Stem Inc (STEM)

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Stem’s Athena® Software Selected by Available Power to Optimize Up to 2GWh Energy Storage Portfolio in ERCOT
February 24 2022 - 08:30AM

Value of award expected to exceed $500 million across the project portfolio

Partnership provides Stem exclusive rights to 100 standalone energy storage projects in Texas

Stem, Inc. (“Stem” or “the Company”) (NYSE: STEM), a global leader in artificial intelligence (AI)-driven energy storage software and services, today announced the Company has been selected to provide smart energy storage solutions in Texas to Available Power (“AP”), a developer that designs, develops, and deploys distributed energy resources and microgrid systems for commercial and industrial real estate.

This strategic partnership gives Stem exclusive rights to provide its proprietary Athena® smart energy storage software to energy storage systems at 100 front-of-the-meter (FTM) sites throughout the state of Texas. The project portfolio is expected to have a value of more than $500 million and will be completed in phases, beginning with deployment of the first 20 systems by early 2023. Together, Stem and AP will be providing the state grid, operating under the Electric Reliability Council of Texas (ERCOT), with an additional one gigawatt (GW), or two gigawatt-hours (GWh), of flexible electric power for 20 years.

ERCOT is responsible for delivering 90 percent of the state's electric power to more than 25 million people throughout Texas. The market for energy storage in ERCOT is expected to grow more than 10 GWh over the next five years as renewable energy adoption increases and the state prioritizes grid resilience.

AP will be facilitating the entire scope of work on the projects, from development of the energy storage sites, to marketing and selling the assets as they reach operation. Stem will provide the battery storage hardware at each site, incorporate Athena BidderTM to optimize the bidding and dispatch of the systems (based on real-time market dynamics), and organize the portfolio of energy storage sites into a single, integrated energy intelligence platform. The full scope of Stem’s software and services also includes revenue modeling, battery hardware consulting, and development support to successfully complete these projects.

John Carrington, Chief Executive Officer of Stem, commented, “This partnership with Available Power showcases Stem’s ability to support developers across the project lifecycle and enable best-in-class management of large portfolios of energy storage projects. Our market-leading Athena® software, advanced BidderTM application, system operating knowledge, and ability to rapidly deploy projects will help Available Power quickly go to market and generate exceptional value.”

Daniel Gregory, Chief Executive Officer of AP, added, “We chose to partner with Stem for their unparalleled energy expertise and supply chain strength to support our range of needs from revenue optimization and cost savings to navigating energy markets. Their Athena® software brings us the unique ability to drive substantial operational value in our growing energy storage portfolio, and we look forward to working on these projects together.”