Energy storage company Stem Inc. successfully bid into the California Independent System Operator (CAISO) real-time market using aggregated customer storage systems. Stem’s predictive software combined with Olivine’s technology platform can now bid and automatically dispatch stored power into the energy market.
This marks the first time that an energy storage provider has participated in real-time energy markets benefitting the electricity grid while earning revenue in California, according to a press release by Stem.
The action came under Pacific Gas and Electric’s Supply-Side Pilot, a project that enables customer-sited, demand-side resources to participate in the CAISO wholesale markets as demand response. Olivine is administering the pilot and Stem is an SSP participant.
Stem’s energy storage systems are installed in the buildings of customers like Adobe’s San Francisco campus to automatically decrease energy costs, storing energy when costs are low and deploying when high.
By participating in the CAISO market, Adobe is turning its Stem system into a revenue stream. Stem sets its price target and then its predictive software automatically accepts market bids and dispatches available power to the grid.
Stem collected extensive data during successful day-ahead bidding at six customer sites for more than a year to enhance forecasting and refine automation. Accurately forecasting customer energy use is critical to ensure systems can be used both for decreasing energy costs at the customer site as well as participating in energy markets.
Olivine’s platform serves as the critical link for distributed resources such as those managed by Stem to participate in open energy markets. The company, in addition to managing the PG&E pilot, is a scheduling coordinator and demand response provider.