Beacon flywheels pass regulatory hurdle in New York

March 23, 2007

A flywheel-based utility frequency regulation system by Beacon Power (NASDAQ: BCON) has completed successful field testing by the New York State Energy Research and Development Authority (NYSERDA) and the U.S. Department of Energy (DOE).

And the New York ISO, which operates the power grid, determined that Beacon’s technology is viable for connection to the grid, Beacon announced.

These milestones follow the January announcement that Beacon’s first flywheel frequency regulation demonstration system had received certification from the California ISO after successfully completing its field trial in that state (read the Cleantech Group's more detailed profile of the company in Beacon Power flywheels get good spin.)

“After evaluating the test results and discussing Beacon’s performance with representatives of the California ISO, we find the Beacon flywheel technology to be acceptable and viable for use in the New York ISO grid,” said Michael Calimano, vice president of operations, New York ISO.

“We are currently determining how the service would be integrated into our tariff structure, and we look forward to working with Beacon Power to implement this important new technology.”

The U.S. DOE (through Sandia National Laboratories, which co-monitored the demonstration with NYSERDA) had previously concluded that the unit’s performance had been successfully demonstrated and that additional testing was not required. The flywheel system will remain in place in Amsterdam, New York, to respond to any additional control methodology demonstration that may be requested by the New York ISO.

Beacon’s New York-based flywheel demonstration system was installed in March 2006 and began its formal field trial in June. The goal was to determine its ability to provide fast-response frequency regulation, as well as another ancillary service called reactive power.

Beacon is now evaluating potential operation in California, New York, New England and the Mid-Atlantic regions for its commercial-sized frequency regulation plants, the first of which Beacon plans to build in 2008.

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