November 25, 2024

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LG Energy Solution Vertech energy storage system in Texas (LG Energy Solution)

LG Energy Solution said Thursday its US subsidiary has landed 10 power grid supply deals in the fast-growing US energy storage system market since its launch last year.

The projects' total energy storage capacity amounts to 10 gigawatt-hours, the firm said.

Based in Texas, LG Energy Solution Vertech provides energy storage system integration services ranging from business solutions to installation, maintenance and repair.

The venture was set up in February 2022 after the battery manufacturer acquired Massachusetts-based NEC Energy Solutions.

It also plans to provide its self-developed Aeros energy management system that can secure and monitor data on ESS operations -- battery, equipment and operating environment -- to every site where the ESS is installed.

The battery maker noted the ESS market in the US will gradually expand, citing data from the US Energy Information Administration that renewable energy is to account for 44 percent of the power grid in the country by 2050. The would mean the share more than doubling from 2021's renewable generation of 21 percent, according the the March 2022 report.

The US ESS market is expected to expand from $600.9 million in 2019 to $8.26 billion in 2025, according to the Energy Information Administration and market tracker Statista.

“The fact that LG Energy Solution was selected (as a supplier) for (power grid) project developers in the US proves the company’s vertical integration strategy of offering an all-in-one solution including the system integration is well-received,” said LG Energy Solution Vertech CEO Park Jae-hong, in a statement.

“It is a big plus for the (ESS) market that a financially stable company offers an integrated system including full warranty coverage.”

In September this year, LG Energy Solution participated in RE+ 2023, the largest renewable energy event in the US. During the event, it shared four key business strategies: operating a large-scale manufacturing plant for ESS batteries in Arizona, strengthening its battery supply chain, securing cutting-edge lithium iron phosphate battery technology and upgrading its system integration capabilities.

In June, the company unveiled Enblock, ESS for homes, at the Electrical Energy Storage Europe 2023 international exhibition in Munich. It supplied 1.2 gigawatt-hours of ESS batteries – at the largest scale – to US power generation company Vistra in 2021.

By Byun Hye-jin  (hyejin@heraldcorp.com)