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.