Ozop Energy has been contracted to deliver 2 megawatt / 4 megawatt hour (MWh) smart energy storage for a major commercial property in New York’s Borough of Brooklyn. The project will optimise revenues under the state’s Value of Distributed Energy Resources (VDER) tariff that compensates distributed resources on a varying hourly basis for the specific benefits provided to the grid.

The project is expected to be first of a number that will help US cities reduce brownouts and blackouts. It will be delivered alongside Stem, a specialist in machine learning driven energy storage services.

The front of meter energy storage system will be driven by Stem’s Athena intelligent software, a platform which uses AI to optimise the value of energy through battery discharge and recharge cycles. Utilising Stem’s AI-driven storage is also the next step in Ozop’s energy storage technologies, allowing the storage system to deliver timed energy to the grid as the New York City utilities demand requires it.

Ozop storage systems can contribute to carbon offset programmes by reducing the need for spinning reserves, a currently necessary expensive support feature of the utilities.

The Brooklyn facility will be Ozop’s first project to utilise Stem’s smart energy storage within the company’s portfolio of commercial properties in several US states: New York, California, Texas and Arizona. It is expected that New York, in particular, will need more energy storage to meet its goal of reaching 3GW of storage by 2025 with 70% renewable energy by 2030 and a carbon-free electricity system by 2040. The state has created a set of policies including incentives for storage developers and procurement requirements for its biggest utilities.

“This commercial energy storage system is an important step forward in our distributed energy master plan,” said Brian Conway, CEO at Ozop. “Stem is a valued energy storage partner with unparalleled experience and best-in-class software that will enhance our offering to New York City. We are very excited for this collaboration and continue to reach several different energy markets with our multiple energy offerings

“Stem’s expertise and Athena intelligent software solution is backed by tens of thousands of grid services site dispatches to support energy reliability for our partners and their customers. We are pleased to provide our market-leading knowledge and VDER revenue optimisation experience to Ozop, helping alleviate congested grids and furthering New York’s energy goals with smart energy storage,” said Christy Martell, Senior Vice President of Sales at Stem.