Stem, Inc., the global leader inartificial intelligence (AI)-powered energy storage, announced the first close of its Series D financing with an $80 million investment from a group of leading technology investors. In 2017, the company had over 1,100 sites operational or in construction with an average system size of 500 kWh, having commissioned a new energy storage system on average every two days.
The Series D was led by Activate Capital, a growth equity firm exclusively focused on companies providing innovative products and solutions across the sustainable energy and industrial technology markets.
“Activate invests in fast growing companies with exceptional management teams that are transforming industries. Stem is clearly the leader in the energy storage market, offering a powerful AI and technology platform that creates significant value to those inside their network,” said Activate Capital managing director, Anup Jacob.
Activate Capital was joined by Ontario Teachers’ Pension Plan (“Ontario Teachers’”), Canada's largest single-profession pension plan, and Temasek, an investment company headquartered in Singapore. “Ontario Teachers’ and Temasek have combined portfolios in excess of $300B across the global commercial, industrial and real estate landscape. In addition, these firms bring deep relationships, a long history of investment in innovative platforms, and credibility with global financial institutions. These elements will be critical in advancing our next stage of growth as we continue to lead innovation in the distributed energy industry,” said John Carrington, CEO of Stem, Inc.
Stem has had a strong year in Ontario, Canada, and looks to continue its momentum with its Global Adjustment offering–specifically designed for Ontario–which is ideal for large manufacturing plants and other industrial operations that seek improved control over energy costs.
Ontario Teachers’ Pension Plan senior managing director Andrew Claerhout commented, “We are thrilled to have the opportunity to support the continued growth of an innovative company with a proven product like Stem. Ontario Teachers’ foresees that more investment is needed in the transition to a low carbon electricity system and expects that batteries will play a key role in the transition and in making the electric grid more sustainable. Ontario Teachers’ will support Stem’s growth by leveraging our strategic partnerships globally.”
The equity raise caps a record 2017 for Stem’s growth in system count, new market expansion, and partnerships, with more announcements to come in 2018. Stem now has hundreds of systems under management across five states and three countries (US, Japan, and Canada). These systems form networks for capacity and grid services with eight utilities across North America and Tokyo Electric Power in Japan. Of the company’s over 1,100 sites, 330 locations are standalone PowerMonitor controls and software for utility use. These sites provide utility customers with additional grid edge visibility and control in areas with high rooftop solar penetration.
In 2017, Stem also announced innovative bundled customer service offerings with CPower, Constellation, and Sunpower for intelligent storage, traditional demand response, and solar+storage. Also in 2017, Stem’s platform, AthenaTM, the first artificial intelligence for customer-sited energy storage, was called on over 600 times to dispatch in day-ahead and real-time (five-minute) responses to the California wholesale market, helping alleviate heat wave-induced grid stress through its innovative Virtual Power Plant software technology.
“We are excited to announce that international investors like Activate Capital, Ontario Teachers’, and Temasek are joining us in transforming the way energy is distributed and consumed,” said John Carrington, CEO of Stem, Inc. “Our investors recognize Stem’s innovative value in energy superintelligenceTM and real-time energy optimization that benefits the customer, the utility, and the grid.”