Gridmatic Closes $50 Million Energy Storage Fund
, Underscoring Importance of AI to Optimizing Batteries
Gridmatic will operate battery systems using its AI forecasting, which can boost revenue generation for grid-tied storage systems by as high as 46%
CUPERTINO, Calif.–(BUSINESS WIRE)–Gridmatic, the industry-leading AI-enabled power marketer, today announces the second closing of its first energy storage fund, bringing capital commitments to $50 million. The fund is earmarked to oversee the management of up to 500 MW of battery capacity in the ERCOT and CAISO markets.
CAISO and ERCOT, which respectively manage California’s and Texas’ grids, remain the two strongest markets for energy storage with pipelines of 43.7 GW and 32 GW in planned project capacity. Gridmatic has begun operating a 50MW / 100MWh battery storage system in Texas using the fund, which was successfully completed through participation from leading energy investors.
Gridmatic establishes multi-year offtake contracts to operate energy storage systems using its AI algorithms, ensuring steady revenue streams for projects. This enables developers to obtain the necessary financing for projects and recycle their capital into the development of additional storage systems. By decoupling active management of the batteries from project development, Gridmatic’s fund derisks the operational phase of a project for storage owners and supports the growth of the energy storage industry.
Gridmatic’s AI-enabled optimization can boost revenue generation for grid-tied storage systems by as high as 46%, according to backtesting on battery systems in ERCOT in 2022.
“Gridmatic’s energy storage fund presents a unique opportunity for investors to help drive battery growth and capitalize on energy market volatility,” said Erin Kogan, Chief Financial Officer of Gridmatic. “The need to grow the grid’s reserve of AI-optimized energy storage, bolstered by our strong early returns in the initial months of operation, drove strong interest from leading energy investors in our fund.”
“Successfully closing our energy storage fund now allows us to accelerate our growth in signing offtake agreements with asset owners and developers,” said David Miller, Vice President of Business Development for Gridmatic. “This summer showed us the major potential for battery storage in California and Texas to contribute to grid resiliency efforts. Our fund will help maximize these opportunities for batteries to play a greater role in the grid and for the market to grow.”
About Gridmatic
Unlike traditional power marketers, Gridmatic uses AI to optimize renewable energy participation in wholesale markets by forecasting energy supply, demand and pricing. Leveraging market-proven algorithms, Gridmatic is able to provide stability, predictability and automation for energy buyers, sellers, and storage owners amid increasing volatility. With Gridmatic Retail, the company offers advanced solutions for businesses with complex energy needs to hit carbon reduction goals, including time matched, variable load and carbon-free energy products. With its industry-leading AI, Gridmatic is working to accelerate the transition to net zero and balance the renewable-powered grid. For more, visit https://www.gridmatic.com.
Contacts
Media
For Gridmatic:
Leo Traub
646-883-3562
gridmatic@antennagroup.com
