Storage software

Fluence Acquires Energy Storage Software and AI Pioneer Advanced Microgrid Solutions

AMS’ technology uses machine learning to feed wholesale market price predictions into its battery auction optimization engine. Image: Fluence-AMS.

Energy storage technology provider and systems integrator Fluence has acquired Advanced Microgrid Solutions, the California-based company known for its artificial intelligence (AI)-based optimization software platform for energy storage and flexible production assets.

A Fluence press representative said in conjunction with today’s announcement that the combination of AMS’ “digital intelligence” platform with the company’s sixth-generation battery storage hardware energy storage company could allow asset owners to halve the payback time from six to three years. AMS has long been a pioneer in aggregating the capacities of energy storage systems in commercial buildings and industrial sites into clustered Virtual Power Plants (VPPs) across many US territories.

“Our century-old electrical system is under severe strain. Renewable energies and energy storage are the solution. AMS has developed one of the most powerful AI-enabled software engines available in the industry,” said Brett Galura, Chief Technology Officer at Fluence.

“This acquisition provides customers with data-driven insights that maximize the value and performance of generation and storage assets to make the entire network smarter. These innovations will drive the transformation of global power systems to ensure a more sustainable future.

Using AMS technology could mean an increase in the internal rate of return for energy storage of around 10% to 25% to 30%. Customers also do not need to use Fluence hardware, as the AMS system optimization platform can be used on storage systems from other vendors. AMS’ suite of solutions includes optimized auction software that is currently used in the CAISO market in California and the National Electricity Market (NEM) in Australia.

Fluence said today that AMS’ know-how and technology will help the company build on its existing digital capabilities, including market allocation algorithms, battery degradation modeling and fault detection. anomalies. AMS will also benefit from Fluence’s global sales reach, the company said. Together, they can offer customers better economics, help deliver a more resilient grid, and aid in the faster adoption of sustainable and renewable energy solutions, the company said.

“Fluence’s announcement of the acquisition of AMS illustrates how systems integrators are diversifying through a clear digital strategy and advanced software capabilities,” said Julian Jansen, research manager for AMS storage. energy at IHS Markit.

“Investors are flocking to the energy storage space, but since projects rely on a volatile revenue stream from merchants, creating a digital proposition centered around asset optimization will help differentiate in a crowded market. and cost sensitive.

According to Jansen, the acquisition of AMS complements the in-house system management capabilities that Fluence already has, adding the AMS digital platform, including its use of artificial intelligence, advanced price forecasting, optimization portfolio and automated market bidding “to optimize energy storage and flexible generation assets against different price signals across value streams,” Jansen said.

In select markets in the United States, including California and Texas, the ERCOT market now offers “very lucrative revenue opportunities through wholesale arbitrage,” the analyst said, and the acquisition of the platform form and expertise of AMS in optimizing large fleets of assets in wholesale markets, “reinforces Fluence’s strategy to create a digital value proposition that can command a premium in the market.”

“Through this, the company aims to avoid being drawn into fierce price competition as more vertically integrated system integrators – most often traditional UPS manufacturers becoming system integrators – gain market share. market,” Jansen said.

The acquisition will also allow Fluence to benefit from years of operational knowledge accumulated by AMS on storage assets both before and behind the meter and allow Fluence to diversify into fleets of flexible production assets beyond the energy storage.

Fluence – which formed as a Siemens-AES Corporation joint venture only a few years ago – claimed a big pipeline of more than 800 MW / 2,300 MWh of customer orders for its sixth-generation systems when they launch more early this year. He said today that AMS is currently bidding with 1.7GW of assets and has an additional 0.7GW under contract, while Fluence itself has to date deployed or secured 2.4GW of development projects. energy storage in 22 different national or regional markets around the world.

“Customers are building larger fleets of energy storage and flexible generation assets, while at the same time wholesale markets are becoming more complex and volatile. We have a unique opportunity to lead the clean energy revolution by using AI to optimize the distribution of flexible assets, maximize their value, and make the entire power system more responsive, reliable, and resilient,” said Seyed Madaeni, CEO of AMS, adding that being part of Fluence will allow his team to “accelerate the global expansion of our software.”