Wanxiang And NEC Form Joint Venture For Grid Energy Storage In China
After selling A123 Systems’s energy storage division for $100 million to NEC, Wanxiang – as planned – announced that its wholly-owned subsidiary, Puxing Energy, formed with NEC Corporation a joint venture to pursue grid energy storage opportunities in the Chinese market.
Puxing Energy will hold 51% of shares, while NEC will take the remaining 49%. Initial business activities will begin later this year.
“Its formation is an important element of the recently announced NEC acquisition of A123 Energy Solutions, a global leader in grid-scale energy storage systems for applications ranging from grid stabilization services like frequency response to the grid integration of renewable power sources such as wind or solar. Wanxiang and NEC recognized that the best way to prosper in China’s developing market for grid energy storage is to pursue it jointly. Initially the joint venture will focus on market development of the best applications for its technology.”
A123 Energy Solutions, which is now called NEC Energy Solutions, recently commissioned two installations of its Grid Storage Solution product line in China. First is a 2 MW and second is 500 kW (both without data on amount of nominal energy). According to the press release, there is a lot of potential for energy storage systems:
“China, with its growing infrastructure needs, has some of the largest public works projects in the world related to power generation and transmission, and has installed large amounts of renewable generation that could benefit greatly from the introduction of large-scale energy storage alongside traditional grid assets.”
Weiding Lu, Chairman of China Wanxiang Holding and Chairman of Puxing Energy stated:
“With more and more renewable energies deployed in China, in which Puxing has been actively participating, the energy storage business has been driven to the front. NEC and the former A123 Energy Solutions Group have developed leading technology and successfully executed advanced project solutions in the energy storage field worldwide. Puxing is firmly committed to building a business and technology foundation to meet the growing demand of the Chinese market in partnership with NEC. We see tremendous business opportunities in the accelerated transformation of China’s development model and its closely related energy structure, a key driver for the changing market landscape throughout the value chain of China’s power sector. By this partnership with NEC as our technology and operating platform, we are well positioned to participate in these opportunities, further leveraging Wanxiang’s financial and business resources in the marketplace.”