![]() The hype and subsequent increase in price action of Star Peak Energy came largely from the software portion of Stem's business model. Stem is essentially a smart energy storage system company, which takes ESG in mind and hails upon their Athena AI system to optimise demand changes, resulting in 10%-30% of energy bill savings. Source: Stem Investor Presentation 2020, Pg. On top of this, he was executive VP of First Solar, where revenue grew from $500 million to more than $2 billion. Stem is currently being led by its CEO and director, John Carrington, with a total of 25 years in technology, energy and industrial companies, 16 of them being in General Electric as the Chief Marketing officer in charge of new technology efforts and product strategy. Source: Global Electric Car Stock, IEA, 2020 A Brief Summary of the Stem Team and Business Model Therefore, by utilising battery energy storage system technology, these countries would not only be able to balance supply and demand using stored energy, but also prevent users from paying high electricity prices during these hours. Linking back with over 250 million EV on the road by 2030, countries with large electric vehicle adoptions such as China, US and EU might experience 4-10% increase during evening peak demand for EV charging. They reduce costs for its customers by maximising time-of-use rates - stockpiling energy during time of low rates, to be used when demand and prices are high, while bypassing tariff structures during peak usage. Essentially, BESS provides for EV fast-charging abilities for grid-constrained areas (by storing energy in batteries) and prevents high demand charges during peak usage.Ä®xplanation: Stem provides BESS integrated with AI and machine learning technology. The reason EVs were brought up was due to the high correlation and mutual dependability between them and battery energy storage systems. Included in the green plan is $350 billion worth of investments into green infrastructure, including EV grid storage. Furthermore, structural changes including long-term zero emission policies, such as Joe Biden's promise of 100% clean electricity by 2035, and net zero emissions by 2050. This can be attributed to multi-governmental policies such as direct subsidies. It is an axiomatic truth that plug-in hybrid electric vehicles (PHEVs) and electric vehicles (EVs) are taking over, and exponential growth would not be a surprise. (Source: Stem Investor Presentation, ) The Symbiotic relationship between Electric Vehicles and battery electricity storage systems The business merger between Star Peak Energy Transition and Stem, an AI-energy storage solutions company, recently took place on 27th April 2021. This includes General Electric ( GE) and Singapore's government investment arm, Temasek Holdings. Before its reverse merger, the SPAC Star Peak Energy Transition Corp (Previously NYSE: STPK) had amassed a current 73% institutional ownership. The energy storage market is projected to increase fourfold in the next two decades, and Stem is spear-heading this rapid adaptation. Legislative support: Joe Biden's green infrastructure plan's approval and general acceptance, as well as the implementation and execution phase.Market growth: Overall rate of growth of energy storage systems, as well as the electric vehicles market due to its correlation with the former.Earnings: Stem's earnings projections, and Stem's ability to live up to them.Investors should scrutinise the following three aspects: Photo by Cn0ra/iStock via Getty Images Stem is an Institutionally Recognised, Long-Term WinnerÄespite relatively high valuations, Stem ( NYSE: STEM) is still undervalued, especially so in the mid to long term, when taking into account growth opportunities both in the current battery energy storage systems (BESS) market and potential expansion into the residential market. Active contributors also get free access to SA Premium. It's easy to become a Seeking Alpha contributor and earn money for your best investment ideas. Editor's note: Seeking Alpha is proud to welcome Scott Pang as a new contributor.
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