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The AES Corp. (AES - Analyst Report) has begun operating an electric battery storage system with an electric generation capacity of 40 megawatt (MW) in Ohio. The company now has more than 100 MW of grid-scale storage in the U.S.

The storage system will be utilized by AES’ Dayton Power & Light’s Tait generating station in Moraine, Ohio. The Tait battery with more than 800,000 battery cells connects through DP&L Tait station’s transformers, operated by DP&L and DPL Energy, LLC, through an independent agreement with PJM. The project will provide regulation services to PJM Interconnection to stabilize the grid that supplies electricity to 60 million people.

This is the company’s fifth facility to run on its Storage Operating System. This patented operating system is known as sOS. Its fast-response control architecture uses patented performance algorithms to automate the operation of battery-based energy storage arrays. While optimizing performance and efficiency for customers, this operating system extends the life of the battery. With its sOS, the facility will be able to reliably meet the power needs from otherwise inefficient or retiring power plants.

AES Corp.’s storage resources are currently deployed in the U.S. and South America. With a base of fossil fuel plants, the company is predominantly involved in long-term contracts. The company is investing substantially in capacity expansion in the power hungry regions of Latin America and Asia. The company presently has a short-term Zacks Rank #2 (Buy).

Other stocks worth considering in the space are Brookfield Infrastructure Partners L.P. (BIP - Snapshot Report), Cleco Corp. (CNL - Snapshot Report) and Huaneng Power International, Inc. (HNP - Snapshot Report), all with a Zacks Rank #2 (Buy).

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