Nostromo Energy’s IceBrick thermal energy storage (TES) technology will participate in the California Independent System Operator (CAISO) wholesale energy market.
The IceBrick is installed at the Beverly Hilton Hotel and also serves the adjacent Waldorf Astoria. Israel-headquartered technology company Nostromo claims it is the first behind-the-meter thermal energy storage (TES) system to participate in the CAISO wholesale energy market as a standalone demand response resource, through a partnership with distributed energy resource (DER) integration provider Olivine.
IceBrick is a modular, behind-the-meter (BTM) energy storage system (ESS) that cools water into ice during off-peak times and uses it to cool circulating water in commercial air conditioning systems during peak hours.
In December 2024, the US Department of Energy (DOE) announced a conditional commitment to IceBrick Energy for a loan of up to US$305.54 million to support Project IceBrick. This project involves a virtual power plant (VPP) composed of up to 193 cold thermal energy storage (TES) systems installed in commercial buildings throughout California.
Nostromo’s IceBrick system at the Beverly Hilton took part in California’s Demand Side Grid Support (DSGS) program this summer, achieving event reductions of over 200kW. Through bidding with Olivine in the CAISO market, Nostromo allowed the Beverly Hilton and Waldorf Astoria to function as a dispatchable, market-driven resources.
In September, California cut funding for DSGS. The programme reached 700MW of enrolled capacity in a relatively short period and, during a test event, reduced California’s net load.
Speaking with Energy-Storage.news Premium about that programme, Lauren Nevitt, Senior Director of Public Policy at residential solar PV and energy storage leasing company Sunrun, noted that the programme was the largest VPP in the country, “and probably the world.”
Olivine says its ‘ClimateResponse’ DER platform enabled the IceBrick to participate in DSGS.
The platform and Olivine’s market services “bridge the gap” between complex CAISO requirements and the monetisation of real-world asset operations. The platform helped to enable CAISO market transactions, coordinate dispatches, and provide actionable performance valuations.
Nostromo and Olivine say the two companies will build on this development “by enabling other commercial buildings and data centres to become active, flexible grid partners through cost-effective, decarbonising technologies.”
“Cooling by commercial buildings and data centres is the single largest load on the grid, and making these large loads flexible and operable interactively with the power grid demonstrates how buildings and data centres can help the grid unlock existing capacity to serve new demands, while saving energy costs and enjoying more resilient and reliable cooling operation,” Nostromo CEO Yoram Ashery said.
