“I would say we bid less than 20 percent” of the projects in its portfolio, he said. A big payout for a quiet pioneer in behind-the-meter energy systems—and a big move into distributed energy for SoCo, Southern Company Goes Big Into Microgrids With $431M Acquisition of PowerSecure. Even so, the utility recognizes that the “electric utility business model is increasingly expanding beyond the meter,” Southern Co. CEO Thomas Fanning said in Wednesday’s release. Full energy-loss audits to identify every possible energy conservation measure (ECM), yielding maximum cost savings based on local climate and weather patterns. PowerSecure's shares, meanwhile, have been languishing as a standalone company serving utilities and their commercial, institutional and industrial companies. PowerSecure CEO Sidney Hinton said in a Thursday interview that the company managed about 1,500 megawatts of flexible, behind-the-meter energy resources at about 1,200 sites, mostly east of the Mississippi River. Southern has been acquisitive in the last year, agreeing to buy AGL Resources (GAS) in August of last year for $8 billion and various solar and wind power plants in California and the southwest. It is advisable for onsite energy use to be optimized before installing a … Most of the company’s business is based on its Interactive Distributed Generation, or IDG, systems, he said. That will obviously be changing because of the Southern Company acquisition,” said Hinton, who spent much of his career at Georgia Power before founding PowerSecure. PowerSecure… The company has kept a pretty low profile, working primarily via direct negotiations between customers and their utilities, and shying away from public bid opportunities. While he wouldn’t name customers, he did say they include six of the country’s 10 top grocery-store chains, several well-known data center customers, and a few military bases. Reporter covering the green technology space, with a particular focus on smart grid, demand response, energy storage, renewable energy and technology to integrate distributed, intermittent green energy into the grid. PowerSecure, a Southern Company subsidiary, is a leading provider of innovative energy solutions to electric utilities and their industrial, institutional, and commercial customers. We’ve also seen a fair share of M&A activity along these lines over the years. Over the past four years or so, PowerSecure has also expanded into solar power projects, specializing in what Hinton called “making solar dispatchable. “Today there is demand for distributed infrastructure solutions that best meet each customer's unique energy needs.”. We curate our best reporting on the most salient trends in the industry. Recognizing the importance of accessibility we are able to integrate your charging stations with your facility for full compatibility, no matter the system type. NRG bought Energy Curtailment Specialists in 2013, Constellation Energy and Comverge merged their commercial-industrial demand response portfolios in 2014, and Customized Energy Solutions acquired Powerit Solutions earlier this year. Atlanta utility giantSouthern Co. (SO) - Get Report said late Wednesday it will buy PowerSecure International (POWR) for $431 million in cash, giving it an edge in distributed power technologies. "As energy technologies and customer expectations continue to evolve, the electric utility business model is increasingly expanding beyond the meter," Southern Co. Chairman, CEO and President Thomas Fanning said in the statement. PowerSecure's stockholders will receive $18.75 in cash for each of their shares, nearly a 90% premium over the company's closing price Wednesday of $9.87. This line of business is something like that provided by demand-response aggregators such as EnerNOC, Comverge and others. At the same time, most of the economic value of its systems come from peak shaving, demand-charge management, and other revenue streams dependent on syncing up the operation of its systems with utility needs, he said. 1 in the Booming Solar Loan Market, The First Major Long-Duration Storage Procurement Has Arrived, MIT Validates Science Behind New Nuclear Fusion Reactor Design, I Fully Converted a Home to Electricity. Action Alerts PLUS is a registered trademark of TheStreet, Inc. With our nationwide development capabilities and lighting designs customized to your exact needs and specifications, we offer integrated, ROI-driven solutions that are state-of-the-art and cost-effective. Southern Company subsidiary PowerSecure is a leading provider of utility and energy technologies to electric utilities, and their industrial, institutional and commercial customers. Â© 2020 Greentech Media or its affiliated companies. Most of PowerSecure’s customer base is outside Southern Co.’s territory, Hinton noted, with projects financed or owned by the customer itself, or by a utility. Now it’s getting bought by one of the country’s biggest utilities, in one of the largest publicly disclosed deals in the still-nebulous microgrid field. On Wednesday, Southern Company announced plans to acquire PowerSecure for $431 million, or $18.75 a share -- a hefty premium over the publicly traded company’s recent share price. We deliver innovative electrical measures and turnkey transformer retrofits, with in-house electricians to support needed ECM work and ease overall project management. It was genuinely a desire to do the “Green Thing”. © 2020 TheStreet, Inc. All rights reserved. Other companies in the space are forming partnership with energy companies -- Enbala is working with GE Energy Ventures and Edison International, and Blue Pillar is working with NRG Energy, to name a few examples. But over the years, PowerSecure has found itself in the position of taking ownership stakes in a relatively small portion of its projects -- about 10 percent or so, he said. PowerSecure, a Southern Company subsidiary, was chosen as the engineering, procurement, and construction contractor. The $431 million cash deal will give the buyer an edge in distributed power technologies. Southern Company believes that the advancement of distributed infrastructure technologies – the very technologies in which PowerSecure specializes through its unique business model – helps meet customers' future energy needs as part of the full portfolio of energy resources. The Wake Forest, N.C.-based company controls some 1,500 megawatts -- mostly backup generators, along with some cutting-edge solar-battery integrations -- that help hospitals, data centers, grocery stores, food-processing plants and other big commercial-industrial customers ride through blackouts and shave peak power costs. As it noted in its press release, “these technologies typically receive highest demand largely in markets outside of the Southeast,” where coal and nuclear still provide most of the region’s power.
We provide leading analysis and expertise to assess water consumption, in any type of facility, delivering a full range of effective, turnkey conservation solutions while maximizing your savings. “Most of our customers couldn’t afford backup power -- and they used the peak shaving to justify the investment.”. Transmission Southern Company operations has responsibility for more than 27,000 miles of transmission lines, 3,700 substations, and 300,000 acres of right of way. Go deep on GTM's hottest topics. We never had any intentions of making a lot of money on these waste management improvements. The deal has to clear PowerSecure stockholders and Hart-Scott-Rodino but is expected to close by the end of the second quarter. PowerSecure's shares jumped almost 80% in after-hours trading. “My understanding is, we will be the platform they use for their behind-the-meter services.”. That side of the company’s business accounted for about $100 million of its $400 million in 2015 revenues, he said. PowerSecure's stockholders will receive $18.75 in cash for each of their shares, nearly a 90% premium over the company's closing price Wednesday of $9.87. Southern Company subsidiary PowerSecure is a leading provider of utility and energy technologies to electric utilities, and their industrial, institutional and commercial customers. About PowerSecure Southern Company subsidiary PowerSecure is a leading provider of utility and energy technologies to electric utilities, and their industrial, institutional and commercial customers.