MILLBRAE, Calif. – July 9, 2019 Stem, Inc., the global leader in Artificial Intelligence (AI)-driven energy storage services, announced a new partnership with Syncarpha Capital, LLC, a New York based private equity firm that develops, owns and operates distributed photovoltaic solar energy systems as well as energy storage systems, to build 28.2 megawatt-hours (MWh) of large-scale storage projects co-sited with solar in Massachusetts.

For Stem, the deal represents Stem’s expansion into the “front of meter” (or “wholesale distributed generation”) market where distribution-connected sites are participating in the regional wholesale markets. This is a natural extension from Stem’s behind the meter operations in the Northeast where Stem has been helping customers since 2017 to reduce their Installed Capacity Payment “tags” and associated Customer Capacity Payment obligations. Since 2017, Stem’s AI-driven storage systems have also executed over 1,000 times in California to provide wholesale and local capacity services.

“Stem’s AI acumen and project operation experience makes them an ideal storage partner for Syncarpha Capital as we build our newest solar fleet in Massachusetts,” said Cliff Chapman, CEO of Syncarpha Capital. “Stem’s AI-based project operation experience since 2012, and experience with storage co-sited with solar since 2014, creates a highly reliable partnership platform with Syncarpha’s long utility-scale solar and wholesale market experience.”

Syncarpha Capital is an established developer, having completed over 100 MW of solar assets in the U.S. Northeast, Mid-Atlantic, Southwest with an additional 70+MW of solar projects beginning or under construction in 2019. Stem will provide AI-driven storage solutions at five distribution grid-connected sites across Massachusetts that will be developed and owned by Syncarpha Capital. The systems will be connected to just over 26 megawatts (MW) of solar and will receive partial support from the Solar Massachusetts Renewable Target (SMART) Program, a state initiative that promotes cost-effective solar development with customer-facing and grid service benefits.

The systems will be managed by the Stem AI platform, Athena, which enables Syncarpha to participate in the New England Independent System Operator (ISO)-managed wholesale markets while complying with investors’ SMART and federal investment tax credit requirements. Moreover, Stem’s artificial intelligence platform enables its partners to participate in future wholesale and retail service revenues as regulators make those service programs available.

“Syncarpha is an ideal partner for Stem, with a long history of investment management and operating experience of distributed and utility-scale renewable energy projects,” said John Carrington, CEO of Stem, Inc. “Syncarpha’s particular experience and leadership in the U.S. Northeast positions Stem’s expansion in the Massachusetts, New York and PJM wholesale markets.”

Stem is the global leader in AI-driven energy storage services, with approximately 1,000 energy storage systems under contract and an additional 300 Athena platforms installed across six U.S. states, Ontario, and Japan. Stem’s AI platform, Athena, is the first of its kind for energy storage, performing real-time energy optimization that reduces energy costs and enables customers to access additional market opportunities via Stem’s network.