The 53MW project, to be implemented by SCPPA member utilities throughout Southern California, is expected to permanently reduce California’s peak electrical demand by shifting as much as 64GWh of on-peak electrical consumption to off-peak periods every year, reducing exposure to peak power and improving the reliability of the electrical grid.

This agreement also allows SCPPA to enable the expansion of this storage system for other municipal utilities and agencies in Southern California.

Jeffrey Byron, commissioner of the California Energy Commission, said: “This project includes all of the aspects we look for: managing electrical consumption, improving system efficiency, reducing greenhouse gases, and creating regional jobs for our communities. SCPPA is to be applauded for showing how Californians are taking the lead to deploy innovative solutions to meet our energy demands.”

Ice Energy claims that its energy storage system leverages the higher efficiencies associated with generating and transmitting power off-peak, storing it at thousands of distributed locations, and employing the smart grid to dispatch the energy during times of peak demand.

Frank Ramirez, CEO of Ice Energy, said: “SCPPA’s selection of Ice Energy’s solution is truly a win-win for all stakeholders. Member utilities can better meet their goals to reduce peak demand, ratepayers are protected against the rising costs of peak power, and the growing supply of clean off-peak wind generation can be more reliably integrated.

“SCPPA and its members have shown extraordinary leadership at the forefront of reshaping the future of our energy system, forever changing the way we deliver and consume energy in this country.”

Installation of the Ice Energy storage systems will begin in the first half of 2010, with deployment scheduled over two years.