Waltham, Mass., December 20, 2011 — A123 Systems, a developer and manufacturer of Nanophosphate lithium ion batteries and systems, will supply a grid battery system to Maui Electric Co., a utility serving residents and businesses on the islands of Maui, Lanai and Molokai in Hawaii.

To be installed at MECO's Wailea Substation on Maui, the advanced energy storage system will be designed to deliver 1 MW of power for a full hour to reduce the peak energy load on one of the substation's transformers, which is expected to increase grid stability and improve power quality to help MECO meet the objectives of the Maui Smart Grid Project.

Led by MECO and the Hawaii Natural Energy Institute, the Maui Smart Grid Project is designed to help MECO demonstrate and evaluate new technologies for operating the electric grid more efficiently. The project also aims to help residents better manage and reduce energy consumption during periods of high demand.

Specific objectives include reducing distribution circuit peak load, minimizing emissions, enabling greater use of renewable energy sources and improving power quality and grid stability.

A123's GBS storage systems are designed to provide a complete, turnkey solution to help MECO meet these objectives by providing a number of services in addition to peak-load shifting, including regulating voltage fluctuation, reactive power support and relieving wind curtailment.