SOURCE: SAIL Venture Partners

SAIL Venture Partners logo

January 14, 2011 07:00 ET

SAIL Announces First Sale of Xtreme Power's Dynamic Power Resource™ to a Utility

KAUA'I, HI--(Marketwire - January 14, 2011) - SAIL Venture Partners announced that its portfolio company, Xtreme Power, signed a contract today with Kaua'i Island Utility Cooperative (KIUC), Inc for the utility to purchase a 1.5 MW utility-scale battery storage system. Xtreme Power's Dynamic Power Resource™ (DPR™) will be installed at the Koloa substation. This storage system will help mitigate the effects of a 3 MW solar photovoltaic (PV) project, which will also feed into Koloa.

In support of KIUC's commitment to incorporate greater amounts of renewable energy, the organization sought solutions to effectively integrate large, intermittent generation resources into its system. The utility has determined that Xtreme Power's utility-scale storage technology can stabilize intermittent resources, such as solar PV, and is consistent with its strategic goals and initiatives.

"KIUC is presented with a unique set of challenges in terms of grid stability," said John Cox, Senior Electrical Engineer and Project Manager at KIUC. "The advanced capabilities of Xtreme Power's technology provide support in this capacity while promoting increased renewable energy generation on Kaua'i."

Solar PV systems are subject to output variability due to factors such as clouds passing over an installation. The addition of the battery storage system (DPR™) will allow KIUC to smooth the power output from PV projects by providing real and reactive power, compensating for sudden output fluctuations in a matter of microseconds. This rapid response will enable KIUC to better control the installation's ramp rates and maintain a predictable flow of power from the solar farm to the electrical grid. The battery storage system (DPR™) will also respond to other system events, such as loss of generation and system faults, which will help KIUC to analyze the effects and benefits of expanding storage in the future.

"With this project, Xtreme Power will once again demonstrate the ease of cost-effectively utilizing abundant, clean energy without a major infrastructure overhaul," said Carlos Coe, CEO of Xtreme Power. "We commend the Kaua'i Island Utility Cooperative for its progressive thinking and intelligent measures to overcome variability challenges when implementing renewables into Kaua'i's grid."

Walter Schindler, an Xtreme Power Board member and a Managing Partner of SAIL Venture Partners, stated, "The Kaua'i Island Utility Cooperative project marks Xtreme Power's first sale directly to a utility. We believe this will set an example for other utilities that employ renewable energy to see the tremendous benefits of battery storage." SAIL is an investor in Xtreme Power.

The project is planned for completion in the third quarter of 2011. At that time, this will bring the total megawatts of Dynamic Power Resources installed in Hawaii to nearly 30, with projects on Kaua'i, Maui, Lana'i and Oahu.

About Xtreme Power
Based in Kyle, Texas, Xtreme Power engineers, manufactures and operates integrated power management and energy storage systems for use in renewable energy and micro-grid applications. Xtreme's Dynamic Power Resource™ combines the large-scale storage capabilities of the company's proprietary PowerCell™ technology with its micro-second controls and high-efficiency power electronics, creating a comprehensive solution to the intermittency and variability challenges facing utilities and independent power producers looking to implement clean energy to the electrical grid. By providing scalable systems engineered specifically to the needs of its customers, Xtreme Power offers a safe and cost-effective approach to dramatically increase the feasibility of renewable energy. Xtreme Power is backed by investors SAIL Venture Partners, Bessemer Venture Partners, The Dow Chemical Company, Fluor Corp., BP Alternative Energy, Dominion Resources, POSCO ICT, and SkyLake & Co.

About KIUC
As a cooperative organization KIUC joins over 930 other electric co-ops serving more than 36 million members in 47 states. They operate two electric generating facilities in Port Allen and Kapaia, produce and purchase hydroelectric generated power and have a strong commitment towards additional renewable resources. Like all electric cooperatives, KIUC actively promotes the seven cooperative principles including a strong commitment to community and to its member/owners.

About SAIL Venture Partners
SAIL Venture Partners LLC (www.sailvc.com) is a cleantech investment firm with unique global insight into technologies, markets and opportunities. Drawing on decades of experience in cleantech and in growing successful businesses, the SAIL team invests in emerging cleantech companies with proven technologies, visionary leadership, demonstrated revenue and profit growth potential. SAIL has invested in a number of today's leading global cleantech companies, including: Xtreme Power, Ice Energy, The Cleantech Group, Enerpulse, Dow Kokam, SNTech Motors, M2 Renewables, and WaterHealth International. For more information, visit www.sailvc.com.

Contact Information