SunEdison and Advanced Microgrid Solutions Join Forces to Finance and Deploy 50 Megawatts of Energy Storage for Southern California Edison

Landmark deal is first of its kind to replace utility power generation capacity with battery storage located at customer sites. 200 Megawatt hours of battery storage capacity to be built out over 2016 and 2017. AMS storage assets are first anticipated to be acquired by TerraForm Power.

July 15, 2015

BELMONT and SAN FRANCISCO — Advanced Micro­grid Solu­tions (AMS), a devel­oper of customer-​​sited energy stor­age sys­tems that cre­ate Hybrid-​​Electric Build­ings™, and SunEdi­son, Inc. (NYSE:SUNE), the world’s largest renew­able energy devel­op­ment com­pany, today announced they have signed a joint devel­op­ment agree­ment to finance and deliver 50 megawatts of energy stor­age for South­ern Cal­i­for­nia Edi­son (SCE) under long-​​term capac­ity con­tracts. Once oper­a­tional, these AMS projects are expected to be the first stor­age assets to be acquired by Ter­raform Power, Inc. (Nas­daq: TERP), a global owner and oper­a­tor of clean energy power plants.

The stor­age sys­tem con­tracts were awarded to AMS as part of SCE’s 2013 Local Capac­ity Require­ment solic­i­ta­tion, and will be built on com­mer­cial and indus­trial cus­tomer sites through­out the West Los Ange­les Basin.

SCE will pur­chase capac­ity from the stor­age sys­tems under a 10-​​year capac­ity con­tract, and expects to use the elec­tric­ity stored in these fleets of hybrid-​​electric build­ings in part to off­set the power once pro­duced by the decom­mis­sioned San Onofre nuclear power plant and other soon-​​to-​​be retired gas-​​fired plants. This pro­gram is part of SCE’s plan to mod­ern­ize the grid by adding 2.2 gigawatts of newer, cleaner resources includ­ing energy stor­age and renew­ables by 2022.

Bat­tery stor­age offers sev­eral ben­e­fits over tra­di­tional power sources: it is cleaner, responds faster, can be located directly at load cen­ters and is increas­ingly less expen­sive than other options for tack­ling peak elec­tric­ity demand.

We’re enthu­si­as­tic about work­ing with SunEdi­son as our devel­op­ment and financ­ing part­ner to deliver these inno­v­a­tive solu­tions to our host cus­tomers and SCE,” said Susan Kennedy, Advanced Micro­grid Solu­tions chief exec­u­tive offi­cer. “We are cre­at­ing the future of the energy grid.”

SunEdi­son is excited to be work­ing with both Advanced Micro­grid Solu­tions and SCE to inte­grate today’s leading-​​edge tech­nol­ogy into the energy grid,” said Tim Der­rick, SunEdi­son gen­eral man­ager of Advanced Solu­tions. “AMS’ energy stor­age solu­tions are truly ground-​​breaking. With these sys­tems, the util­ity will for the first time be tap­ping into energy stored by its own cus­tomers to pro­vide grid sup­port dur­ing times of high demand. SCE deserves great credit for being the first util­ity to issue local capac­ity con­tracts for behind-​​the-​​meter, aggre­gated bat­tery storage.”

The AMS-​​SunEdison part­ner­ship com­bines Advanced Microgrid’s inno­v­a­tive designs and tech­nol­ogy part­ner­ships with SunEdison’s devel­op­ment and financ­ing exper­tise. The first fleet of energy stor­age sys­tems is expected to begin com­mer­cial oper­a­tion in 2016 in Irvine, California.

We are excited to be expand­ing our clean energy port­fo­lio with a new asset type that pro­vides both attrac­tive returns and strong growth prospects,” said Car­los Domenech, Ter­raForm Power’s chief exec­u­tive offi­cer. “Ter­raForm Power antic­i­pates acquir­ing these sys­tems once oper­a­tional, mak­ing them the first stor­age projects in our fleet. These sys­tems fit well with our con­tracted clean power gen­er­a­tion fleet, as they have long term capac­ity con­tracts with SCE, a lead­ing util­ity and cus­tomer with a strong bal­ance sheet and credit rating.”

About Advanced Micro­grid Solutions

Advanced Micro­grid Solu­tions (AMS) is pio­neer­ing the use of energy stor­age sys­tems for elec­tric util­ity grid sup­port. Using a technology-​​agnostic approach, the com­pany designs, finances, installs and man­ages advanced energy stor­age solu­tions for com­mer­cial, indus­trial and gov­ern­ment build­ing own­ers. To learn more visit http://​www​.advmi​cro​grid​.com/

About SunEdi­son

SunEdi­son is the world’s largest renew­able energy devel­op­ment com­pany and is trans­form­ing the way energy is gen­er­ated, dis­trib­uted, and owned around the globe. The com­pany devel­ops,
finances, installs, owns and oper­ates renew­able power plants, deliv­er­ing pre­dictably priced elec­tric­ity to its res­i­den­tial, com­mer­cial, gov­ern­ment and util­ity cus­tomers. SunEdi­son is one of the world’s largest renew­able energy asset man­agers and pro­vides cus­tomers with asset man­age­ment, oper­a­tions and main­te­nance, mon­i­tor­ing and report­ing ser­vices. Cor­po­rate head­quar­ters are in the United States with addi­tional offices and tech­nol­ogy man­u­fac­tur­ing around the world. SunEdison’s com­mon stock is listed on the New York Stock Exchange under the sym­bol “SUNE.” To learn more visit www​.sunedi​son​.com.

About Ter­raForm Power

Ter­raForm Power is a renew­able energy leader that is chang­ing how energy is gen­er­ated, dis­trib­uted and owned. Ter­raForm Power cre­ates value for its investors by own­ing and oper­at­ing clean energy power plants. For more infor­ma­tion about Ter­raForm Power, please visit www​.ter​raform​.com.

For­ward Look­ing Statements

Cer­tain mat­ters dis­cussed in this press release are forward-​​looking state­ments, includ­ing: 200 Megawatt hours of bat­tery stor­age capac­ity to be built out over 2016 and 2017; SCE will pur­chase capac­ity from the stor­age sys­tems under a 10-​​year capac­ity con­tract, and expects to use the elec­tric­ity stored in these fleets of hybrid-​​electric build­ings in part to off­set the power once pro­duced by the decom­mis­sioned San Onofre nuclear power plant and other soon-​​to-​​be retired gas-​​fired plants; and this pro­gram is part of SCE’s plan to mod­ern­ize the grid by adding 2.2 gigawatts of newer, cleaner resources includ­ing energy stor­age and renew­ables by 2022. Such state­ments involve cer­tain risks and uncer­tain­ties that could cause actual results to dif­fer mate­ri­ally from those in the forward-​​looking state­ments. Poten­tial risks and uncer­tain­ties include changes in applic­a­ble reg­u­la­tory require­ments and incen­tives for pro­duc­tion of solar power; and gen­eral busi­ness and eco­nomic con­di­tions, includ­ing sea­son­al­ity of the indus­try, and other risks described in SunEdison’s fil­ings with the United States Secu­ri­ties and Exchange Com­mis­sion. These forward-​​looking state­ments rep­re­sent SunEdison’s judg­ment as of the date of this press release. SunEdi­son dis­claims, how­ever, any intent or oblig­a­tion to update these forward-​​looking statements.