Siemens and AES have launched an energy storage business which they claim will be a “game changer” due to their combined financial muscle and global footprint.
The two said the business name ‘Fluence’ is derived from the “confluence of forces” that are redefining the global energy system, with the need to store energy becoming “critical” due to the increasing penetration of renewables.
The joint venture will bring “credibility” to the nascent storage industry, they claim.
Siemens and AES will have joint control of the company with each holding a 50 percent stake and Fluence will operate independently of its parent companies, according to a joint statement.
The statement adds that the two companies have deployed or have been awarded 48 projects totalling 463 MW of battery-based energy storage across 13 countries, including the world’s largest lithium-ion battery-based energy storage project near San Diego, California.
The transaction is expected to close in the fourth quarter of calendar year 2017, subject to regulatory and other approvals.
“As the energy storage market expands, customers face the challenge of finding a trusted technology partner with an appropriate portfolio and a profound knowledge of the power sector. Fluence will fill this major gap in the market. With the global reach of an experienced international sales force as well as Siemens’ leading technology platform Siestorage at its disposal, Fluence will be perfectly equipped to serve this very interesting market,” said Ralf Christian , CEO of Siemens’ Energy Management Division .
“Over the past ten years, AES has become a global leader in utility-scale, battery-based energy storage. Today AES’ Advancion platform is present in seven countries with more than 200 MW of energy storage deployed, including the largest installed system of its kind in the world,” said Andrés Gluski, AES President and CEO.
“Partnering with Siemens to form Fluence will offer both large and small customers the full gamut of proven, state-of-the-art energy storage solutions in over 160 countries. This will accelerate the integration of renewables into the energy network of tomorrow.”
See the announcement here.