As we introduce more renewable generation into our energy mix, the need to invest in energy storage grows. Energy storage can help smooth the flow of power as generation from intermittent resources such as wind and solar varies.
The recent reduction in cost of commercially available energy storage technologies, particularly those leveraging Lithium-ion technology, has created an increased interest across our industry for proposed deployments of energy storage in the grid. AEP has seen a significant increase in project proposals from developers to pair renewable energy generation (solar or wind) with energy storage and connect to the AEP Transmission system.
We are also investigating and actively pursuing the application of Bulk Energy Storage Systems as transmission assets in situations where they can help to cost-effectively maintain or improve the reliability of the transmission system, compared to traditional options of building new transmission lines or stations. An example of this is the proposed installation of a 2 MW storage device adjacent to the Middle Creek station in Kentucky, to effectively take the place of a transmission line rebuild. Energy storage projects are being considered on the distribution system as well.
Storage technology supports local reliability and demand response for our customers, and it is integrated into our distribution and resource planning processes. For example, batteries are a relatively flexible solution that can be mobilized and relocated to meet changing demand in the system. We have pilot projects in AEP Ohio to help improve the reliability of sections of circuits. We are evaluating similar projects throughout most of our operating companies.