Beacon Power Poised for Growth One Year After Acquisition

Beacon Power Poised for Growth One Year After Acquisition 
TYNGSBORO, MA   -- (Marketwired) -- 04/02/13 --  Beacon Power, LLC,
the new company created when Rockland Capital acquired the assets of
Beacon Power Corporation one year ago, has made significant progress
-- both technical and operational -- and is well-positioned for
continuing growth. The company is the world's leading manufacturer of
grid-scale flywheel energy storage systems and continues to
strengthen its leadership position as a provider of clean,
emissions-free frequency regulation services. 
Stephentown flywheel plant delivering consistently high performance
Beacon's industry-first 20-megawatt (MW) frequency regulation plant
in Stephentown, New York, began full commercial operations in June
2011, and its performance has been exceptional -- with no material
technical issues since acquisition. Overall plant availability has
been 97%, including 100% availability over the last four months.  
Based on real-world data, the Stephentown plant's 200 flywheels have
performed more than 4,000 full charge/discharge cycles per year --
which is a hallmark of Beacon's flywheel technology. Their fast and
accurate response to regulation control signals as they continuously
recycle electricity has resulted in greater than 95% accuracy. This
precision and fast ramp rate far surpasses that of fossil-fuel
generators -- the most common method of frequency regulation.  
Barry Brits, Beacon's CEO, said, "High reliability, low operating
costs, and exceptionally robust cycle life that can be sustained for
20 years without degradation -- these are defining characteristics
that reinforce the value proposition of Beacon flywheels. They are
the best resource available for correcting unpredictable, real-time
supply and demand changes on electricity grids, and they have proven
their durability and reliability with more than three million
flywheel operating hours to date." 
Restarting manufacturing, reinvesting in the future
Beacon restarted manufacturing operations at its Tyngsboro,
Massachusetts, facility in December 2012, and flywheels are once
again in commercial production. Also in December, the company began
construction of its next 20 MW frequency regulation facility, in
Hazle Township, Pennsylvania. The initial 4 MW will be operational
there in September 2013, with the plant expected to reach full
commercial operation by mid-2014.  
Beacon's owners, Rockland Capital, performed a rigorous investment
analysis prior to moving forward with construction of the second
plant. Scott Harlan, Managing Partner at Rockland Capital, said, "We
are very excited to have begun work on the Hazle project, which will
help improve system-wide efficiency on the PJM power grid. At 20 MW
it will be one of the largest fast-response energy storage resources
in that market." 
Refining the economics and developing profitable markets
Following the acquisition, Beacon focused on strengthening the
economic case for owning and operating flywheel plants for frequency
regulation. For several years the company has been a leading advocate
of pay-for-performance tariffs in deregulated electricity markets.
Those efforts led to new market rules that are expected to provide
Beacon fair compensation for its regulation services, while
decreasing the overall cost to consumers for the regulation services
required by the market. At the same time, the company implemented an
aggressive internal cost reduction program and, where necessary,
invested further to realize opportunities.  
Beacon CEO Brits says, "Strong economic fundamentals and providing
value to our customers drives our business. We have the lowest
cost-per-cycle storage technology available for frequency regulation
-- and cycles are important because they quantify the frequency
correction provided. Grids are volatile and the goal is increased
efficiency. The most useful resource is one with high cycle life that
can respond continuously and repeatedly at its full output range to
smooth out large amounts of variability, which is exactly what Beacon
offers." 
About Beacon Power, LLC
Beacon manufactures flywheel-based energy storage solutions for
grid-connected and off-grid applications. The company has the largest
composite flywheel in commercial operation at 25kWh, and the largest
operational grid-tied flywheel energy storage facility at 20MW.
Beacon's systems integration team works with customers to optimize
the benefits of fast-responding energy storage in a wide range of
applications -- from large-scale grid-connected plants to smaller
micro-grid, smart grid and distributed off-grid uses. Beacon's
headquarters and manufacturing facility are based in Tyngsboro,
Massachusetts. For more information visit www.beaconpower.com.  
About Rockland Capital
Rockland Capital, a private equity firm founded in 2003, is focused
on the acquisition, optimization and development of companies and
projects in the North American power sector. The firm manages
Rockland Power Partners and Rockland Capital Energy Investments and
has offices in Houston and New York. For further information visit
www.rocklandcapital.com.  
Contact information
Barry Brits 
CEO
brits @ beaconpower.com
978-661-2024 
Gene Hunt
Director of Communications
ehunt @ beaconpower.com
978-661-2825 
Note: Photos and illustrations available upon request. 
 
 
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