AES Wind Generation, AES Energy Storage announce commercial operation of 98-MW AES Laurel Mountain wind generation plant near Elkins, West Virginia; plant also has 32 MW of integrated battery-based energy storage

Graziela Medina Shepnick

ELKINS, West Virginia , October 27, 2011 (press release) – 32 MW Energy Storage Facility the Largest of its Kind

AES Wind Generation and AES Energy Storage announce the commercial operation of AES Laurel Mountain, a wind generation plant comprised of 98 MW of wind generation and 32 MW of integrated battery-based energy storage. The project is supplying emissions-free renewable energy and clean, flexible, operating reserve capacity to the PJM Interconnection, the largest power market in the world.

“Energy storage technology is the silver bullet that helps resolve the variability in power demand,” said Terry Boston, PJM president and CEO. “Combining wind and solar with storage provides the greatest benefit to grid operations and has the potential to achieve the greatest economic value.”

The 32 MW advanced storage project is the largest of its kind. Leveraging advanced battery technology, the storage service provided by AES Energy Storage will help optimize the renewable energy generated. The project provides PJM with regulation service, delivering instantaneous response to grid operator requests for power, helping to match generation and demand. The storage also allows the wind facility to control the ramp rate of its generation, smoothing out fluctuations in minute to minute output. AES Laurel Mountain is among the first wind generators to supply critical operating reserve capacity to help maintain the reliability of the power grid.

“The Laurel Mountain project is a unique application of wind and battery storage technology combining clean energy production with state of the art grid support services,” said Phil Herrington, President of Global Wind Generation for AES. “We are very excited to be a part of this project, and couldn’t have completed this milestone without the overwhelming public support from the local community.”

AES Laurel Mountain consists of 61 GE 1.6 MW wind turbine generators capable of a combined power generation of 97.6 MW and 32 MW of A123 Systems energy storage devices. The 61 wind turbines are mounted on 80-meter towers deployed along a 13-mile stretch of Laurel Mountain located in Randolph and Barbour counties near Elkins, West Virginia. The facility will supply more than 260,000 MWh of emissions-free, renewable energy each year to the PJM Interconnection.

“We delivered this solution with our wind generation business to serve the reliability needs of the PJM power market and its utility members,” said Chris Shelton, President of AES Energy Storage. “The Laurel Mountain storage facility is more than double the size of our previous projects, demonstrating our ability to scale up this advanced power resource. We look forward to serving PJM and to bringing similar emissions free capacity services directly to utility companies seeking clean capacity resources – with no direct emissions and no water usage requirements.”

AES has 72 MW of grid-scale storage resources in operation and construction and more than 500 MW of advanced energy storage projects in development. AES’ other projects in operation include an 8 MW battery system in the New York Independent System Operator (NYISO) market and a 12MW frequency regulation and spinning reserve solution at AES Gener’s Los Andes substation in Chile.

AES Wind Generation has 1,900 MW in operation globally, of which nearly 1,400 MW are located throughout the U.S. This project is AES Wind Generation’s second wind facility serving the PJM market, following the successful completion of AES Armenia Mountain located in Pennsylvania.

About AES Energy Storage

AES Energy Storage, a subsidiary of The AES Corporation (NYSE: AES), is the owner-operator of advanced storage projects that provide emissions-free capacity to improve the performance and reliability of today’s power grid. Emissions-free capacity is a fast and flexible power system resource, combining patented software, dynamic power control and storage technology. AES Energy Storage deploys and operates emissions-free capacity projects to help utilities, power markets and renewable developers level the variability of generation and demand on the grid, reduce operating costs, and meet future power system needs. To learn more please visit www.aesenergystorage.com.

About AES Wind Generation

AES Wind Generation is a wholly owned subsidiary of the AES Corporation (NYSE: AES). Formed in 2005, the company leverages AES' more than 25 years experience in originating, financing, developing and managing power projects all over the world. Today AES Wind Generation operates more than 1,900 MW of wind capacity in the U.S., China and Europe.

About AES

The AES Corporation (NYSE: AES) is a Fortune 200 global power company. We provide affordable, sustainable energy to 28 countries through our diverse portfolio of distribution businesses as well as thermal and renewable generation facilities. Our workforce of 29,000 people is committed to operational excellence and meeting the world's changing power needs. Our 2010 revenues were $17 billion and we own and manage $41 billion in total assets. To learn more, please visit www.aes.com.

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