Stem Announces the First Energy Storage Virtual Power Plants in Japan

Stem announces its first projects in Asia, entering Japan’s
nearly-300 GW electricity market

MILLBRAE, Calif.–(BUSINESS WIRE)–Stem
Inc., the global leader in artificial intelligence-driven energy
storage services, and Mitsui & Co., Ltd. (Mitsui) are building one of
the first aggregated fleets of industrial customer-sited energy storage
operating in Japan. With this network of energy storage systems, Stem
launches its international efforts and establishes a foothold in one of
the most dynamic energy markets worldwide.

The Ministry of Energy, Trade and Infrastructure (METI) endorsed Mitsui
and Stem in a competitive solicitation to develop distributed Virtual
Power Plants (VPPs) for grid benefit. Mitsui and Stem will initially
deploy more than 750 kWh across multiple sites to form a flexible and
fast-responding distributed resource. This pilot will help inform
Japan’s plans to develop aggregated demand response resources as
flexible capacity to manage the variability from increased renewable
energy resources on the grid.

Artificial intelligence (AI)-driven energy storage generates value for
Japanese commercial customers by reducing their energy costs and
providing them tools for greater control over their energy use. Stem’s
predictive analytics and machine learning, coupled with its Power
Monitor and Powerscope user interface tools, provide the data and
analytical insights needed for robust facility energy management. Stem
captures energy data on a one-second basis, dispatches on a five-minute
basis, and stores terabytes of data to the cloud.

METI will be testing deregulated services and markets as Japan undergoes
a dramatic redesign of the country’s nearly-300
GW electricity market. In the aftermath of the 2011 Fukushima
Daiichi nuclear accident, the Japanese government embarked upon the
largest deregulation of an electricity market worldwide. The
restructuring will promote renewable energy and help modernize the
Japanese electric grid by introducing competitive services and flexible
resources. Japan’s dense urban areas cannot easily accommodate
additional generation resources, making customer-sited virtual power
plants that leverage the real-time balancing and intelligence offered by
energy storage particularly essential.

“Japan is known for creating futuristic technologies that benefit
consumers and are leading to a sustainable society,” said Mitsui.
“Mitsui chose Stem because of its software intelligence and proven
network that helps customers and utilities benefit from flexible storage
assets as a technology platform for grid modernization.”

Building on its industry leadership in Hawaii, California, Texas, and
New York, Stem will use its experience with aggregated customer-sited
energy storage to increase local grid performance. In this deployment,
Stem will operate multiple sites outside of Tokyo for Mitsui and host
customers, leveraging its VPP experience and AthenaTM
artificial intelligence software. The first system is located at the
Shinwa Kankyo Recycling Center in Yoshikawa City, Saitama Prefecture, in
the service territory of Tokyo Electric Power Company.

“Mitsui selected Stem to deploy intelligent energy storage and analytics
for customer and grid benefits around the world,” said John Carrington,
CEO of Stem. “Japan is poised to dramatically scale its demand response
market, and we are proud to have Mitsui as a development partner and
investor.”

The initial sites within the virtual power plant network are the first
of planned projects in Japan for Stem and Mitsui and a base for further
Asian expansion.

About Stem, Inc.

Stem creates innovative technology services that transform the way
energy is distributed and consumed. AthenaTM by Stem is the
first AI for energy storage and virtual power plants. It optimizes the
timing of energy use and facilitates consumers’ participation in energy
markets, yielding economic and societal benefits while decarbonizing the
grid. The company’s mission is to build and operate the smartest and
largest digitally-connected energy storage network for our
customers. 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.

Contacts

Antenna Group for Stem, Inc.
Josh Garrett, +1-646-357-3445
[email protected]