Energy storage start-up Stem is to supply its distributed energy storage devices to the California independent system operator (ISO) market.
Stem combines behind-the-meter energy storage and real-time data analytics for commercial and industrial business. The pilot project between California ISO and Stem provides to bring various distributed storage systems together as one resource and feed it into a demand response system. With aggregating these power resources, the company will be able to dispatch power to the Californian grid in situations of high demand, without impacting customers’ operations, according to Stem.
Stem’s customers, who decide to participate in the demand response pilot, will receive financial incentives, the company claimed.
Big Californian cities, such as San Francisco, have a demand of energy, but the space for local power plants is little. “By enabling ‘virtual power plants’ with forward-thinking industry players like the California ISO, we’re showing it’s possible to ease grid strain with no infrastructure overhauls or adverse impacts on utility customers,” said Stem CEO John Carrington. The startup claimed to be the first company to participate in the grid market with aggregated behind-the-meter energy storage.
“Stem’s distributed approach reflects the expanding scope of storage in grid operations, and marks a milestone for the storage industry,” said Janice Lin, co-founder and executive director at California Energy Storage Alliance.