Dive Brief:
- Behind-the-meter energy storage could soon be used as demand response resources on California's power grid as startup Stem is bidding aggregated storage into a new demand response pilot by the California Independent System Operator (ISO).
- Stem is bidding up to 160 KW for up to 3 hours into Cal-ISO's day-ahead demand response program. The batteries will still be available to reduce demand charges at the customer site.
- Stem's aggregated storage capacity is the only storage taking part in Pacific Gas & Electric's Intermittent Renewable Management Pilot Phase II, which issues payments to resources that can beat wholesale prices.
Dive Insight:
California is the ideal market to test this out on, as it is already looking to integrate at least 1.3 GW energy storage into the grid by 2020.
Stem aims to show behind-the-meter storage can "get into the market faster" and "be an asset to the system," said Tad Gaulthier, vice president of customer development. “We have the capability to do this with every customer we have today. It’s up to the customer if they want to participate.”
“I do think this will be a meaningful step in shaping policy, and getting regulators and participants more comfortable with distributed resources,” he added.
