The partnership between Tesla Energy and Advanced Microgrid Solutions (AMS) recently won yet another contract to install energy storage in California. This time, AMS will be developing a system for Morgan Stanley’s One Maritime Plaza skyscraper in San Francisco.

The company will install 1 MWh of energy capacity with Tesla Powerpacks inside the building in order to reduce its energy demand and consequently lower costs, while increase grid and building resiliency.

The project is only the latest in Tesla’s supply agreement with Advanced Microgrid Solutions. Under the contract, Tesla will supply AMS with up to 500 MWh of energy storage.

AMS generally designs, builds and operates the project, while Tesla supplies the battery packs – primarily Powerpacks due to the size of the projects.

The two companies recently won a contract for 12 MWh with Cal State University and another one for several office buildings in Irvine.

The project at One Maritime Plaza is expected to be completed by January 1, 2018.

Here’s the full press release:

Landmark Skyscraper One Maritime Plaza to Become San Francisco’s First Hybrid Electric Building® Advanced energy storage system will improve efficiency, lower costs and deliver cleaner power for prominent office building

SAN FRANCISCO, June 28, 2016 /PRNewswire/ — Advanced Microgrid Solutions (AMS) today announced that it has been selected to transform San Francisco’s distinguished skyscraper, One Maritime Plaza, into the City’s first Hybrid Electric Building® using Tesla Powerpack batteries. The groundbreaking technology upgrade will lower costs, increase grid and building resiliency, and reduce the building’s demand for electricity from the sources that most negatively impact the environment. Building owner Morgan Stanley Real Estate Investing hired SF-based Advanced Microgrid Solutions, to design, build and operate the project. The 500 kilowatt/1,000 kilowatt-hour indoor battery system will provide One Maritime Plaza with the ability to store clean energy and control demand from the electric grid. The technology enables the building to shift from grid to battery power to conserve electricity in the same way a hybrid-electric car conserves gasoline. The energy storage system at One Maritime Plaza will reduce the building’s peak energy demand by as much as twenty percent. In California, peaker plants – power plants that run only when there is a high demand for electricity – account for approximately fifteen percent of the state’s power fleet. These plants are by design the least efficient fossil generators and, when they do run, produce more air pollution and greenhouse gas emissions than any other type of fossil generation. “As a San Francisco-based company, we are thrilled to partner with Morgan Stanley to bring best-in-class storage and software technology to the City,” said Susan Kennedy, chief executive officer of AMS. “Hybrid Electric Buildings® allow forward-looking companies like Morgan Stanley to help build tomorrow’s energy grid.” AMS and the San Francisco Public Utilities Commission (SFPUC) are in discussions to apply battery-enabled bill savings from the first year of operation of the One Maritime Plaza installation toward other potential storage projects contemplated by the agency. “For a 100% greenhouse gas-free electric utility like the SFPUC, battery storage offers an unparalleled way to bolster the electricity resilience of critical facilities around the City,” saidBarbara Hale, Assistant General Manager for Power at the San Francisco Public Utilities Commission. “We look forward to collaborating with One Maritime Plaza and Advanced Microgrid Solutions so we can begin to pilot battery storage solutions with key SFPUC customers.” The project is expected to be completed by January 1, 2018.

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