Tax credits from the Inflation Reduction Act support microgrid system for Arizona datacenter
Friday 7 October 2022
Invinity Energy Systems is pleased to announce the sale of a 1.3 MWh Invinity VS3 flow battery system to Kinetic Solutions LLC (“Kinetic”) for use in a microgrid providing 24/7 power to a datacenter in Arizona, USA.
Six Invinity VS3 batteries with a total capacity of 1.3 MWh will be installed alongside 400 kWp of solar PV at a datacenter located in Arizona. Kinetic will use the Invinity battery system to operate the datacenter on renewable power 24 hours a day, 7 days a week and mitigate the effects of power outages, a frequent occurrence in the region. A deposit has been paid and manufacturing of Invinity’s batteries will commence shortly. Shipment of the battery solution is scheduled for early 2023.
Above: Solar panels generating electricity in the Mojave Desert, Arizona
Kinetic Solutions LLC has been established as a distributed energy solutions provider, specialising in renewable microgrid infrastructure for commercial and industrial sites across the U.S. including datacenters, manufacturing facilities, distribution hubs and EV charging stations.
Invinity’s vanadium flow batteries were chosen for the project due to their robustness in high-temperature environments and ability to perform long duration (4 – 24 hour) energy discharge during power outages.
“We are thrilled to be working with Kinetic Solutions on this U.S. project that showcases the advantages of vanadium flow batteries and provides a real-world example of Invinity products generating investment tax credits for our U.S. customers. This deal embodies a number of positive developments: the growing awareness of the need to power datacenters with renewable energy, an opportunity to work with Kinetic, an emerging expert in solar microgrids, and the receipt of U.S. government support for energy storage through the Inflation Reduction Act. We look forward to delivering this project and view this application as an excellent area of opportunity for similar U.S. follow-on business in the future.”
– Matt Harper, Chief Commercial Officer, Invinity Energy Systems
This sale follows a recent report published by the White House Office of Science and Technology Policy (OSTP) calling on U.S. energy regulators to review the impact of data processing plants such as datacenters on national and federal energy networks, both from a resiliency and a carbon footprint perspective.
Invinity’s battery is expected to generate Investment Tax Credits (ITCs) for Kinetic as a result of the Inflation Reduction Act, the positive impact of which Invinity noted in an announcement on 9 August 2022.