MILLBRAE, CA—Stem Inc. creates technology services that transform the way energy is distributed and consumed. The firm was chosen by Kilroy Realty Corporation to deploy more than 7.5 MWh of artificial intelligence-driven energy storage at eight commercial buildings in Kilroy's California portfolio.
Stem's software platform allows Kilroy Realty's office buildings to simultaneously reduce the environmental impact while engaging in power markets─an important component in bringing greater grid flexibility and stability to the smart cities of tomorrow. In particular, California is leading the way in this technology.
“While it is easy to know how to reduce, it is difficult to manage demand. Anyone who consumes electricity is faced with not how much they are using but when they are using it,” Gabe Schwartz, Stem marketing director, tells GlobeSt.com. “Our platform uses algorithms that are monitored 24/7 to determine best time of use for higher hourly, monthly or annual electricity charges. This system is backed by lithium ion batteries that tap into stored energy at those more expensive times when energy would have been used.”
Stem will install its Athena-powered storage in 2018 at four Kilroy office buildings in San Francisco and another four in Los Angeles, representing approximately 20% of Kilroy's stabilized office portfolio. Athena by Stem is the first artificial intelligence for energy storage and virtual power plants. It optimizes the timing of energy use and facilitates consumers' participation in energy markets, yielding economic and societal benefits while decarbonizing the grid.
“When it comes to real estate and energy storage for commercial buildings, it's the brains behind the batteries that differentiate solutions. Kilroy is a renowned innovator in the real estate industry, and we are proud to support their corporate sustainability plans,” said John Carrington, CEO of Stem.
The Kilroy systems, which utilize a uniquely tailored financial structure for real estate firms, will join the world's largest digitally connected storage network. This network uses the systems when idle to support strained local grids and enable higher penetrations of clean power in the community.
The selection was facilitated by Black Bear Energy Inc., which acted as the owner's representative for Kilroy Realty.
“Intelligent energy storage helps reduce the environmental footprint of our building operations,” said Sara Neff, senior vice president of sustainability at KRC. “Black Bear's expertise with clean energy and Stem's AI-powered solution will help us achieve our environmental goals while helping to modernize the grid, which is a natural alignment with our business vision.”
Stem is directly funded by a consortium of investors including Activate Capital, Angeleno Group, Constellation Technology Ventures, Iberdrola (Inversiones Financieras Perseo), GE Ventures, Mithril Capital Management, Mitsui & Co. LTD., Ontario Teachers' Pension Plan, RWE Supply & Trading, Temasek and Total Energy Ventures.
“Kilroy was recently named the North American office leader in sustainability by the Global ESG Benchmark for Real Assets for the fourth time, and was added to the Dow Jones sustainability world index–one of only three American real estate companies named to the DJSI world index in 2017,” says Drew Torbin, Black Bear Energy's CEO. “We enjoy bringing good companies together. The energy superintelligence that Stem brings is a great fit for Kilroy.”
Black Bear Energy is a technology-enabled energy services company that represents commercial renewable and clean energy buyers. Black Bear's clients own manage, or control more than 2.5 billion square feet of US real estate.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
