Dive Brief:
- Milwaukee-based EnSync Energy Systems has sold a batch of projects in Hawaii to a subsidiary of American Electric Power, including what it says is the first solar-plus-storage project agreement in the state.
- EnSync said the deal validates its services and power purchase agreement business model and is the first of several it is pursuing since entering the Hawaii market.
- The five projects were purchased by AEP OnSite Partners, which will use the solar generation to power the University of Nations and four communities.
Dive Insight:
EnSync may be selling off some of its Hawaii projects, but the company indicated in a statement that the deal was proof the power purchase development model can succeed on the island despite its newcomer status.
"Our project execution on this portfolio has been outstanding and this sale, which could be the first of its kind in the renewable energy market, provides validation of our PPA business model," President and CEO Brad Hansen said in a statement.
Three of the five portfolio projects include EnSync Energy storage, and all of the systems are sited behind-the-meter at condominiums or university campus buildings on Oahu and the Island of Hawaii.
There were no financial terms of the deal released, but the company said it included a "major portion" of EnSync Energy's PPA backlog reported at the end of our third quarter. And the Milwaukee-Wisconsin Journal Sentinel points those projects made up about $13 million at the end of March.
"When we entered the Hawaiian market with our PPA business model featuring leading energy management and energy storage systems, it was novel and unique in the islands," Hansen said. "Since that time our pipeline and backlog of PPAs has continued to build and we look forward to continuing this growth over the coming quarters and years."
Included in the portfolio of projects is EnSync Energy's Matrix Energy Management platform, which the company says can manage electricity from the grid, distributed generation and from energy storage.
AEP OnSite Partners collaborates with organizations on advanced energy management, and the company said the purchase from EnSync provides the University of Nations and four communities "with risk-managed affordable solar energy."
EnSync will provide ongoing project services through a contract with AEP OnSite.
The systems will "help meet their power needs without requiring them to own or maintain a solar system," said AEP OnSite Partners COO Joel Jansen. "Hawaii provides ideal conditions to create customer value with solar resources combined with energy storage. These projects are the first integrated solar and storage projects in Hawaii."