Contact: Michelle Montague, (262) 735-5676
Recent Paris Climate Accord, Extension of Renewables Investment Tax Credit (ITC) and State-Level Programs and Policy Require Technologies That Synchronize Energy Assets
EnSync, Inc. (NYSE MKT: ESNC), dba EnSync Energy Systems, a leading developer of innovative energy management systems for the utility, commercial, industrial and multi-tenant building markets, states that recent and pending decisions aimed at shifting more electricity generation to sustainable sources confirms that EnSync’s technologies and strategy are well aligned with the domestic and international direction of policies and programs designed to further the adoption of renewable energy.
EnSync has closed over $12 million of Power Purchase Agreements that incorporate key incentives that have been extended and enhanced with the President Obama’s signature on the 2016 Omnibus Funding Bill. Key EnSync executives have played a role in urging Congress to approve these incentives. These enhanced incentives will substantially increase EnSync’s already promising pipeline for Power Purchase Agreements that include solar-plus-storage. In combination with EnSync’s industry leading product developments, we expect EnSync, in the longer term, to realize a substantial growth in new markets and increase penetration in existing markets both nationally and globally.
Internationally, the recent Paris Climate Accord creates the need for an energy portfolio that relies less on fossil fuels and more on renewable energy as a means of reducing carbon emissions. From this accord, will come additional global incentives by individual countries to meet their compliance targets. EnSync is well positioned with its Solar Power Inc. (SOPW) partnership to take advantage of these incentives when instituted. In particular, the partnership is setting up organizational structures in China, Australia, Germany and Japan — all key participants to the Climate Change Accord.
From a national perspective, according to GTM Research, extending the federal ITC will grow the U.S. solar market 54% through 2020, adding approximately 20 gigawatts of new solar capacity. Further proliferation of solar will require more energy management systems that incorporate storage, because without storage, solar is only of value when the sun is shining. Adding storage and related energy management systems increase the value of solar because stored electricity can be used at any time to take advantage of programs and applications that can be monetized, provide for additional benefits such as back-up power, and allow for greater penetration of renewable generating sources within the grid infrastructure. EnSync’s energy management systems are often comprised of solar-plus-storage designs, and extension of the ITC will create a greater market pull-through for such systems.
At the state level, state regulator policies are trending toward enhancing the value of solar-plus-storage generated power. In some cases net energy metering (NEM) policy changes are trending toward diminishing the value of solar generated power that is sold back through the grid and time-of-use (TOU) programs that create higher electricity prices during times of peak demand are being implemented. Ken Munson of GTM Research recently published, “As these new tariffs are established, they will create an even greater demand for advanced storage options and control technology. For example, taking full advantage of the self-supply tariff in Hawaii is possible only when consumers have intelligent battery storage of significant capacity. Even consumers who want to use a more traditional grid-connection tariff will see a better return on their solar investment using intelligent storage.”
“There is a tremendous shift underway, and EnSync is at the forefront of enabling the new dynamics of electricity supply and demand. EnSync’s capabilities will play an increasing role in the earliest stages of what will be a transformative energy market over the coming years”, confirms Dan Nordloh, Executive Vice President of EnSync Energy Systems. “EnSync Energy’s capability to synchronize and prioritize grid, battery and renewable generation sources are vital to the success of these international, national and state policies and accords.”