aes and siemens create joint-venture for energy storage - battery energy storage system1
(Reuters)-
Energy Corporation of AmericaAES. N)
Siemens, German engineering group (SIEGn. DE)
On Tuesday, they said they would set up a joint venture to serve the fast-growing energy storage market.
Big demand-
With advanced battery prices falling, countries are turning to renewable energy sources such as solar and wind, and large-scale energy storage is growing.
Pairing large batteries and other storage systems with renewable energy improves reliability without generating climate
Change emissions. The 50-
50 joint ventures called Fluence will sell lithium
Ion battery technology currently sold by AES and Siemens (AES. N), respectively.
"At the moment, this is a very fragmented market.
AES chief executive Andres Gluski told Reuters: "You will bring the two leaders together . "
Siemens technology focuses more on projects for individual companies and businesses such as universities and hospitals, while AES aims to incorporate a larger array of power grids in the region.
Tesla last week (TSLA. O)
Beat the privately owned Lyon Group to work with AES and dozens of other companies to sign a contract to install the world's largest grid
Battery size in Australia. The U. S.
From 2016 to 2022, the energy storage market alone is expected to grow tenfold to $3.
2 billion, according to a report from the United States this yearS.
Energy storage monitoring.
Kevin Yates, president of Siemens Energy Management, said AES and Siemens currently account for 17% of the installed energy storage.
The joint venture will be based in Washington, D. C. C.
There are offices in Germany and other international regions.
AES Energy Storage and Siemens battery, AES subsidiary-
Fluence, which is headquartered in the energy storage solutions group, will be merged and will operate independently of two owners.
Gluski said he could not say who was the top management until the company completed the regulatory process later this year.
The joint venture will start with about 100 people.
According to Gluski, Fluence expects the base of battery suppliers in the US, South Korea and Japan to be consistent with AES.
The companies expect the deal to be completed in the fourth quarter, pending regulatory approval.