Smart Energy Finances: Glasgow’s SMS acquires heat pump specialist

Glasgow-based Smart Metering Systems (SMS plc), an energy infrastructure company, has acquired the domestic services division of Manchester-based heat pump specialist Evergreen Energy, which imports and distributes European-made renewable energy products.

Also on the radar are two further acquisitions: that of a Chinese EV manufacturer by a Dubai-based tech company, as well as of a grids-focused advisory company by a US-based global consultancy.

SMS acquires heat pump division for flexibility services

The Scottish smart metering company has announced the acquisition of Evergreen Energy’s domestic services division, which specialises in the installation and maintenance of renewable energy assets, including heat pumps, solar and battery storage for homeowners.

According to SMS, the acquisition will enhance their capacity to deliver an extended range of low-carbon, behind-the-meter energy solutions to the UK’s domestic and commercial marketplaces.

The company, which earlier this year pointed to their flagship smart meter services and storage portfolios as key profit areas, is calling the acquisition “highly complementary to SMS’s leading role in the delivery of Great Britain’s smart meter programme, owning and managing c.4.5 million meter and data assets for customers,” they state in a press release.

Heat pumps are a key clean tech asset for enabling demand side response, which is gaining attraction in the UK as a method of alleviating peak demand on the country’s grid system.

The acquisition is thus hoped to deliver associated data solutions and demand flexibility services to energy suppliers, businesses and consumers.

Earlier this year in February, SMS announced a demand side response project, part of the UK Government’s Flexibility Innovation Programme, to design and deliver testing schemes for flexibility applications.

Earlier this week, UK market research company Cornwall Insight released research illustrating the crucial element smart meters represent for flexibility services, which have exponential savings potential, should households participate.

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SMS’s acquisition follows other strategic investments made last year in EV charge point software company, Clenergy EV, and of smart energy data platform, n3rgy, which similarly bolstered SMS’s presence in the EV charging infrastructure and data services markets.

Evergreen Energy’s other divisions, including the Homely and Easy MCS brands are not included in the transaction and will operate independently from the Evergreen Energy brand going forward.

Stated SMS CEO Tim Mortlock: “Whilst we will continue to operate the Evergreen Energy brand that has been successfully established within the northwest, the acquisition will bolster the Group’s overall capacity to deliver these carbon reduction assets on a wider national scale to a fast-growing domestic and commercial marketplace.

“The location of Evergreen’s Manchester base close to our national training academy and innovation centre in Bolton, where we are focussed on upskilling our engineering workforce and testing new technologies, will also be highly beneficial.”

A Middle Eastern acquisition of Chinese EV manufacturing

Dubai-headquartered mobility tech company NWTN has reached an agreement to make a strategic investment of $500 million in China Evergrande New Energy Vehicle Group (EVGRF), a Chinese automobile manufacturer that specialises in developing EVs, aiming to accelerate the company’s position in the EV space.

NWTN and EVGRF entered into a share subscription agreement pursuant to which NWTN will acquire approximately 27.50% of shares of EVGRF alongside the right to nominate a majority of EVGRF’s board.

The proposed transaction is expected to close in Q4 2023, subject to customary and other closing conditions.

NWTN, a mobility and green energy company, has a full vehicle assembly facility in Abu Dhabi. Technologically, the company has expanded its capabilities to include PV generation, green hydrogen production and energy storage.

The strategic acquisition forms part of the company’s continuing expansion, vying in growing markets in the Middle East, North Africa, China and other countries.

NWTN states an emphasis for their business on the use of AI technologies, autonomous driving and personalised passenger experience as key to its market positioning.

The company believes a partnership with EVGRF will be instrumental in addressing the EV needs of the Middle East and will facilitate EVGRF’s research and development and mass production of new car models for eventual export overseas.

According to Reuters, the deal forms part of a $3.2 billion plan unveiled by Evergrande to reduce its debt and stay afloat.

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Consultancy’s acquisition to reinforce grid expertise

US-based ICF, a global consulting and tech services provider, has acquired CMY Solutions, a power and energy engineering firm that advises on decision-making for grid modernisation, programmes and investments.

Founded in 2016, CMY’s team of 50 specialised experts advise senior leaders of utilities and developers across the US, Europe and Asia, including investor-owned utilities, electric municipalities and electric cooperatives.

ICF on the other hand consists of approximately 9,000 employees, consisting of business analysts and policy specialists who work alongside digital strategists, data scientists and creatives in the public and private sectors.

The acquisition brings to ICF strong backgrounds in renewable energy integration, distributed energy resources (DER) impact studies and management.

Additionally, CMY brings “deep technical expertise in substation, transmission and distribution system design, protection and control, North American Electric Reliability Corporation (NERC) compliance, as well as system planning and capital strategy consulting,” states ICF in a press release announcing the acquisition.

Commenting on the acquisition was John Wasson, ICF chair and CEO, who stated how the deal will “strengthen our ability to support utilities’ needs for grid transformation, reliability, resilience and renewables integration in a much more holistic way.

“As one team, we will scale our industry-leading energy service offerings and continue to grow our rapidly expanding technology and data management capabilities across the various markets we serve.”

Acquisitions have been key in this week’s Smart Energy Finances with smart metering for flexibility, EV manufacturing and grid modernisation expertise for consulting all seen driving strategic corporate moves.

What are your thoughts? What have you seen as having a large influence on decision-making when it comes to acquisitions in the energy sector and what would you like me to cover?

Let me know.

Cheers,
Yusuf Latief
Content Producer
Smart Energy International

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