Two of the biggest names in energy storage development have decided to join forces.
AES, a leader in megawatt-hours deployed, will launch a new company along with global energy systems provider Siemens. The jointly owned venture, dubbed Fluence, will scale up commercial and grid-scale storage deliveries worldwide.
The unprecedented move marks a pre-emptive consolidation of power in a young industry — and a new competitor for emerging market leader Tesla.
AES started deploying large utility-scale storage a decade ago, making it a seasoned veteran in the new and emerging advanced energy storage world.
The major independent power producer deployed its own projects in PJM’s frequency regulation market, and gradually transitioned to selling its Advancion system to third parties. The company recently completed the largest lithium-ion battery to be deployed date for San Diego Gas & Electric as part of the Aliso Canyon gas leak response.
It could have kept going with the same game plan. But early leaders of emerging markets don’t always retain that lead. With Fluence, AES hopes to solidify its position amid an increasingly bustling competitive landscape.
“We have to massify this product to continue to bring down costs,” said AES CEO Andrés Gluski, in an interview. “On long-duration systems, we think we’re the most competitive in the market, but we’ll be even more competitive if we’re even larger.”
For more than a century, Siemens has built the heavy-duty equipment that drives the grid, like generators and balance-of-plant devices. In the storage space, it has focused on commercial and industrial development for the last five years with the Siestorage product, and will bring that expertise to the joint venture.
Perhaps more consequential, though, is the company’s global footprint, which includes a sales presence in 160 countries with deep ties to utility, industrial and commercial customers.
“If you look at our energy business, we’re very well connected with all the leading utility players in the world,” said Dan Wishnick, sales and business development manager at Siemens Energy. “It’s a rare customer we haven’t touched in some shape or fashion.”
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