The companies will jointly develop and finance the storage systems for Edison International’s subsidiary, Southern California Edison (SCE).

The storage systems will be constructed on commercial and industrial customer sites across the West Los Angeles Basin as part of SCE’s 2013 local capacity requirement solicitation.

SCE will buy capacity under a 10-year contract and utilize the stored power, in part, to offset the energy, once generated by nuclear and gas-fired facilities.

The company is planning to add 2.2GW of cleaner resources, including energy storage and renewables by 2022.

SunEdison’s yieldco unit TerraForm Power will acquire the energy storage systems once they start operations.

The first fleet of energy storage systems is anticipated to start commercial operation next year in Irvine, California. Plans include building 200 megawatt hours of battery storage capacity in the next two years.

SunEdison general manager of Advanced Solutions Tim Derrick said: "AMS’ energy storage solutions are truly ground-breaking. With these systems, the utility will for the first time be tapping into energy stored by its own customers to provide grid support during times of high demand."