Consolidated Edison Solutions Inc., a subsidiary of Con Edison Clean Energy Businesses Inc., has teamed up with Johnson Controls to form a new energy storage joint venture.
Con Edison Solutions will be the majority owner and operating partner of the joint venture, while Johnson Controls will participate as a minority owner and will contribute the intellectual property that it has developed for battery management systems and controls. As part of the relationship, Con Edison Solutions has been designated as the exclusive provider of battery energy storage to customers of Johnson Controls.
“We are excited about this new relationship with Johnson Controls,” says Mark Noyes, president and CEO of Con Edison Clean Energy Businesses. “Energy storage will play a growing role in in the coming years, and this arrangement is a natural fit with our renewable energy and energy management offerings. We look forward to working with Johnson Controls to expand the market opportunities for this business.”
George Oliver, chairman and CEO of Johnson Controls, adds, “We are proud of the success we have built with our energy storage business over the past five years, and with this joint venture, we are creating even more opportunity to take advantage of growth in both the behind-the-meter and front-of-meter market.”
The battery energy storage systems developed by Johnson Controls allow for integration with building systems and employ adaptive algorithms that provide for flexible and customized applications such as peak shaving, frequency regulation, demand management and integration with renewables.
Upon commissioning, the system learns the operating characteristics of the electrical system to which it is connected and then optimizes the application for maximum economic benefit to the end customer. In accordance with the joint venture, Johnson Controls’ energy storage group employees will become part of Con Edison Clean Energy Businesses, effective immediately.
Guggenheim Securities LLC acted as exclusive financial advisor to Johnson Controls in connection with the transaction.