EQS Group-News: Swiss Green Electricity Management Group SA / Key word(s): Investment
For publication on Tuesday 1st November 2016
Swiss Green Electricity Management Group, the independent owner and operator of energy storage assets globally, announces its first investment in US PJM Regulation Market.
- SGEM acquires its first US project and starts building a 20 MW / 10 MWh Energy Storage Plant outside Chicago to provide real-time frequency regulation service to the US regional transmission PJM Market
- SGEM announces a partnership with Leclanché and selects Leclanché as the overall Engineering, Procurement and Construction contractor and battery energy storage system supplier for Marengo Project
LAUSANNE, Switzerland, 1st November 2016. Swiss Green Electricity Management Group (SGEM), an innovative investment company focused on the rapidly growing international energy storage market, has been formed by a group of Swiss entrepreneurs led by Swiss investor Antoine Spillmann, the CEO and executive partner at Swiss-based Bruellan Wealth Management.
SGEM acquires late-stage energy storage projects on a build-own-operate model.
The group provides equity capital, leads project finance and supervises construction and operation of the respective energy storage assets to deliver risk-adjusted returns to investors.
"The significantly higher share of renewable energy in the electricity mix poses substantial challenges to a stable supply and requires strengthened grid stability," explains Antoine Spillmann, Chairman of SGEM. "As a direct result, demand for frequency regulation is growing considerably. The smart deployment of battery energy storage systems is the lowest-cost solution to help grid operators to reduce and defer their investments into transmission and distribution infrastructure upgrades. These services result in significant savings for both consumers and operators as illustrated in the already well-structured U.S. market. In parallel, the EU is now adopting new market regulation which will stimulate the implementation of similar projects in key European markets."
"SGEM works with strategic partners and co-investors on specific projects which are expected to benefit from risk-adjusted infrastructure returns, thanks to a portfolio of projects which is well diversified across geographies and market applications. We believe that SGEM is the industry's first independent owner and operator of energy storage projects," highlights Spillmann.
Preferred Partnership with Leclanché and First Project acquired from GlidePath Power
SGEM entered into a preferred partnership with Leclanché SA, a leading global, fully vertically integrated battery energy storage solution company. This partnership provides SGEM a right of first offer to Leclanché's qualified projects. The first project of this partnership is the acquisition of the Marengo Energy Storage Plant located outside of Chicago, Illinois. The grid-scale energy storage project, with 20 megawatts (MW) of power capacity and the ability to store 10 megawatt-hours (MWh) of energy capacity, is among the largest fully commercial battery storage projects in North America.The project was developed by GlidePath Power, a leading developer of advanced energy solutions, which recently sold three similar projects to British power producer RES and French utility EDF. SGEM and GlidePath worked together to validate the project's technical and economic performance. GlidePath selected Leclanché as the overall engineering, procurement and construction contractor, system integrator and battery energy storage systems (BESS) supplier. Leclanché's integrated BESS provides superior performance factor as defined by the Reg D PJM Regulation Market.
The Marengo plant will be interconnected to the local Commonwealth Edison Company (ComEd) electric grid and will provide real-time frequency regulation service to PJM Interconnection (PJM). The project will respond almost instantly to the continually changing needs of the grid, allowing PJM to deliver higher-quality reliable electrical service, at a lower cost, to end users in the 13 states and the District of Columbia.
"By entering the well-structured and dynamic PJM energy storage market with the Marengo Project, SGEM investors are providing long term commitments to this fast growing asset infrastructure class," said Spillmann. "We look forward to a continued long-term partnership with Leclanché as the Marengo Project illustrates the Swiss company's technological expertise and its innovative solutions in providing viable and competitive BESS, as well as in managing the construction of the asset as the global engineering, procurement and construction project contractor. The partnership's project portfolio provide a high quality and diversified pipeline of energy storage assets. We look forward to further growing our portfolio in the North American market and looking into other projects worldwide."
"Battery storage projects can respond instantaneously to smooth out the peaks and valleys in electric voltage, which allows grid operators to provide a more stable supply of power while generating revenue for project owners," commented Dan Foley, CEO and founder of GlidePath Power. "SGEM's investment demonstrates European investors' growing interest in the American energy storage market. Projects like Marengo will be critical to maintain the stability of the electric grid as more renewables and distributed generation come online."
"SGEM is the first independent investment firm to deploy dedicated capital into this new infrastructure asset class and is paving the way to new responsible equity investments. Leclanché is now focused on constructing the project on cost and time" said Anil Srivastava, CEO of Leclanché.
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Document title: Kit