Energy Storage System
LG Chem will provide batteries for the world’s largest 140-megawatt energy storage system (ESS) to Germany’s fifth-largest power-generation company.
The company announced on Nov. 9 that it has won a deal to exclusively provide batteries to Germany’s fifth-largest power-generation company Steag for an ESS project, which is scheduled to be established in six regions in the North Rhein-Westfalen and Saarland starting next year. It is the project to build ESS facilities for frequency regulation. The ESS for frequency regulation is used to maintain the reliable operation of the electrical grid by balancing the fluctuations between power generation and electrical load. Nidec ASI, Europe’s top ESS company, will build the system using LG Chem’s batteries.
In particular, LG Chem will supply batteries capable of producing 140 megawatts per hour, which is the world’s highest. That much energy can fully charge 7,600 units of the new GM Chevrolet Volt concept electric car. Also, it is a deal worth tens of millions of dollars.
With the latest contract, LG Chem has received orders at home and abroad to supply ESS batteries with capacity of 400 megawatts this year so far. It exceeds half of the entire ESS batteries shipped in the world’s market with capacity of 764 megawatts last year.
According to the international market analysis agency Navigant Research, the global ESS market is expected to reach 7.3 trillion won (US$6.3 billion) by 2020, which accounts for seven-fold growth from 1.05 trillion won (US$905.95 million) this year.