Fluence Energy, Inc. delivers intelligent energy storage and optimization software for renewables and storage. The company’s energy storage solutions and operational services are helping to create a more resilient grid and unlock the full potential of renewable portfolios. With gigawatts of projects successfully contracted, deployed and under management across nearly 50 markets, the company is transforming the way it powers its world for a more sustainable future.
As of September 30, 2024, the...
Fluence Energy, Inc. delivers intelligent energy storage and optimization software for renewables and storage. The company’s energy storage solutions and operational services are helping to create a more resilient grid and unlock the full potential of renewable portfolios. With gigawatts of projects successfully contracted, deployed and under management across nearly 50 markets, the company is transforming the way it powers its world for a more sustainable future.
As of September 30, 2024, the company had 5.0 gigawatts (GW) of energy storage assets deployed and 7.5 GW of contracted backlog across 33 markets in 25 countries with a gross global pipeline of 115.9 GW. As of September 30, 2024, the company’s global operational and maintenance (O&M) services team was providing services for 4.3 GW of energy storage assets, with a further 4.1 GW of contracted backlog. As of September 30, 2024, the company had an aggregate of 18.3 GW of renewable energy assets using Fluence digital offerings and 10.6 GW of contracted backlog related to renewable and energy storage assets using Fluence digital offerings.
Products and Services
The company’s offerings include energy storage products and solutions, delivery services, recurring O&M services, and digital applications and solutions for energy storage and other power assets. The company may refer to its energy storage products as energy storage solutions and use this term interchangeably as it is more reflective of the full offering available and provided to its customers. The company may also refer to battery energy storage systems, systems and cubes interchangeably. The company has repeatedly pioneered new use cases for grid-scale energy storage. Some of the uses the company has supported include frequency regulation, generation enhancement, capacity peak power, energy cost control, microgrids/islands, renewable integration, virtual dams, transmission and distribution (T&D) enhancement, and critical power.
Energy Storage Solutions
The company sells highly configurable energy storage solutions with integrated hardware, software, and digital intelligence. Fluence’s energy storage solutions are built on more than 15 years of development in prior generations, and reflecting, among other things, ongoing safety and design improvements. Fluence’s energy storage solutions make it simpler for customers to deploy storage faster and more cost effectively without sacrificing quality and configurability. The company’s storage technology lays the foundation for better energy storage solutions with industry-leading safety, integrated controls systems, and factory-built, highly modular building blocks. By pairing the benefits of mass production with the flexibility of a highly configurable system architecture, the company is able to serve the diverse needs of customers around the world from a single, underlying product platform. The company offers five energy storage solutions built on its common storage platform, which are optimized for common customer use cases but can be configured for specific customer needs:
Gridstack Pro: Energy storage solution for large-scale front-of-the-meter applications. Gridstack Pro is sold to independent power producers (IPPs), developers, utilities, and other generators. Gridstack Pro is designed to improve density and system performance with both 2- and 4-hour product configurations. Gridstack Pro is intelligent energy storage for MW to GW scale projects with balanced power to energy matching and increased site density. This solution combines state-of-the-art battery modules, management systems, and monitoring equipment into a fully unified architecture designed to improve operations and system safety. Gridstack Pro includes a system of multiple interoperable enclosures that provide different energy capacities and densities for diverse global project needs. Gridstack Pro utilizes the Fluence-designed Battery Packs.
Gridstack: Energy storage solution for front-of-the-meter applications. This solution is sold to IPPs, developers, utilities, and other generators to deliver energy, capacity, and ancillary services in both regulated and deregulated electricity markets globally. Gridstack’s industrial-strength design is built for demanding front-of-the-meter energy storage applications including flexible peaking capacity, frequency regulation, renewable integration, and more.
Sunstack: Fluence’s DC-coupled energy storage product for DC-coupled solar and storage projects (Gridstack is used for AC-coupled solar and storage projects). Sunstack is built on the same foundation as Gridstack but includes a DC-DC Converter (in addition to the inverter). Sunstack also comes with enhanced Fluence OS market dispatch applications that support specific solar and storage use cases, such as firm solar output and solar energy time shifting.
Edgestack: Designed for smaller-scale commercial and industrial (C&I) use cases. Edgestack includes the same core components as Gridstack, but with a select number of small, pre-defined product cores. Fluence does not actively sell Edgestack systems to C&I customers, but the company is continuing to establish channel and reseller partners who can sell and install the product.
Ultrastack: Designed to meet the critical system requirements of distribution and transmission networks, including stringent requirements around availability, uptime, and IT security, and advanced controls applications that deliver a suite of highly technical grid services, such as synthetic inertia and power oscillation damping.
In addition, each of its energy storage solutions comes with the company’s proprietary energy management system, Fluence OS, which enables asset owners to operate the storage system directly with pre-set modes and market dispatch applications or integrate directly with external ISO and EMS signals. Fluence OS provides real-time information through multiple systems views, alarm notifications, and dashboards. It is an integral part of all the company’s energy storage solutions. Fluence OS enables Fluence energy storage solutions to deliver critical grid services, such as primary frequency regulation, secondary frequency response, fast frequency response, peak shaving, voltage regulation, power factor regulation, non-spinning reserves, capacity peak power, solar energy time-shifting, firm solar export, and more.
The company also offers comprehensive engineering and delivery services to support the deployment of its energy storage solutions. Customers can select from a range of delivery services, from project design to full-wrap turnkey installation.
Fluence-designed Battery Pack
Gridstack Pro is designed to leverage the company’s Fluence-designed Battery Packs for optimized system performance and supply chain agility. The Fluence-designed Battery Packs combine state-of-the-art battery modules, management systems, and monitoring equipment into a unified product architecture designed to improve operations through advanced thermal and state of charge (SOC) management, which is intended to promote consistent product performance and safety at the system level. The Fluence-designed Battery Pack is intended to give the company greater control over its global supply chain and increase standardization across products. This is more efficient and cost-effective than solely relying on third-party suppliers. The company initiated domestic production of battery modules at its contract manufacturer’s facility in Utah in September 2024. These battery modules will incorporate battery cells manufactured in Tennessee for the company’s domestic content offering. These Fluence-designed Battery Packs will allow Fluence and its customers to capture certain incentives under the IRA.
Services
Operational and Maintenance Services
In addition to energy storage solutions, the company’s offerings include delivery services and recurring operational and maintenance services. The company’s recurring operational and maintenance services are designed around customer business needs, in-house capabilities, performance requirements, and risk profiles. The company’s service offerings provide varying levels of training, maintenance, guarantees, warranties, and support to address its customers’ desired level of active system management. Service levels range from providing comprehensive training for customers to performing full asset operation and management on behalf of the customer. Fluence services help secure products with comprehensive warranties and extensive claims support. The company helps safeguard customer asset revenue potential over project life with degradation, capacity, and availability guarantees. Preventive and reactive maintenance services maintain equipment and optimal operating conditions, backed by 24/7 support and an experienced team of service professionals.
Digital Applications
The company’s Fluence digital offerings encompass proprietary artificial intelligence (AI) and data science technologies to enable the advanced capabilities of its two cloud-based software products: Fluence Mosaic and Fluence Nispera.
Fluence Mosaic is an intelligent bidding software for utility-scale storage and renewable assets, enabling customers to optimize asset trading in wholesale electricity markets. Fluence Mosaic is available in the NEM (Australia), CAISO (California), and ERCOT (Texas) markets.
Fluence Nispera is the company’s asset performance management (APM) software, which it acquired in 2022. Fluence Nispera helps customers monitor, analyze, forecast, and optimize the performance and value of renewable energy assets. Fluence Nispera is an AI-driven utility-scale asset performance management platform that supports portfolios of energy storage, solar, and wind assets.
Growth Strategy
The company’s growth strategy includes leveraging its global scale, technology leadership, product development, and market share position to help transform the way it powers its world for a more sustainable future. The company focuses on transforming the way it powers its world by helping customers create more resilient and sustainable electric grids. The company intends to further develop and innovate to provide energy storage solutions and digital software offerings that aim to solve its customers’ energy challenges, and expand its services with additional value-add offerings. The company also plans to add new customers as the number of IPPs, utilities, and other key energy customers buying MWs of battery energy storage solutions continues to grow substantially throughout the world. The company aims to create an optimized production organization, continue to work to develop mass manufacturing facilities globally, and continues to secure partnerships with key battery and component suppliers. The company also focuses on expanding standardized offerings that are optimized for each of its sales channels and continuing to move towards a more localized, regional organizational structure to better support customers and sales channels, improve logistics, and enhance market focus. Furthermore, the company continues to explore disruptive digitally driven business models, including wide-ranging dynamic capacity, virtual storage, asset- and revenue-sharing models, and other offerings.
Customers
As of September 30, 2024, the company had deployed energy storage products and solutions in 33 markets in 25 countries. The company sells its energy storage solutions, services, and digital applications to a wide range of customers around the world, including utilities and load-serving entities, IPPs, developers, conglomerates, and C&I customers. In fiscal year 2024, the company’s two largest customers represented approximately 50% of its revenues. In addition, as of September 30, 2024, approximately 41% of its revenue was with related parties, primarily AES and its affiliates. As of September 30, 2024, the company had a gross global pipeline of 115.9 GWs, which includes 51.4 GWs for energy storage solutions and services. Of the energy storage solutions and services global pipeline, United States customers composed the largest portion of the company’s pipeline at 14.5 GWs or approximately 28%, with Australia customers following at 8.6 GWs or 17%, and Germany customers at 7.2 GWs or 14%.
Environmental, Social, and Governance
The company’s responsible sourcing and compliance philosophy is based on those principles spelled out in its Responsible Sourcing Policy and Code of Conduct for Fluence Business Partners and Third-Party Intermediaries (the Supplier Code of Conduct). The Supplier Code of Conduct sets forth the company’s expectations for all persons and entities connected to the Fluence supply chain and value stream. Over the past few years, the company has established and continue to improve its Conflict Minerals Due Diligence Program, Supplier GHG (Greenhouse Gas) Emissions Disclosures, and issued a Forced Labor Commitment Letter, that reaffirms its opposition to labor practices that would violate basic human rights.
The company’s environmental stewardship is based on the aspirations of its Global Environmental Policy which sets forth values relating to sustainability, regulatory compliance, environmental stewardship, and continuous improvement. Since 2019, the company has been certified against the ISO 14001 standard at its testfield in Erlangen, Germany and it is working to expand its ISO 14001 certification with the ultimate goal of certifying all relevant Fluence facilities to such standard.
Intellectual Property
As of September 2024, the company held over 179 granted patents worldwide and had over 82 patent applications pending with domestic and foreign patent offices. As of September 2024, the company also had over 108 registered trademarks with domestic and foreign trademark offices.
Government Regulation
The company's operations are subject to stringent and complex foreign, federal, state, and local laws, and regulations governing the occupational health and safety of its employees and wage regulations. For example, the company is subject to the requirements of the federal Occupational Safety and Health Act, as amended, and comparable the U.S. state laws that protect and regulate employee health and safety as well as comparable international laws that aim to protect and regulate employee health and safety.
Environmental Laws
The company has been certified against the ISO 14001 standard at its testfield in Erlangen, Germany and it is working to expand its ISO 14001 certification with the ultimate goal of certifying all relevant Fluence facilities to such standard.
History
Fluence Energy, Inc. was founded in 2018. The company was incorporated in 2021.