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Southern California Edison Selects LG Chem for Residential ESS Pilot Program

Southern California Edison (SCE) has selected LG Chem, Ltd. to provide lithium-ion battery packs for a pilot program involving energy storage systems (ESS) for residential and small commercial applications.

The energy storage systems at each location will provide 10 kWh of energy, which can assist in reducing peak power usage by up to 4 kW. Field deployment testing of the systems will begin during the third quarter of 2011 and will be completed by the end of 2012.

An LG Chem consortium, working jointly with LG Electronics and LS Industrial Systems, is providing a complete system solution to meet the requirements of the home energy storage program. LG Chem will provide the lithium-ion battery packs; LG Electronics will provide the solar photovoltaic inverter and control and communication equipment; LS Industrial Systems will provide the battery charger; and LG Chem Power, Inc., a wholly-owned subsidiary of LG Chem, will assemble the systems, which will then be supplied to SCE.

This marks an important step in the continued and growing development of alternative energy storage devices that can be used in demand response applications for both economic and reliability load management.

The test program will provide a broad platform for evaluating complete real-world systems with home energy storage, Demand Response (DR) strategies, renewable energy generation (wind and solar), and SCE’s Advanced Metering Infrastructure (AMI). It will also allow us to test how these energy storage systems can help mitigate power shortages, as well as enhance our load shifting capabilities and the distribution system’s overall reliability.

—Larry Oliva, director of Tariff Programs and Services at Southern California Edison



A 10 KWh unit can certainly reduce peak loads and the impact of power cuts and shortages. A few million of those, at existing grid users would be beneficial to both the suppliers and users of grid e-energy.

Who would absorb the $10+K cost?

Tim Duncan

This sounds like a very expensive solution. Gee, wonder why other states don't use this. Oh that's right this is the Calf. electrical market. Wonder how much funny money from the Feds is driving this wopper.


0$ federal money, all state money

Other states are busy burning coal. California needs this type of device to support their high level of renewable generation

In volume this thing will be well under $10k not including any incentives.

It also can back-up your house, replacing that noisy $2k back-up generator.

Utilities will pay for the benefits these devices will bring: VAR support, load shifting, Demand Response, etc


Well, we are happy to finally see SCE moving in the right direction toward distributed energy. A load shifting ESS is a small step, but a step never-the-less. What utils need to get comfortable with is the idea that they have a whole new product line with CHP, and solar/ESS systems.

IF the utils invest in manufacturing/installing/maintaining distributed energy systems - they create an entire new source of revenue. They alleviate the burden on their grid. They provide new JOBS and income to local economies.

IF utils partner with a manufacturer (Honda, GE) who build CHP systems and contract to install and maintain those systems - they have a new business. This LG ESS is a tiny first step. But it should lead to bigger steps that expand the options for home/residential energy systems.

Combine a southern Cali PV/ESS with an NG fired 10kW micro-turbine genset - you get a lot of load shifting, Demand Response ability. Good first steps.


Can someone explain what Li-ion LG Chem has 'above and beyond' all other companies?

They seem to have nailed more contracts than Bush supporters have 'no bid' contracts.


"The LG Chem cells use a proprietary lithium manganese spinel (LiMn2O4) material for the cathode with additives to improve calendar life under high temperature conditions"

Apparently they are durable, they will also have a 650,000 square foot plant in Michigan.

Tim Duncan

At EstorGuy,
Calif government is BROKE and sucking up Fed dollars left and right. In the big pixture, they are shifting their nonsense onto the nataional tax payer. Their industrial economic base is being pushed out left and right to lower cost, less regulated sites. Don't ask me to pay for this unsustainable economic nonsense. Build some base load capability and pay for it yourselves like everyone else.



You are wrong there. The money for this program, like all other pilot or research programs California's public utilities run, comes from money collected from the utility rate payers, not the state's general fund. Therefore it is not connected to the state budget and you (as a federal tax payer) are not paying for it. Other states have similar programs for small distributed storage. Check out AEP's community storage project:

That one is much bigger (and more expensive) than SCE's project

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