The 53MW project, to be implemented by SCPPA member utilities throughout Southern California, is expected to reduce California’s peak electrical demand by shifting as much as 64GWh of on-peak electrical consumption to off-peak periods every year, Ice Energy said.

Bill Carnahan, executive director of SCPPA, said: “Ice Energy’s solution is a convenient and cost-effective solution for managing peak demand, and aligns perfectly with our smart grid initiatives – enabling our member utilities to deliver reliable, competitively priced electric service to their customers in a sustainable, environmentally-sensitive manner.”

“By using storage to change how – and more importantly when – energy is consumed by air conditioning, we can offset enough peak demand in the region to serve the equivalent of 10,000 homes.”

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

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.”

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