According to a recent announcement, Stem, Inc. is now the leader in the industry for software-driven energy storage. Stem’s intelligent energy storage with advanced predictive analytics software helps commercial businesses reduce their electricity bills automatically and manage their daily energy use more efficiently. Stem’s systems use historical data, real-time data, and weather forecasting to predict how a company’s electrical load will fluctuate throughout the day. The batteries discharge during peak times to reduce demand charges thus saving a business money on their electrical bills.
Stem disclosed that they have over 68 MWh worth of operating systems that are under contract and over 150 software-driven energy storage systems which are live throughout California and Hawaii. These storage systems use batteries from Samsung, Panasonic, and Tesla, such as their Powerpacks. With 40% more installations than their other industry leaders and well-known companies such as Wells Fargo, Safeway, and Whole Foods signing up, Stem’s future seems bright.
In addition to this, Stem has recently joined forces with Mithril, a leading technology growth investor, which is providing Stem with $15 million in follow-on funding, bringing Stem’s Series C raise to $68 million. Stem’s other investors include industry leaders such as RWE of Germany and Japan’s Mitsui.
You can’t have a truly smart grid until you have smart storage, and you can’t have smart storage without smart software. Stem’s technology creates a self-healing grid that increases efficiency and resilience through real-time co-optimization between generators, power users, and utilities. – Ajay Royan, Co-Founder and Managing General Partner of Mithril
Utilities and grid operators are working closely with Stem to integrate its systems into their capacity programs. The utility can use these systems at their customer sites for rapid response and controlled distribution. Clean capacity resources are an important aspect for balancing a fluctuating and unpredictable electrical grid. Stem’s utility partners include: Southern California Edison (SCE), San Diego Gas & Electric (SDG&E) and the Hawaiian Electric Company (HECO). As more and more technologies, such as rooftop photovoltaic (PV) systems and electric vehicle (EV) charging ports, are interconnected it is fundamental to manage any excess or deficits for electricity based on demand. As Stem’s CEO, John Carrington, points out, “storage as a service’ [is becoming] a critical component of global energy distribution and consumption,” and Stem’s software-driven energy storage systems are sparking some interest.
(Disclosure: I am an active member of the energy community in Hawaii. As part of this, I work full-time with Stem, Inc. in their efforts.)