Generac Holdings Inc. this week announced the signing of an agreement to acquire Enbala Power Networks in a deal that it says will solidify Generac’s position as a market leader in Smart Grid 2.0 technologies.
Denver-based Enbala provides distributed energy optimization and control software that helps grid operators with stability. The company’s Concerto platform is used by utilities and energy retailers around the world, it says, to leverage the power of distributed energy resources (DERs) to respond to the real-time energy balancing needs of power systems and energy markets.
“We’re on the leading edge of a remarkable transformation of the electrical grid, moving from a dated and centralized power distribution model to one that will be digitized, decentralized and more resilient,” said Aaron Jagdfeld, Chief Executive Officer of Generac.
With thousands of megawatts of residential and industrial standby power generation installed in the United States, Generac’s products can be leveraged in virtual power plant (VPP) and distributed energy resource management system (DERMS) markets.
By using the Enbala software, DERs can register to participate in distributed energy aggregation and control programs. This means otherwise dormant back up power generation assets can come online as part of a distributed energy solution and generate revenue for the asset owner, said Generac.
As utility companies adopt cleaner forms of energy while simultaneously dealing with power disruptions, the opportunities to optimize the grid with DERs are becoming more creative. Generac believes that residential and C&I rooftop solar, behind-the-meter battery storage systems, electric vehicles and flexible electricity load management are components of a healthy future for DERMs.
“Distributed generation is a critical next step for utility companies faced with meeting peak demand while also dealing with capacity constraints and regulatory restrictions,” said Jagdfeld. “Enbala and Generac will be able to harness the power of everything from solar-plus-storage systems to our own generators to help limit the need for new power plants and maintain the convenience and flexibility of diversified power production.”
- Navigant ranks AutoGrid, Enbala, Siemens atop distributed energy management systems
- Honeywell to support Entergy New Orleans’ demand response program for C&I customers
- Using technology to promote an optimized grid and an engaged customer
“Together with Generac, we have an unprecedented opportunity to make our energy grids more efficient, resilient and economical,” said Bud Vos, President and CEO of Enbala. “As part of the Generac team, we can now accelerate our vision for a cleaner grid, leveraging our technology and capabilities that help continuously balance supply and demand while enabling rapid and profoundly beneficial changes in our energy markets.”
In response to the news, Generac was trading at almost 3 times its valuation from over a year ago.
The transaction is expected to close within thirty days. Terms of the deal were not disclosed.