Dive Brief:

LG CNS, a subsidiary of LG Corp., has signed a $43 million contract for two energy storage facilities on Guam.

Under the agreement, LG will build two projects for the Guam Power Authority (GPA), one a 24 MW, 6 MWh project and the other 16 MW, 16 MWh facility.

LG will operate and maintain the projects under a 25-year contract once they come online, targeted for a year from now.

Dive Insight:

Isolated and island communities have often been cited as among the top spots for energy storage. Guam, a U.S territory in the Pacific Ocean nearly 6,000 miles from San Francisco, qualifies on both fronts.

The LG CNS projects are being built in Agana and Talofofo. They are designed to reduce the intermittent power outages that the Guam Power Authority is experiencing as a result of increasing solar power penetration as the island moves toward its renewable portfolio standard goal of 25% renewables by 2035.

The 24 MW Agana storage facility will be used for frequency regulation, and the 16 MW Talofofo installation will be connected to an existing solar farm to aid in integrating the solar output to the grid.

LG sees Guam as a stepping stone for expansion into the markets in Hawaii, as well Australia Southeast Asia and the U.S. mainland.

“This is GPA’s phase one project, and we are now in a strong position for more success in upcoming opportunities,” Tae Seok Ha, vice president of smart energy at LG CNS, said in a statement.