- PRESS RELEASE -

Carrickfergus, Northern Ireland, 7 January 2016 – AES UK & Ireland today announced the completion of the Kilroot Advancion® Energy Storage Array, located in Kilroot Power Station in Carrickfergus, Northern Ireland. The Array provides 10 megawatts (MW) of interconnected energy storage, equivalent to 20 MW of flexible resource, and is the largest advanced energy storage system in the United Kingdom and Ireland, and the only such system at transmission scale.  The Array uses the Advancion 4 energy storage solution, a complete, battery based alternative to peaking power plants that provides a dependable, smart and cost-competitive means to support a reliable, low carbon electricity system for the Northern Ireland economy.

The Kilroot Array will enhance grid reliability by providing fast response ancillary services like frequency regulation, as part of the system operator’s existing Harmonised Ancillary Services system. With more efficient balancing of supply and demand, energy storage will lower costs to consumers, unlock the value of existing renewables, and improve the security of supply in the All Ireland Electricity System, as Robin McCormick, General Manager of the System Operator Northern Ireland (SONI) explains: “Integrating battery storage solutions onto the system is an important development which should bring real benefits to customers across the island.  As the transmission system operator, this innovation provides a significant learning opportunity; we will assess the role that battery storage will play in the increasingly diverse portfolio of generation sources, as we continue to ensure a safe, secure, reliable and cost efficient electricity supply throughout Northern Ireland.”

The Array utilises over 53,000 batteries, arranged in 136 separate Nodes for increased reliability, and the patented Advancion control system, which responds to grid changes in less than a second. Advancion 4 is among the most proven energy storage platforms available, resulting from AES’ more than eight years of commercial experience operating grid-connected energy storage.

The Array represents a significant investment in the future of Northern Ireland’s energy infrastructure by AES, and is a fully commercial project which creates no additional cost for consumers. Separately, Innovate UK Energy Catalyst is providing funding, in partnership with Queen’s University Belfast, to demonstrate the full capabilities of energy storage by analysing the impact of this array.  The effort will be led by a consortium including AES, Queen’s University Belfast, SONI, NIE Networks and the Utility Regulator. Queen’s University will publish an independent report on the potential of the technology to benefit the All Island Electricity Market.

AES UK & Ireland President, Carla Tully said, “Since 1992, AES has helped to keep the lights on in Northern Ireland and we have a history of providing our customers with innovative solutions. Our investment in the largest battery energy storage array on these islands represents an important advancement in providing safe, reliable, cost effective and emission free power.”

John Zahurancik, President of AES Energy Storage said, “As the UK and the Republic of Ireland look for innovative ways to strengthen the electric grid while reducing costs and system-wide emissions, we’re pleased to deliver Advancion as a part of the solution.”

The 10 MW array is a crucial first step towards a planned 100 MW energy storage array adjacent to Kilroot Power Station, which would be among the largest in the world. The 100 MW installation, equivalent to 200 MW of flexible resource, has been independently estimated as being able to provide £8.5 million in system savings per annum and the equivalent of 123,000 tonnes of CO2 eliminated each year, by displacing out of merit thermal back up plant and facilitating fuller integration of existing renewables. Globally, AES owns and operates the world’s largest advanced energy storage fleet, with 384 MW in operation, construction, or late stage development.

About AES UK & Ireland

AES UK & Ireland is the owner and operator of Ballylumford and Kilroot Power Stations in Northern Ireland. AES has operated in Northern Ireland since 1992. AES won the 2015 Allianz Arts & Business 2015 Business of the Year, and is the only company to achieve silver accreditation in Business in the Community NI’s CORE corporate sustainability certification. To learn more, please visit www.aesukireland.com or @aes_ukireland on Twitter.

About AES Energy Storage Solutions

AES is a leader in commercial energy storage solutions, which improve flexibility and reliability of the power system, and provide customers with a complete alternative to traditional peaking power plants.  The company’s Advancion® 4 energy storage solution is available for sale to leading utilities, power markets, and independent power producers, and AES can manage installations from concept to operation with a market-proven solution that integrates best in class battery and power conversion technologies. AES introduced the first grid-scale advanced battery-based energy storage solution in commercial operations in 2008 and operates the largest fleet of battery-based storage assets in service today. AES has a total of 384 MW of interconnected energy storage, equivalent to 768 MW of flexible resource, in operation, construction or late stage development in six countries. To learn more, please visit www.aesenergystorage.com or @aes_es on Twitter.

About AES

The AES Corporation (NYSE:AES) is a Fortune 200 global power company. We provide affordable, sustainable energy to 18 countries through our diverse portfolio of distribution businesses as well as thermal and renewable generation facilities. Our workforce of 18,500 people is committed to operational excellence and meeting the world’s changing power needs. Our 2014 revenues were $17 billion and we own and manage $39 billion in total assets.  To learn more, please visit www.aes.com. Follow AES on Twitter @TheAESCorp.

Safe Harbour Disclosure

This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, those related to future earnings, growth and financial and operating performance. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES’ current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to, our accurate projections of future interest rates, commodity price and foreign currency pricing, continued normal levels of operating performance and electricity volume at our distribution companies and operational performance at our generation businesses consistent with historical levels, as well as achievements of planned productivity improvements and incremental growth investments at normalized investment levels and rates of return consistent with prior experience.

Actual results could differ materially from those projected in our forward-looking statements due to risks, uncertainties and other factors. Important factors that could affect actual results are discussed in AES’ filings with the Securities and Exchange Commission (the “SEC”), including, but not limited to, the risks discussed under Item 1A “Risk Factors” and Item 7: Management’s Discussion & Analysis in AES’ 2014 Annual Report on Form 10-K and in subsequent reports filed with the SEC. Readers are encouraged to read AES’ filings to learn more about the risk factors associated with AES’ business. AES undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Any Stockholder who desires a copy of the Company’s 2014 Annual Report on Form 10-K dated on or about February 25, 2015 with the SEC may obtain a copy (excluding Exhibits) without charge by addressing a request to the Office of the Corporate Secretary, The AES Corporation, 4300 Wilson Boulevard, Arlington, Virginia 22203. Exhibits also may be requested, but a charge equal to the reproduction cost thereof will be made. A copy of the Form 10-K may be obtained by visiting the Company’s website at www.aes.com.

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