Dive Brief:

• Wal-Mart Stores has signed an agreement under which Advanced Microgrid Solutions will design install and operate energy storage systems at the retail giant’s stores.

• The initial phase of the deal calls for AMS to install 40 MWh of storage at 27 Walmart stores in Southern California.

• The storage systems are designed to allow Wal-Mart to reduce costs by reducing peak demand at its stores while providing dispatchable grid support to Southern California Edison.

Dive Insight:

Last summer AMS signed a $200 million deal with Macquarie Capital for financing to build out a portfolio of energy storage projects.

AMS’ business model has been to install storage systems for commercial, industrial, water and university customers in California, particularly the West Los Angeles Basin service territory of Southern California Edison. AMS sells demand reduction services to the commercial customers and sells the grid support services to the utility.

In the deal with Wal-Mart, AMS will deliver its systems to the retailer at no upfront costs.

“Adding energy storage capabilities to our clean energy resources reduces the capacity needed from the grid and is part of our commitment to increase reliance on renewable energy,” Mark Vanderhelm, vice president, energy, for Wal-Mart, said in a statement.

The storage agreement is just the latest in the retailer's push for clean energy. The company had 145 MW of solar installed at stores in 2016, according to a trade group report, and signed a PPA for 58% of the output of the 200 MW Logan's Gap wind farm last year, among other purchases. 

Walmart has set a target of being powered 50% by renewable resources by 2025 and eventually being 100% powered by renewables, though the company has not set a date for that target.