Leclanché will serve as the engineering, procurement and construction (EPC) contractor and battery energy storage system supplier for the Marengo project in the PJM Market. This latest project, the company’s first in the United States following a project win in Canada earlier this year, strengthens the company’s presence in North America.
The company signed a preferred partnership agreement with SGEM, an independent owner and operator of energy storage assets, in August 2016. This partnership agreement for investments into utility-scale energy storage projects begins with the 20 MW Marengo grid-scale energy storage project, which is among the largest, fully commercial, battery storage projects in North America. The project, located in the Chicago area, is being developed for the PJM Interconnection, the regional market transmission operator. It was developed by GlidePath Power, a leading developer of advanced energy solutions, which recently sold three similar projects in the US.
The Marengo project will be interconnected to the local Commonwealth Edison Company (ComEd) electric grid and will provide a real-time frequency regulation service to PJM. The storage facility will respond almost instantly to the continually changing needs of the grid, providing real-time frequency regulation and allowing PJM to deliver higher quality reliable electrical service at a lower cost to its end-users in 13 states and the District of Columbia. The increasing share of renewable energy in the electricity mix poses substantial challenges to grid stability. As a direct result, demand for frequency regulation is growing considerably.
The smart deployment of battery energy storage systems (BESS) is the lowest cost solution to support grid operators in their efforts to reduce and defer their investments into transmission and distribution infrastructure upgrades. SGEM provides equity capital, leads project finance and supervises the construction and operation of energy storage infrastructure assets to deliver optimum risk-adjusted returns to its investors. The Group invests in energy storage projects on a build-own-operate model.
Thanks to its partnership with Leclanché, SGEM enjoys the right of first offer for all qualified projects of the company which represent over 85 MWh for 2017.
“Next generation battery storage technology is creating a cleaner and more efficient electrical systems across the U.S.” said Dan Foley, CEO and founder of GlidePath. “We are looking forward to working again with Leclanché as we focus on developing new projects that provide reliable electricity to the grid and end-users.
Antoine Spillmann, Chairman of SGEM and CEO and Executive Partner at Swiss-based Bruellan Wealth Management, added that the project will be SGEM’s first participation in the well-structured and dynamic PJM energy storage market, and that the Marengo Project offers SGEM investors the opportunity to provide a long-term commitment to this fast-growing infrastructure asset class.
Leclanché brings considerable technological expertise to the project, along with innovative battery energy storage systems and its management capabilities as the global EPC project contractor. The company’s project portfolio and its order book provide a high quality and diversified pipeline of energy storage assets. The pipeline of similar projects will continue to generate a high-growth demand in North America, with the Marengo Project leading the way for additional future projects.
Image: SGEM
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