New York-based Convergent Energy + Power has completed construction of a first-of-its-kind energy storage system in Canada. It is designed to reduce Global Adjustment demand charges, which account for up to 70% of electricity bills for some customers in Ontario. The project is anticipated to reduce electricity cost on the load it addresses by 15-30% per year starting in 2018.
"We deploy energy storage to reduce electricity costs for our customers under a shared savings agreement," said Johannes Rittershausen, CEO of Convergent. "That means we handle all the cost and risks of building and managing the project, and the customer shares in the savings created. If we do not deliver, our customers do not pay."
Convergent installed the energy storage system at Husky Injection Molding Systems, a Canadian-based company specializing in injection molding equipment and services to the plastics industry. The system is specially designed to reduce demand charges and resulting electricity costs at the Husky plant. The constructed asset will be operational as soon as Hydro One is finished with its interconnection work.
Convergent worked with Lockheed Martin Energy to install their GridStar™ Lithium battery systems. The company used local Mississauga-based vendors for the balance of plant equipment, Ontario-based S&T Electric for construction management, and SNC Lavalin for the design work.
"We are pleased to supply Convergent Energy + Power with our turnkey GridStar™ energy storage system," said Roger Flanagan, managing director for Lockheed Martin Energy. "Due to our unique and market-leading system design, the required storage capacity was able to fit in a small footprint and be built at a lower cost."
Photo: Convergent Energy + Power completes an 8.5-MWh energy storage project at Husky Injection Molding System Ltd. in Bolton, Ontario (CNW Group/Convergent)