U.S. Department of Energy - Energy Efficiency and Renewable Energy

Advanced Manufacturing Office – Industrial Distributed Energy

DOE Guarantees $17 Million Loan for New York Energy Storage System

January 5, 2011

DOE announced on December 23 that it had finalized a $17.1 million loan guarantee using American Recovery and Reinvestment Act funds for the AES Westover facility in upstate New York. The loan guarantee will support the construction of a 20-megawatt (MW) energy storage system in Johnson City that will use advanced lithium-ion batteries. The AES project will help provide a more stable and efficient electrical grid for the state's high-voltage transmission network.

The AES technology can help reduce carbon emissions by 70% compared to frequency regulation provided by fossil energy suppliers. Traditionally, grid frequency regulation, which is needed to balance power generation and consumption on the grid, is maintained by burning additional fossil fuels at power plants. The AES project eliminates this need, and instead uses battery technology and new software. This advanced frequency regulation capability will allow renewable electricity generation to play a larger role in New York's transmission network. DOE's Loan Programs Office has issued loan guarantees or offered conditional commitments for loan guarantees totaling nearly $16.5 billion in support of 16 clean energy projects. See the DOE press release and the Loan Programs Office Web site.