
 AES Energy Storage As  ordered by a computer, the AES Energy Storage plant in Johnson City,  N.Y., 
absorbs or delivers energy to the grid at intervals of five  seconds with thousands of lithium-ion batteries.   "Frequency regulation," an esoteric but increasingly important element of the electric system, is getting a new competitor.
 Frequency regulation is as critical as voltage control or generating  capacity but is not something that most customers notice, at least until  it goes catastrophically wrong. It means fine-tuning the system to keep  supply and demand in balance.
 The problem is that the North American electric grid is supposed to  run at 60 cycles, meaning that the electrons change direction 60 times  each second. In practice, if electricity supply and demand are not  perfectly matched at every instant, the system runs just a little bit  too fast or too slow. 
 If the pace strays too far from 60 cycles per second, equipment like  pumps and motors run too fast or too slow and a variety of equipment  will shut down to avoid getting damaged. A sharp decline in frequency  was one reason that the blackout of August 2003 spread as far as it did.
  
 Traditionally utilities maintained the balance on a gross level by  adding or subtracting generation and then fine-tuning by running a steam  turbine, usually at a plant that runs on coal, a little faster or a  little slower. Those turbines, which have a great deal of inertia at any  given moment, could deliver or supply large amounts of energy promptly.  But as more electricity generation has shifted to gas turbines, which  resemble jet engines and have less inertia, or to wind generators, which  tap the fickle breeze, the fraction of plants that can accomplish  frequency control has declined. 
 But on New Year's Eve, AES Energy Storage,  the subsidiary of a company based near Washington that operates power  plants around the world, opened a plant in Johnson City, N.Y., near  Binghamton, that sells frequency regulation. It absorbs or delivers  energy at intervals of five seconds, as ordered by a computer at the New  York Independent System Operator, which runs the state's grid. 
 It does so with thousands of lithium-ion batteries, which AES  selected for the same reason that electric vehicle manufacturers like  them: they have the ability to absorb or deliver large amounts of  current promptly and can change direction easily. The batteries were  built by A123, which also builds batteries for automobile use.
 Batteries are a better bet than turbines, said John M. Zahurancik,  vice president of operations and deployment at AES. "You're not revving  these big engines up and down, you're running a device that doesn't care  if it's run up and down,'' he said.
 Meanwhile, in Stephentown, N.Y., near Albany, Beacon Power is working on a plant that will do the same work but while  using flywheels. 
  Providing frequency regulation from coal plants adds somewhat to  plants' emissions; but using a flywheel or a battery is cleaner,  proponents say. The flywheel system loses about 15 percent of the  energy, and the batteries lose about 10 percent, the companies involved  report. 
 The AES project has a federal loan guarantee of $17.1 million, which  is close to 80 percent of its cost, according to Mr. Zaharuncik; he  declined to give a precise number. The project will eventually be able  to absorb or deliver 20 megawatts for a period of up to 15 minutes,  although typically it is making much smaller adjustments in each  direction, he said.  
 While the technology could eventually be used to store energy for use  at different times of day – say, capturing energy from wind machines at  night, when electricity is in surplus, and delivering it during the  day, when prices are higher – the regulation market looks like a surer  route to profit for the moment. The AES project will eventually use  800,000 batteries, each roughly the size of a D cell, installed in  53-foot shipping containers. 
 Many places could use frequency regulation, but New York State is  drawing these early plants because its system provides for payment to  third-party providers of the service. 
 Wind and solar plants "introduce some additional variability that you  don't have with traditional thermal units,'' Mr. Zaharuncik said. With a  system that has a lot of renewable energy generators, he explained,  "you need some other kind of resource that complements it. ''