Lyon, JERA, Fluence partner for Asian roll out of utility-scale battery storage

May 29, 2018 Media Release

Lyon, JERA and Fluence today announced a collaboration agreement to identify and pursue utility-scale battery storage development and investment opportunities in Asia Pacific markets.

David Green, Chairman, Lyon Group. Hendrik Gordenker, Chairman, JERA. Jan Teichmann, Vice President, Global Markets, Fluence.

The collaboration agreement combines one of the world’s largest energy companies (JERA), the world’s most experienced battery storage technology company (Fluence), and the world’s leading independent developer of integrated utility-scale battery storage and renewable generation projects (Lyon).

The parties will assess utilisation of utility and industrial scale battery storage solutions in new projects and at existing renewable and thermal generation plants across their collective operational footprints. On projects to which the parties commit, Lyon will be the project developer, JERA an investor, and Fluence the energy storage solution and service provider.

JERA is an equal joint venture of two major Japanese electricity companies, TEPCO Fuel & Power Incorporated and Chubu Electric Power Company.

Fluence is an equal joint venture of Siemens and AES and combines all battery-related actives previously undertake by the parent companies.

The collaboration agreement expands on the strong relationships formed by the parties through development of Lyon’s tranche 1 integrated solar and storage projects:

  • Cape York, Queensland (55MW solar + 20MW/80MWh storage)
  • Nowingi, Victoria (253 MW + 80MW/320MWh)
  • Riverland, South Australia (253MW + 100MW/400MWh) (up to 330MW solar including stage 2)

Quotes attributable to David Green, Chairman, Lyon

“Lyon’s collaboration agreement with JERA and Fluence is a major step toward a future where the world’s electricity systems meet consumers’ needs securely and reliably with renewable power.”

“This collaboration agreement is based on a shared understanding that the world requires low emissions energy systems that are also secure, reliable and affordable. Utility-scale battery storage solutions across new and existing generation plants will be a key enabler.”

“Lyon’s tranche 1 projects will include four-hour Fluence battery storage systems and are scheduled to commence construction in the coming months.”

“By partnering with Lyon, JERA moves to the forefront of realising the benefits of battery storage in electricity systems with increasingly variable generation. Fluence is our long-term technology partner and has deep knowledge of the power sector and the ability to deliver an industrial grade solution.”

“This collaboration agreement positions Lyon, JERA and Fluence to lead the world in the deployment and use of utility and industrial scale battery storage.”

“There are many markets beyond Australia where big batteries can provide substantial value in terms of network strength and dispatchable capacity. The ability of battery storage to reduce curtailment of variable renewable generation plant along the same transmission line is particularly attractive.”

Background

Lyon is the world’s leading independent developer of integrated utility-scale battery storage and renewable generation projects. Lyon developed and sold Australia’s first grid connected large-scale solar PV and battery storage project. Lyon is now leading the roll-out of the region’s largest pipeline of large-scale solar PV and battery storage projects, with advanced projects under development in Australia and early stage development projects in Asia. Lyon’s projects and the integration intellectual property that underpins their income capture are well positioned to play a central role in the rapid evolution of utility-scale battery storage. Lyon’s strategic foresight in identifying and advancing the roles for utility-scale battery storage in electricity systems with increasingly variable generation has brought together leading energy companies from across the world. Partnering with JERA and Fluence is integral to Lyon’s plan to develop, acquire, finance, own and operate utility-scale battery storage plants (integrated with renewable generation and standalone) across the Asia Pacific and in other jurisdictions in which its partners operate.

JERA is an energy company with global reach that has strength in the entire energy supply chain, from participation in LNG and other fuel resource projects and fuel procurement, through fuel transportation to power generation. Established in 2015, JERA is an equal joint venture of two major Japanese electricity companies, TEPCO Fuel & Power Incorporated and Chubu Electric Power Company. JERA’s mission is to supply power and energy on a globally competitive basis, by effectively developing and managing its portfolio of energy chain assets and continuously optimizing its business. JERA is the world’s biggest purchaser of gas and one of the largest coal traders globally. It has approximately 66GW of power generation in Japan (including generation assets to be succeeded from its parent companies in 2019) and approximately 8GW overseas.

Media contact: Tsuyoshi Shiraishi, Tsuyoshi.Shiraishi@jera.co.jp

Fluence, a Siemens and AES company, is a global energy storage technology solutions and services company that combines the agility of a technology company with the expertise, vision, and financial backing of two industry powerhouses. Established in 2018, as the successor to industry pioneers AES Energy Storage and Siemens energy storage, Fluence’s goal is to create a more sustainable future by transforming the way we power our world. The company offers proven energy storage technology solutions designed to address the diverse needs and challenges of customers in a rapidly transforming energy landscape, providing design, delivery and integration in over 160 countries. Fluence works closely with customers during every step of their journey and provides advisory, financing, and project lifecycle services. To date, Fluence’s teams have deployed or been awarded over 500 MW in 16 countries.

Media contact: Steven Goldman, +1 703 721 8673, steven.goldman@fluenceenergy.com

Utility-scale battery storage provides a cost-effective alternative to network infrastructure upgrades, ensures the full value of large-scale renewables can be realised, and provides multiple capacity and security services to the market at any given moment. The importance of the fast frequency response that is delivered by large-scale battery storage has become well understood. Other services that large-scale battery storage systems can provide include Energy Price Arbitrage/Load Shifting, Retailer Portfolio Optimisation, Renewable Energy Ramp Control, Frequency Control and Ancillary Services, Caps, Network Control and System Restart Ancillary Services, and Marginal Loss Factor services.

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