Engie last week made official its agreement to acquire a majority stake in Electro Power Systems, a French-based energy storage and microgrid company with projects in the Americas, Europe, Asia and Africa.
The acquisition aligns with a strategy Engie announced in 2016 “to become leader of the world energy transition.” The EPS deal, originally announced in January, kicks off the last leg of Engie’s three-year, $12.5 billion investment plan.
“It’s a full ‘3-D’ vision. D as in ‘decarbonization.’ D as in ‘decentralization.’ And D as in ‘digitalization,’” Thierry Lepercq, executive vice president at Engie in charge of research, technology and innovation, told Greentech Media in early 2017. The EPS investment is the latest indication of this vision becoming a reality.
The purchase also reaffirms a several-year trend of large energy companies, especially in Europe, pouring money into customer energy management.
“As of right now, building out a distributed practice for these European energy giants will not result into a multibillion-dollar business in the near term,” said GTM Research grid edge analyst Elta Kolo. “Rather, acquisitions and large investments are expected to continue throughout 2018 as these energy giants seek to remain on top of emerging activity at the grid edge and in tune with where competitors are concentrating.”
EPS joins the Engie portfolio at €9,5 ($11.70) per share and joins recent solar additions Fenix International and SoCore and 2016 acquisitions including OpTerra, Ecova and Green Charge, which have been rebranded under Engie. The French utility said it will continue to list EPS shares.
Kolo said that after a spate of acquisitions and investments, 2018 will be a big year for consolidation. Companies are also likely to continue eyeing investments and acquisitions in energy storage, e-mobility, demand response, energy efficiency, smart home and residential retail spaces.
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