Austin Energy Taps Stem for Aggregated Energy Storage

Stem expands into Texas

MILLBRAE, Calif.–(BUSINESS WIRE)–Stem
Inc., the global leader in commercial-scale intelligent energy
storage services, is developing an aggregated fleet of customer-sited
energy storage operating in the Lone Star State. In so doing, Austin
Energy will offer its commercial customers energy storage options and
help them reduce energy costs while simultaneously providing a reliable
energy storage resource for the Austin Energy grid.

The project is one phase of a larger Austin Energy grant from the U.S.
Department of Energy’s (DOE) Sustainable and Holistic Integration of
Energy Storage and Solar Photovoltaics (SHINES) program. The program’s
goal is to reduce the cost of electricity from combined solar and
storage projects to below $0.14/kWh.

In this eighth utility contract for Stem, Stem is proving how its
innovative aggregated platform can integrate solar and energy storage to
increase grid performance and reliability and enable higher penetrations
of solar PV. Austin Energy is using the Stem partnership to test new
customer offerings that result in sustainable aggregation models.

Stem’s software-driven energy storage will reduce businesses’ energy
costs by reducing their peak demand and providing them with real-time
energy management and visualization tools. Where a business has on-site
solar photovoltaics (PV) systems, Stem’s software and analytics tools
will automatically manage those customers’ use of grid-supplied
electricity against their solar production. For all customers in the
network, Stem’s proprietary software will rapidly respond to spikes in
electricity use, drawing on stored power to automatically reduce demand
charge costs without requiring operational changes or manual input from
the host.

Drawing on those same behind-the-meter energy storage systems, Austin
Energy can effortlessly call upon the systems to cost-effectively
provide instant and dispatchable grid stability to address issues like
solar generation variability and peak demand. Stem’s intelligent,
cloud-based control platform incorporates weather forecasts, historical
and real-time usage data to predict when electric use will peak at a
given site. Reducing commercial peak demand helps improve local grid
stability and distribution energy planning.

“The Austin SHINES project is another example of Austin Energy’s
commitment to using innovative technology to increase reliability and
customer value. This project will help Austin Energy learn more about
the potential benefits of integrated distributed energy resources for
broader deployment in the future, so we can maximize the value of solar
and storage integration for our customers,” said Jackie Sargent, Austin
Energy General Manager.

Initially, Austin Energy will use the fleet to test how rapidly the
resources can respond to an aggregator’s signal to dispatch and provide
grid response services. Over the longer-term, this model will illustrate
how aggregated, customer-sited energy storage systems can help Austin
Energy reduce costs associated with ERCOT coincident peaks, defer
investment in substation upgrades, and provide clean, reliable power to
its customers.

“Austin is a hub of sustainability and we are thrilled to be working
with Austin Energy on this project,” said John Carrington, CEO of Stem.
“We think all of Texas will be watching to see how aggregated energy
storage can cost-effectively deliver multiple values to customers,
utilities, and grid operators alike.”

Stem provides storage-as-a-service
and is backed by the industry’s largest project finance pool at $350
million. Stem delivers predictive analytics software to get actionable
real-time and future usage and cost data for customers to improve
overall efficiency. Customers pay a monthly subscription fee and on
average save up to two to three times what they pay for the service.

About Stem, Inc.

Stem creates innovative technology services that transform the way
energy is distributed and consumed. The company’s mission is to build
and operate the largest digitally connected energy storage network for
our customers. Our world class analytics optimize the value of
customer’s energy assets and facilitate their participation in energy
markets, yielding economic and societal benefits while decarbonizing the
grid. Headquartered in Millbrae, California, Stem is funded by a
consortium of leading investors including Angeleno Group, Iberdrola
(Inversiones Financieras Perseo) GE Ventures, Constellation Technology
Ventures, Total Energy Ventures, Mitsui & Co. LTD., RWE Supply &
Trading, and Mithril Capital Management. Visit www.stem.com
for more information.

About Austin Energy

Austin Energy, the City of Austin’s electric utility, serves more than
450,000 customer accounts and more than 1 million residents in Greater
Austin. The utility’s mission — to safely deliver clean, affordable and
reliable energy along with excellent customer service — has guided
Austin Energy in powering the community and supporting the region’s
growth since 1895. As a publicly owned utility, Austin Energy
contributes more than $105 million per year to support important City
services such as streetlights, parks, libraries and public safety. For
more information about Austin Energy, visit austinenergy.com.

Contacts

Antenna Group for Stem, Inc.
Alana Herro, 415-977-1918
[email protected]
or
Austin
Energy Corporate Communications
512-322-6514
[email protected]