Stem Project Finance Capacity Now Exceeds $350 Million With New Commitment From Starwood Energy for Up to $100 Million
Innovative financing model launched by Stem extends the company’s
lead with industry’s most well-financed energy storage solution
Stem,
Inc., the leader in software-driven energy storage, today announced
that its project financing pool now exceeds $350 million with the
addition of up to $100 million in new financing from investment
affiliates of Starwood
Energy Group Global, LLC, a leading private investment firm focused
on energy infrastructure.
Stem created the energy storage project financing model in 2013 and is
now the global leader in energy storage for commercial and industrial
facilities with more than 75 MWh of projects deployed or under contract
across more than 480 locations across the United States. Third-party
financing enables companies such as Safeway, Wells Fargo, and Adobe to
subscribe to Stem’s award-winning storage-as-a-service solution with no
upfront costs for equipment or installation. Customers immediately
benefit from intelligent storage that automatically reduces energy use
during peak demand times, lowers monthly electricity bills by up to 20
percent, and provides a revenue stream from services that help balance
the electric grid.
“Distributed energy resources such as those provided by Stem will be
part of the foundation of the future electric grid,” said Madison Grose,
Vice Chairman, General Counsel and Senior Managing Director at Starwood
Energy. “The Stem financing is an attractive investment that facilitates
lower energy storage costs and wider adoption of clean energy
solutions—a win/win for our investors, Stem’s customers and the
environment,” added Patrick Verdonck, a Principal with Starwood Energy.
According to a recent report from GTM
Research, the U.S. market for behind-the-meter energy storage grew
more than 400 percent in 2015. By 2021, this sector is expected to
account for up to 49 percent of the total energy storage market. Stem is
estimated to have more than 50 percent market share based on GTM
Research.
“This financing vehicle gives our customers access to capital and allows
them to achieve the benefits of intelligent energy storage without
making a major investment,” said John Carrington, CEO of Stem. “Support
from Starwood Energy helps solidify Stem’s position as a well-financed,
industry leader in providing intelligent energy storage solutions.”
Stem is the global leader in distributed energy storage for the
commercial and industrial market with more than 75 MWh of projects
deployed or under contract for hundreds of customers. The company offers
storage-as-a-service to reduce electricity costs and aggregates energy
stored in its fleet of systems to provide grid services as clean,
reliable and instantaneous capacity to utilities
and grid operators. Stem currently provides grid services to
Southern California Edison, Hawaiian Electric, and the California
Independent System Operator (CAISO).
Starwood Energy is committed to supporting the development of
state-of-the-art energy infrastructure and it is financing Stem’s proven
technology—exceptional software integrated with lithium-ion batteries
from top-tier providers—because it represents a compelling value
proposition for businesses and utilities.
Stem’s primary project financing comes from Generate
Capital, a specialty finance company pioneering
Infrastructure-as-a-ServiceTM to catalyze the Resource
Revolution. Generate’s work with Stem brings a version of the solar
financing model to energy storage, supporting its mission to rebuild
energy systems using high-impact, proven technology solutions. Other
project financing is also provided by Clean
Feet Investors.
About Stem, Inc.
Stem, the leader in software-driven energy storage, combines big data,
predictive analytics and energy storage to simultaneously reduce
electricity costs for businesses and, in aggregate, deliver services to
the grid. Stem’s software learns a customer’s unique energy profile to
maximize savings and displays real-time and predicted energy usage
alongside actionable recommendations. When aggregated, Stem’s
customer-sited storage network offers flexible, cost-competitive
capacity to the grid. Headquartered in Millbrae, California, Stem is
funded by a consortium of leading investors including Angeleno Group,
Iberdrola (Inversiones Financieras Perseo) GE Ventures, Constellation
Technology Ventures, Total Energy Ventures, Mitsui & Co. LTD., RWE
Supply & Trading, and Mithril Capital Management. Visit www.stem.com
for more information.
About Starwood Energy Group Global, LLC
Starwood Energy Group is a private investment firm based in Greenwich,
CT that specializes in energy infrastructure investments. Through its
general opportunity funds Starwood Energy Infrastructure Fund I and II,
and other affiliated investment vehicles, Starwood Energy Group manages
total equity commitments in excess of $2 billion and has executed
transactions totaling more than $4 billion in enterprise value. The
Starwood Energy Group team brings extensive development, construction,
operations, acquisition and financing expertise to its investments, with
a focus on the natural gas and renewable power generation, and
transmission sectors. Starwood Energy Group is an affiliate of Starwood
Capital Group Global, L.P. Additional information about Starwood Energy
Group as well as Starwood Capital Group can be found at www.starwoodenergygroup.com.
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