LG CNS, a leading energy solutions and services provider across energy storage, microgrids, renewable energy and smart cities sectors, was awarded a $43 million contract by the Guam Power Authority (GPA) to deliver, operate and maintain two Energy Storage Systems (ESS) that combined can deliver 40 megawatts (MW) of power output. The contract, celebrated at a ceremony on May 15, 2017, marks LG CNS' largest ESS project to date.
The project will reduce the intermittent power outages Guam is experiencing due to increasing net metering penetration and utility scale renewable projects. Further, the project will help GPA prepare the grid as it works toward reaching a renewable goal of 25 percent by 2035. Plans call for a 24 MW ESS for frequency regulation to be located at a substation in the village of Agana, and a 16 MW ESS for renewable integration to be installed at a substation in the village of Talofofo, which is connected to an existing solar farm.
Under terms of the agreement, LG CNS is responsible for delivering the ESS systems on a "turnkey" basis within 12 months. The systems will utilize LG Chem lithium-ion batteries and LG CNS' own Energy Management System (EMS) to provide frequency regulation and solar photovoltaic (PV) ramp rate control. The project includes a 25-year operations and maintenance agreement.
The Guam ESS project is of strategic importance for LG CNS on a number of fronts. As an island 3,000 miles away from the nearest main landmass, Guam is positioned to become a prime example of the growing global microgrid market for isolated electric utilities. The Paris Agreement of the United Nations Framework Convention on Climate Change has triggered interest in renewable energy-based,self-sustainable microgrids, in which ESS plays a critical role.
Guam also serves as a strategic base for expansion into various markets, including Hawaii and the U.S. mainland to the east, Australia to the south and Southeast Asian countries to the west.
"This is GPA's Phase 1 project and we are now in a strong position for more success in upcoming opportunities," said Tae Seok Ha, Vice President of Smart Energy at LG CNS. "It was a result of great synergy between LG CNS' EMS and System Integration capabilities built upon its extensive domestic project experiences and LG Chem's Global No. 1 ESS Battery Technology. This marks a meaningful success in the growth and future of the LG Group."
Upon completion, LG CNS will have deployed over 125 MW of energy storage projects, further enhancing its position as one of the global market and technology leaders for ESS. LG CNS was ranked as No. 1 in Asia and No. 7 globally in the latest Utility-Scale ESS Integrators Leaderboard by Navigant Research.
"This investment will help alleviate system frequency issues, forced outages and support renewable integration," said John M. Benavente, P.E. General Manager of Guam Power Authority. "Our ratepayers typically experience short outages whenever a generator trips in the system in order for us to avoid a blackout. It is estimated the ESS would eliminate about 77 percent of those outages, thereby substantially improving service reliability to our ratepayers."
GTM Research expects annual U.S. ESS deployments to reach 2.6 GW and become a $3.3 billion market by 2022. Outside the U.S., a 2017 World Bank Report projected the ESS market to grow to $24 billion by 2025, mainly through growth in East Asia and Pacific regions.
LG CNS Media Contact:
Dick Pacini
The Millerschin Group
T: 248-276-1970
C: 248-770-6446
E: dpacini@millerschingroup.com
