Stem
At a Glance
Industry
Internet, Software, Hardware and Technology Services
Project Type
Commercial Energy Efficiency
Year
2016
Location
Millbrae, CA
Summary
Andrew Whiteman researched the drivers behind electricity price volatility and built a financial model for evaluating the costs of battery deployment.
Goals
Looking to the future of energy storage, Stem, Inc. began exploring new market opportunities for services beyond its standard offerings. The company, dedicated to combining learning software and advanced energy storage, enlisted EDF Climate Corps fellow Andrew Whiteman to survey new value streams for potential Stem partnerships and help them address the issue of price volatility.
Solutions
Andrew focused his research around wholesale electricity markets, which can be extremely volatile, regularly spiking to $1,000/MW or more on a moment’s notice. Starting with academic research, he reviewed textbooks and journal articles to identify the causes behind volatility. To understand how new services can relate to existing battery capabilities, Andrew examined the technical factors of battery deployment. He then built a financial model for evaluating the economic value in the market compared to the costs of battery deployment. Andrew’s analysis identified an operational, proprietary solution to wholesale electricity price fluctuations.
Potential Impact
By following this recommendation, Stem partners can save money on electricity purchases. And, with fewer electricity purchases from marginal generation units, which typically are more carbon intensive options, GHG emissions reductions can be achieved. The recommended next step is looking further into price fluctuations to determine its optimal fit within Stem’s existing solution set.