Japan’s TEPCO takes stake from Renewable Energy Systems Americas (RES) in an Ohio-based battery storage project to provide frequency regulation in PJM network
TOKYO — TEPCO Holdings, the Tokyo-based electric power company, announced today it has acquired from Colorado-based Renewable Energy Systems Americas Inc. (RES), 50 percent interests of Battery Utility of Ohio, LLC (BUO), that provides frequency regulation services to PJM, a regional U.S. transmission network operator. TEPCO, through the acquisition, and RES will each own 50 percent of BUO.
BUO uses a battery storage system manufactured by BYD America, a large Chinese battery supplier, along with the RESolve(R) control and monitoring software developed by RES, and provides balancing services to PJM, which coordinates the movement of wholesale electricity in all or parts of 13 states and the District of Columbia. Acting as a neutral, independent party, PJM operates a competitive wholesale electricity market and manages the high-voltage electricity grid.
TEPCO expects to use the knowledge and technological expertise it gains through this relationship to provide trading and balancing resources to the newly deregulated electricity distribution market in Japan by 2020.
“Battery storage facilities, similar to the BUO project, provide fast-response frequency regulation service to help electric grid operators manage the quick reconciliation between load and generation across the grid,” said Graham Reid, RES CEO, Americas. “Energy storage, as well as renewable energy projects, continue to lead us to a future where everyone has access to affordable low-carbon energy.”
“We are pleased to be partnering with RES, and this is essential for TEPCO to accelerate the transformation of the energy industry and the evolution of its businesses with advanced and environmentally friendly technology”, TEPCO Managing Executive Officer Shinichiro Kengaku said, “TEPCO looks forward to creating additional innovative business opportunities overseas.”