Scale Microgrid Solutions (“SMS”), the provider of micro and distributed grid technologies just raised a $300M equity round from Warburg Pincus to fuel growth in the U.S. The deal structure being all equity, with no word on supporting debt structure which one would think in an infrastructure heavy business like SMS.
Founded in 2016, SMS is a vertically integrated dispersed energy firm focused on delivering fully funded cleaner, more economical, and more reliable power solutions to commercial and industrial (“C&I”) customers throughout North America. The company will help accelerate the deployment of energy resources through its distinctive microgrid merchandise and fully financed alternative while leveraging its long-standing partnerships with industry-leading companies.
In 2020, the company is going to be primarily focused on growing their Rapid Response Modular Microgrid (“R2M2”) supplying, a technology that has been developed and deployed to assist California businesses deal with the rising threat of wildfires and general public safety power shutoffs.
The Microgrid Market: A Primer
Microgrids are localized bunch of interconnected loads and distributed energy resources that works in linked and synchronous with the main grid. These are modest scale localized power stations that have their own storage resource, generating plant and defined boundaries. The system can be powered by batteries, renewable sources and distributed generators dependent on the fuel requirement, program area and easy availability of production resource. The analysis features a detailed analysis of industry segmented into regional and country basis across educational institutes, healthcare, utility, military and emote programs. Additionally, the market estimates & prediction are in accordance with information represented by several regulatory authorities including DOE, IEA, IDEA, USAID and related company presentations and press releases.
Accelerating demand for dependable and uninterrupted power supply along with favorable steps toward integration of clean energy sources will trigger the microgrid market growth. Increasing awareness of captive power generating resources due to rapid industrial growth across the remote areas.
Additionally, positive outlook toward electrification programs endorsed by authorities helped schemes and upsurge in consciousness toward security of supply will provide opportunities for business expansion. Furthermore, declining component prices along with raising investments toward integration of sustainable energy technologies will positively influence the business dynamics.
Rapid technological progress toward the creation of innovative energy storage systems, distributed power generating systems and software will complement the business outlook.
Comments from Management Team
The management group is led by Chief Executive Officer, Ryan Goodman, who most recently served as the President of ENER-G Rudox, a distributed energy company, which Centrica obtained in 2016. Ryan is connected by a senior team with extensive distributed energy and microgrid experience, including Chief Operating Officer, Tim Hade, and Chief Technology Officer, Howard Goodman, both of whom worked closely together with Ryan as part of their senior leadership team at ENER-G Rudox.
“North America should reconstruct its energy infrastructure in a far more sustainable way, which demands flexible and trustworthy behind-the-meter power alternatives and access to efficient financing for clients. This is very timely in regions like California and the Pacific Northwest, but can also be relevant from the Northeast, as C&I clients demand more reliable, more affordable and cleaner energy solutions. Our focus on deploying entirely financed distributed energy options and microgrids will place us well to capitalize on this next wave of growth,”
Ryan Goodman, CEO, Scale Microgrid Solutions
“Warburg Pincus’ profound experience in the energy, technology and financial services sectors, paired with their strong history in supporting management teams to build businesses of scale, will be invaluable as we pursue our vision to create distributed energy options more accessible,” added Tim Hade, COO, Scale Microgrid Solutions.
Peter Kagan, Managing Director, Warburg Pincus, commented, “Scale Microgrid Solutions signifies a significant investment in the next wave of power infrastructure. The business will provide customers and developers a one-stop-shop for distributed energy options and handle everything from deployment to funding. We look forward to partnering with Ryan and his staff and strongly believe that SMS is well-positioned to capitalize on the growth and demand for cleaner, cheaper, and more reliable electricity.”
