AI-Powered Energy Storage Company Closes $110M Series D Funding
Stem, Inc. today announced that Ontario Teachers' Pension Plan (Ontario Teachers'), an original Series D investor, has provided the company with a C$200 million commitment to finance the acquisition of Artificial Intelligence (AI) driven energy storage projects in the Ontario market.
Stem also announced its second close of Series D financing with an additional US$26 million investment, led by BNP Paribas and Magnesium Capital among other investors. Today's second close brings Stem's total Series D round to nearly US$110 million.
The value of energy storage lies in the brains behind the batteries and the network they comprise. Managing the timing of energy use to minimize costs is extremely complex.
‘We've created a game changing solution for a problem too complex for humans alone to solve. With Athena™, we can optimize the timing of energy use like never before,'' stated Aaron De Yonker, Head of Product Innovation at Stem.
Even with the ability to store energy, there are still thousands of calculations, forecasting simulations, and split-second decisions required to produce meaningful results. Athena™ automates this process, giving users the freedom to use energy on their own schedule without any extra work.
Using big data and machine learning, Athena™ allows customers to rapidly adapt to fluctuations in energy usage and rates, while giving utilities and grid operators a way to respond to customer and grid needs with speed and precision.
Athena™ learns and adapts, continuously increasing savings and taking advantage of new opportunities as they arise. And because Stem's subscription rates are fixed, all the additional value goes to customers.
With the expansion of corporate and project equity, Ontario Teachers' will help Stem deliver fully-financed energy storage systems for its customers in Ontario to lower their energy bills and reduce their Global Adjustment, or peak-demand costs. Stem and its partners anticipate the funds to be fully utilized within the next 12 months.
"Our project financing partnership with Ontario Teachers' enables us to further invest in Ontario and present customers with a stable, long-term offer to drive down energy consumption costs," said John Carrington, CEO of Stem, Inc.
"Moreover, Stem continues to attract top-tier international asset management interest in our ability to transform electricity grids with vast energy storage networks and our superior artificial intelligence platform," Carrington added.
Ontario Teachers' Senior Managing Director Dale Burgess commented: "Stem represents a proven first mover in the storage sector with an innovative solution that drives value for its customers. Ontario Teachers' believes there is significant value in providing a firm and competitive financing solution for industrial customers in Ontario."
Stem entered the Canadian market in January 2018 with its Global Adjustment offering—specifically designed for Ontario—which is designed for large manufacturing plants and other industrial operations that seek improved control over energy costs.
Stem has the largest project finance pool among its peers, now over US$650 million, enabling Stem's 860 energy storage systems under management across five states and three countries (U.S., Japan, and Canada).
Athena™, Stem's cutting-edge AI, is the first of its kind for customer-sited energy storage, performing real-time energy optimization that reduces onsite peak demand and enabling customers to participate via Stem's networks to access additional services and value streams.