Stem’s PowerBidder™ Pro Selected by Two CCAs in CAISO
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Insights
Stem's adoption of Athena PowerBidder Pro by CCAs like 3CE and SVCE indicates a strategic shift towards leveraging advanced technology to optimize utility-scale battery energy storage systems in the CAISO market. The move underscores the growing importance of AI in managing and executing trading strategies for renewable assets. Advanced price forecasting and bid optimization can significantly impact a CCA's ability to secure favorable market positions, directly affecting their operational efficiencies and cost structures.
Considering the volatility of energy markets, the ability to predict prices and automate trading strategies is a game-changer. It allows for real-time adjustments to bidding strategies, which can lead to improved financial returns. For investors, this suggests that Stem is positioning itself as a important player in the energy sector's transition to smarter, AI-driven operations. This could potentially lead to increased demand for their services, positively influencing their market share and stock valuation.
The integration of PowerBidder Pro into the operations of CCAs reflects a broader industry trend towards decarbonization and increased reliance on renewable energy sources. As battery storage technology becomes more cost-effective and essential for grid stability, the ability to optimize these assets for market bidding becomes increasingly valuable. This is particularly true in California, where state mandates for renewable energy adoption are aggressive.
From a sustainability perspective, the use of AI to enhance the efficiency of renewable energy assets aligns with global efforts to combat climate change. This technology also supports the reliability of renewable energy, addressing one of the primary concerns around renewable sources — their intermittency. By improving the predictability and reliability of renewable energy sources, companies like Stem help to increase the viability of renewables as a primary energy source, which can attract further investment into the sector.
The financial implications of Stem's software contract with 3CE and SVCE are multifaceted. On one hand, the ability to optimize bids and manage a growing portfolio of utility-scale assets can lead to direct cost savings and increased revenues for the CCAs. This, in turn, can result in more competitive pricing for end consumers, potentially leading to higher customer satisfaction and retention rates.
On the other hand, investors must consider the risks associated with reliance on AI for market bidding. While AI can provide significant advantages, it is also subject to the quality of data inputs and market unpredictability. The overall value of the CCAs' assets, as mentioned, is highly dependent on bid strategy and market conditions, which introduces a level of uncertainty in projecting long-term financial outcomes for Stem and its CCA partners.
However, the scalability of PowerBidder Pro suggests that as the CCAs expand their BESS portfolio, Stem's software could support this growth, potentially leading to economies of scale. This could enhance Stem's financial stability and provide a solid foundation for future growth, making it an attractive proposition for investors looking at long-term value creation.
Stem’s market bidding software to help drive returns and operational efficiencies across utility-scale renewable energy assets for Central Coast Community Energy and Silicon Valley Clean Energy
Stem (NYSE: STEM), a leader in AI-driven clean energy solutions and services, today announced that its Athena® PowerBidder™ Pro application has been selected by two community choice aggregators (CCAs) – Central Coast Community Energy (3CE) and Silicon Valley Clean Energy (SVCE) – to support scalable bid optimization management and help maximize the value of multiple battery energy storage systems (BESS) in the California Independent System Operator (CAISO) market. Under this software-only contract, the CCAs will use PowerBidder Pro’s advanced price forecasting and optimization features to manage and execute trading strategies for a growing portfolio of utility-scale assets in CAISO.
“Stem has been a trusted renewable energy partner in CAISO since 2015 and understands the challenges CCAs face to cost-effectively decarbonize the electricity grid and preserve reliability and resilience for their customers, said Cedric Brehaut, Vice President of Cloud Solutions at Stem. PowerBidder Pro’s configurability, cutting-edge analytics, advanced price forecasting and bid optimization, and seamless automation offers CCAs the opportunity to develop and automate customized trading strategies at scale for the benefit of the more than 14 million Californians they serve,” he added. “With our expanding footprint across CAISO and ERCOT, Stem is excited to deliver proven bid optimization software solutions to support 3CE and SVCE in their collective efforts to provide clean, reliable, and more affordable energy to their customers.”
Dennis Dyc-O’Neil, Chief Operations Officer at Central Coast Community Energy, said, “At 3CE, our highest commitment is to deliver a more reliable and renewable energy supply for the communities and business we serve across
Monica Padilla, Incoming SVCE CEO at Silicon Valley Clean Energy, said, “Energy storage has always been a key part of SVCE’s clean energy strategies as a way to diversify our energy portfolio, extend clean energy delivery, and enhance grid reliability. SVCE selected Stem’s PowerBidder Pro for its superior customization and controls that gives us the oversight we need while honoring real-time BESS constraints in CAISO and existing resource agreements. We are proud to be delivering continued value to our customers through strategic investments in the transition to a cleaner, more efficient energy supply.”
PowerBidder Pro is expected to begin supporting the CCAs in 2024. The software will manage three resource sites that will help the CCAs achieve their emission reduction goals, although the overall value of these assets is highly dependent on bid strategy, market conditions and contract constraints. Available on the Athena platform, Stem’s PowerBidder Pro will be instrumental in managing the CCAs’ storage assets currently or soon-to-be online in CAISO. PowerBidder Pro’s scalability is also expected to help the CCAs drive returns and manage risks effectively by seamlessly managing trading strategies as their BESS portfolio grows and evolves.
Learn more about PowerBidder Pro at stem.com/powerbidder-pro.
About Stem
Stem (NYSE: STEM) provides clean energy solutions and services that are designed to maximize the economic, environmental, and resiliency value of energy assets and portfolios. Stem’s leading AI-driven enterprise software platform, Athena® enables organizations to deploy and unlock value from clean energy assets at scale. Powerful applications, including AlsoEnergy’s PowerTrack, simplify and optimize asset management and connect an ecosystem of owners, developers, assets, and markets. Stem also offers integrated partner solutions to help improve returns across energy projects, including storage, solar, and EV fleet charging. For more information, visit www.stem.com.
About Central Coast Community Energy
Central Coast Community Energy (3CE) is a public agency that sources competitively priced electricity from clean and renewable energy resources. 3CE is locally controlled and governed by board members who represent each community served by the agency. Revenue generated by 3CE stays local and helps keep electricity rates affordable for customers, while also funding innovative energy programs designed to lower greenhouse gas emissions and stimulate economic development. 3CE provides service to approximately more than 1 million people throughout the Central Coast, including residential, commercial, and agricultural customers in communities located within
About Silicon Valley Clean Energy
Silicon Valley Clean Energy is a not-for-profit, community-owned agency providing electricity from renewable and clean sources to more than 275,000 residential and commercial customers in 13 Santa Clara County jurisdictions. As a public agency, net revenues are returned to the community to keep rates competitive and promote clean energy programs. Silicon Valley Clean Energy is advancing innovative solutions to fight climate change by decarbonizing the grid, transportation, and buildings. Learn more at SVCleanEnergy.org.
Source: Stem, Inc.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240319162877/en/
Stem Investor Contacts
Ted Durbin, Stem
Marc Silverberg, ICR
IR@stem.com
Stem Media Contact
Suraya Akbarzad, Stem
press@stem.com
Central Coast Community Energy
Peter Berridge
Manager of Communications
pberridge@3ce.org
Silicon Valley Clean Energy
Michaela Pippin
Principal Communications Specialist
408-721-5301 x1020
Michaela.pippin@svcleanenergy.org
Source: Stem, Inc.
FAQ
What software application has been selected by Central Coast Community Energy and Silicon Valley Clean Energy for bid optimization management of utility-scale assets in the CAISO market?
Who announced the selection of Athena PowerBidder Pro by the CCAs?
What features does PowerBidder Pro offer to manage and execute trading strategies for CCAs in the CAISO market?
When will PowerBidder Pro start supporting the CCAs?
How many resource sites will the software manage for the CCAs?
