Introspective Systems, a Portland-based startup working on cutting-edge artificial intelligence applications, has received a $2 million grant from a joint U.S.-Israeli foundation to develop and test software to control micro energy grids, which are more effective than traditional centralized grids at matching variable energy generation and demand.

Introspective Systems will share the grant, which comes from the joint U.S.-Israeli Binational Industrial Research and Development (BIRD) Foundation, with a Jerusalem-based R&D partner, Brightmerge.

The grant proposals were approved by both the U.S. Department of Energy (DOE) and Israel’s Minister of Energy.

“The [BIRD] program brings together the brightest minds from innovative companies and institutes to develop and commercialize new energy technologies that deliver tangible economic benefits to both countries,” Rick Perry, the U.S. energy secretary said in a news release.

Introspective began investigating a joint project with Brightmerge in November 2017 and began the application process for the BIRD grant this past July, according to Kay Aikin, Introspective’s CEO.

For Introspective, this grant is an extension of work it’s been undertaking with prior DOE funding. To date, the company has received three DOE grants totaling nearly $1.3 million that have funded R&D on its grid architecture software, its “transitive energy controls algorithms,” and a blockchain-based energy valuation network and metering system that can be layered on top if its microgrid control platform, according to Aikin.

Brightmerge brings to the table experience in financing microgrids, as well as sensor technologies and “selection engines,” Aikin said.

The eventual commercial product the companies are developing will be marketed to microgrid developers, owners and engineering companies, according to Aikin. She expects the company’s first commercial sale will be the control system for the Isle au Haut microgrid. Brightmerge, she said, is also working on a large microgrid project in Israel.

The problem the companies are trying to solve involves an evolving energy landscape. Traditional energy grids were designed with centralized generation control that provide economies of scale that minimize the cost of delivering electricity. These energy grids, which were built on non-variable energy generation resources (think oil- and gas-fired power plants), were easily able to match the fluctuating demand from energy consumers. However, with the rise of renewable energy sources such as wind and solar, now both the generation and load can vary, an issue these centralized grids have a harder time handling.

Breaking the centralized grids down into independently managed microgrid is one strategy to solve this challenge, according to the company.

“Microgrids offer a more resilient, lower cost grid while enabling higher penetration of intermittent renewable energy resources at the same time,” according to the company’s project summary for the BIRD grant.

Introspective Systems currently employs 11 and has been hiring a new staff member about every three months, Aikin said. Two months ago, the company hired  Dr. Clare Bates Congdon as a new AI researcher. Aikin said the company expects to secure a Series A round of funding within the next six months.