Utility Tokyo Gas has begun operating energy software and consulting group Ascend Analytics’ bid optimisation platform for its 174MW Longbow battery energy storage system (BESS) in Texas.
Located in Brazoria County, Texas, Longbow was acquired by Tokyo Gas America (TGA) in 2024 from developer Clean Capital Partners.
In February 2024, tax equity specialist investor Foss & Company announced a US$118.5 million investment tax credit (ITC) transferability deal for the Longbow BESS.
In a 2023 document establishing Longbow Holdings as a subsidiary of TGA, the company noted:
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“As this project will utilise the USA tax incentive programme, Tokyo Gas’s actual investment in the project will decrease. The impact of the transaction on consolidated performance for the fiscal year is expected to be relatively small.”
Ascend’s SmartBidder bid optimisation platform leverages AI forecasts of market conditions and bid optimisation agents to enhance profitability for BESS in both day-ahead and real-time markets.
Earlier this year, in a webinar highlighting SmartBidder, the company claimed that the platform “consistently delivers 50%+ more revenue than the market averages for BESS projects in ERCOT and CAISO.”
Ascend says that SmartBidder will enable TGA to develop and implement customised bid strategies based on nodal specific forecasts, asset specific constraints and risk-based optimisation for day-ahead and real-time bids.
Speaking with Energy-Storage.news in February, Ascend Analytics CEO Dr. Gary Dorris, PhD, discussed changes to ancillary services in the Electric Reliability Council of Texas (ERCOT) market, noting market saturation within energy storage.
“In markets like Texas and California, we have enough storage to meet ancillary service requirements. But, with saturation, ancillary service prices align more with energy prices. This creates an economic balance—meaning the opportunity cost of being in energy versus ancillaries is equalised.”
Other companies, such as AI-enabled optimiser GridBeyond, have also highlighted the importance of reliable optimisation software in ERCOT.
In a guest blog for ESN in January, GridBeyond’s Ali Karimian and Alden Phinney said:
“Achieving optimal Profit and Loss (P&L) demands a sophisticated blend of strategic foresight, market expertise, and the application of cutting-edge forecasting tools. Success hinges on the ability to seamlessly integrate diverse strategies while remaining agile in response to dynamic market conditions.”
Prior to Longbow’s commercial start on 16 May, and the rollout of SmartBidder, Ascend supplied the project development team with detailed ERCOT market insights and real-time bidding analytics, assisting the company’s market engagement and risk strategies.
Eiichiro Fujii, CEO of TGA said of working with Ascend for Longbow:
“Partnering with Ascend not only affords us a competitive advantage when bidding into ERCOT’s energy markets, it also provides us with a foundational understanding of the shifting dynamics that drive opportunity in Texas’ energy transition.”
