SWITCH Power, an Alberta-based sustainable energy developer and asset manager, announced this Wednesday it acquired a portfolio of behind-the-meter (BTM) battery energy storage systems (BESS) from cleantech company Peak Power Inc.
The portfolio of BESS is located in the greater Toronto area. It consists of four operational energy storage systems. In addition to the operational ones, SWITCH Power will acquire a second portfolio of ten additional BESS in late stages of development.
The assets from the second portfolio will enter operational stage in 2022, with the remaining in 2023. According to the company’s statement, the purchase will require $26 million in aggregate over that same period.
The first portfolio has a capacity of 22 megawatts; while the second has 44 MW deployed with large real-estate, asset management, and industrial customers. It will help offset nearly 1,170 tons of CO2 per year; equivalent to taking over 250 gas-powered cars off the road.
The purchase is still subject to standard closing conditions; however, it will position the company better to seize opportunities in a growing market. Company states it will give it a 20% market share. Furthermore, all of the facilities are top-notch technology, as they’re equipped with Peak Power’s Synergy software.
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SWITCH Power to solidify presence in a growing market
It is a scalable artificial intelligence-powered software that uses inputs from electricity markets to enable energy storage resources to communicate directly with buildings and the grid. This creates additional cost savings and revenue streams. In addition, the systems are able to charge and discharge at the most profitable moments, transforming buildings into distributed grid assets.
Trevor White, President and CEO of SWITCH Power, said. “This acquisition further solidifies our presence in distributed generation and storage, validates our electricity as a service platform, and, with it, adds imminent cash flow. This, alongside our current pipeline of development projects, positions us well to be a leader in this market in the years to come.”
On the other hand, Derek Lim Soo, CEO of Peak Power, said. “Our partnership with SWITCH Power allows us to direct more focus on developing and scaling our product, which already generates significant revenues and environmental benefit for our customers.”
Finally, he remarked. “This partnership validates our projects already in progress and proves that battery storage is an attractive investment. This is a great step for widespread adoption of distributed energy resources.”