$AMRC Stock Up On Contract With Southern California Edison

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AMRC stock moved higher on October 22, 2021, after the company announced a huge contract with Southern California Edison.

Ameresco Announces an EPCM Contract for Large Distribution Battery Energy Storage Systems for a Total of 537.5 MW / 2.15 GWh

On October 21, 2021, Ameresco, Inc. (NYSE: AMRC), a leading cleantech integrator and renewable energy asset developer, owner, and operator, announced that it had entered into a contract with Southern California Edison (SCE) to design and build three grid-scale battery energy storage systems (BESSs) at existing substation parcels throughout SCE’s service territory in California. Due to the impact of the extreme weather events in the state, this aggressive plan will significantly increase the reliability of the grid with a targeted commercial operation date in August 2022.

The substation energy storage systems will be built to address the emergency reliability risks identified in the Governor’s Emergency Proclamation to utilize clean energy resources to address electric power shortages due to extended drought, wildfire, and heatwaves. The contracted systems will be located at three distinct distribution-level substation parcels in SCE’s service territory to efficiently provide for the electricity demands in the San Joaquin Valley, Rancho Cucamonga, and nearby communities Long Beach area. The systems equate to 537.5 MW with a four-hour duration, for a total of 2,150 MWh.

“SCE sees a growing role for battery storage as we transition to delivering 100% clean, renewable energy to customers,” said Kevin Payne, President, and CEO of SCE. “The battery storage systems we have contracted for with Ameresco will make the grid more resilient to the effects of extreme weather and will help us continue our progress toward the clean energy future, which is essential to combating climate change.”

The three substation systems are a novel approach for incorporating advanced energy storage at the distribution level to solve overall system capacity and reliability needs. They will be operated in a manner that maximizes the grid’s reliability by charging during periods of excess generation and discharging during periods of need. The project will utilize a turnkey Engineering, Procurement, Construction, and Maintenance (EPCM) contracting mechanism.

“Innovative cleantech projects of this magnitude have the ability to provide transformative solutions to regions in need of reliable and resilient energy,” said George Sakellaris, CEO, Ameresco. “At Ameresco, we are so pleased to be a part of a project that takes such a meaningful step in providing cleantech solutions to combat the disruptive effects of extreme weather events across the nation.”

“In recent years, California’s extensive wildfires have highlighted the necessity and importance of improved energy infrastructure. It has become clear that the time for action is now,” said Britta MacIntosh, Senior Vice President, Ameresco Western Region. “This project is proof that when we work together, we can solve for real and reliable solutions to address the needs of the State of California.”

Once completed, this project will directly contribute to the State of California’s clean energy and carbon neutrality goals and help Edison International, SCE’s parent company, meet its 2045 net-zero greenhouse gas emissions commitment.

The EPCM Agreement was entered into after September 30, 2021, and such entry does not affect Ameresco’s financial results for the fiscal quarter ended September 30, 2021. Ameresco is evaluating the expected effect of the EPCM agreement on its financial results for the fourth quarter ending December 31, 2021, and will provide an update when it releases its third-quarter 2021 financial results after the market close on Monday, November 1, 2021, and on the accompanying earnings conference call.

Founded in 2000, Ameresco, Inc. (NYSE: AMRC) is a leading cleantech integrator and renewable energy asset developer, owner, and operator. Our comprehensive portfolio includes energy efficiency, infrastructure upgrades, asset sustainability, and renewable energy solutions delivered to clients throughout North America and the United Kingdom. Ameresco’s sustainability services in support of clients’ pursuit of Net Zero include upgrades to a facility’s energy infrastructure and the development, construction, and operation of distributed energy resources. Ameresco has completed energy-saving, environmentally responsible projects with Federal, state, and local governments, healthcare and educational institutions, housing authorities, and commercial and industrial customers. With its corporate headquarters in Framingham, MA, Ameresco has more than 1,000 employees providing local expertise in the United States, Canada, and the United Kingdom. https://www.ameresco.com/

Trent University and Ameresco Partner on Energy Performance Upgrades

On October 19, 2021, Ameresco, Inc., (NYSE: AMRC), a leading clean technology integrator specializing in energy efficiency and renewable energy, announced a partnership with Trent University, a leading environmental institution, to install various energy efficiency upgrades, including an on-campus Battery Energy Storage System (BESS), that aim to reduce the University’s carbon footprint further, while supporting the provincial energy grid.

“This project is an exciting next step in Trent’s ongoing commitment to environmental and sustainable initiatives on campus,” says Tariq Al-Idrissi, acting Vice President of Finance and Administration at Trent University. “Our renewed Energy Performance Contract with Ameresco builds on previous energy-saving projects such as converting the campus lighting to LEDs, implementing smart ventilation systems, and using solar energy to power the new zero-carbon Forensics Crime Scene Facility, the first of its kind in Canada.”

The BESS will store energy overnight when the provincial grid is producing the lowest cost and lowest carbon energy and use it to power the campus at strategic times when the Ontario system operators typically turn to gas-fired generation to meet the atypical high demand for electricity. Taking this action on campus contributes to Ontario’s Industrial Conservation Initiative and will result in an expected reduction in Global Adjustment fees of over $1 million annually. These savings will fund the BESS installation as well as extensive upgrades to Trent’s electrical infrastructure.

“One of the amazing things about working with customers on projects like these is finding energy-saving solutions that work for them and generate significant cost savings in the long run,” said Bob McCullough, President, Ameresco Canada. “By taking a collaborative approach right from the start, we can work together to develop solutions that prioritize sustainability and durability.”

The Energy Performance Contract amendment between the University and Ameresco was recently approved by Trent’s Board of Governors, with construction scheduled to commence later in the fall. Proposed upgrades include installing a 2.5MW/5 MWh BESS, replacing aging switchgear components, and implementing a carport canopy photo-voltaic (PV) and electric vehicle (EV) charging station. The PV and EV charging station will complement the newly installed BESS and reduce the University’s greenhouse gas emissions.

Ameresco to Partner with the United States Coast Guard on First Battery Energy Storage System Project at Training Center Petaluma

On October 12, 2021, Ameresco, Inc. (NYSE: AMRC), a leading cleantech integrator specializing in energy efficiency and renewable energy, announced it had entered into a $43 million Energy Savings Performance Contract (ESPC) with the United States Coast Guard (USCG) at the service’s largest west coast training facility, Training Center (TRACEN) Petaluma. The project will be the USCG’s first Battery Energy Storage System (BESS) project and the Department of Homeland Security’s (DHS) largest solar renewable energy project integrated within the USCG’s first fully functional, renewable energy-powered microgrid.

TRACEN Petaluma faces a range of energy security and resiliency challenges endemic to northern California’s climate and regional power infrastructure. In light of the regularity and severity of weather events and utility interruptions affecting the site, USCG competitively selected Ameresco in February 2021 to fast-track the development of a comprehensive ESPC to enhance the site’s electric infrastructure and resiliency posture. The microgrid will integrate existing distributed backup generators with a new 5 megawatt (MW) solar array and an 11.6MWh BESS to power the entire site in the event of a loss of utility (LoU). Planned improvements also feature the deployment of new power distribution transformers, Smart controls in 10 buildings across campus, LED lighting improvements for over 8,000 fixtures, new electric vehicle (EV) charging infrastructure, and heating, ventilation, and air conditioning (HVAC) equipment upgrades.

“This contract award enables continuity of operations in an environment of unpredictable climate hazards and will increase Training Center Petaluma’s relevance throughout the region while sustaining our Coast Guard mission-ready total workforce,” said Capt. Steven Ramassini, commanding officer for the training campus.

“Addressing the evolving needs of the Coast Guard means that we have to look beyond just using traditional direct appropriations. The use of energy performance contracts allows the Coast Guard to address critical infrastructure improvements in a timeframe that would be unachievable with customary methods and provides holistic solutions to complex issues. Leveraging partnerships and finding unique solutions is how the Coast Guard is able to accomplish mission-critical improvements with our limited resources,” notes Rear Adm. Carola List, Assistant Commandant for Engineering and Logistics, and the Coast Guard’s chief engineer.

Once completed, Training Center Petaluma ​​will realize a cost savings of more than $1.2 million in the first year alone. The project will also reduce the site’s annual electricity and propane consumption by 8.7M kWh and 50.8 kgals, respectively.

“We are so honored to lead the design and development of this historic project for the United States Coast Guard,” said Nicole Bulgarino, executive vice president, Ameresco. “The upgrades outlined integrate energy efficiency and clean onsite energy with advanced microgrid controls and significantly enhanced the training facility’s energy resiliency. The finished project will set a strong precedent for future Federal renewable generation and battery storage projects.”

Construction on the project is set to begin in October 2021 and reach completion by Fall 2023.

AMRC Stock Technical Analysis

Although AMRC stock has an excellent technical rating, it does not present a decent entry opportunity as of October 24, 2021. Prices have been extended to the upside lately. For a good entry, it is better to wait for consolidation. Click here to sign up for email alerts when AMRC stock presents a good setup opportunity.

AMRC stock chart on October 24, 2021, does not present a good setup.
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