Energy Storage Plant will be interconnected to the local Commonwealth Edison Company (ComEd) electric grid and will provide real-time frequency regulation service to PJM. The storage 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 increasing share of renewable energy in the electricity mix poses substantial challenges to grid stability. As a direct result, demand for frequency regulation is growing considerably. The smart deployment of battery energy storage systems (BESS) is the lowest-cost solution to support grid operators in their efforts to reduce and defer their investments into transmission and distribution infrastructure upgrades. 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 Group invests in energy storage projects on a build-own-operate model. Thanks to its partnership with Leclanché, SGEM enjoys the right of first offer for all qualified projects of the company which represent over 85 MWh for 2017. “Next generation battery storage technology is creating a cleaner and more efficient electrical systems across the U.S.,” commented Dan Foley, CEO and founder of GlidePath. “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.” Page 2/3 “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 longterm 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,” Spillmann continued. “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. The pipeline of similar projects will continue to generate a highgrowth 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,” said Anil Srivastava, CEO of Leclanché.
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