EnSync Energy Sells Multiple Power Purchase Agreements to American Electric Power Subsidiary, AEP OnSite Partners
EnSync Energy’s Project Portfolio Sale Includes First Solar + Energy Storage Projects Sold in Hawaii
MILWAUKEE, WI–(Marketwired – Aug 1, 2016) – 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, today announced the sale of multiple projects to AEP OnSite Partners, a subsidiary of American Electric Power (NYSE: AEP).
The sale of these projects is EnSync Energy’s first transaction of a portfolio of project Power Purchase Agreements (PPAs) and includes a major portion of EnSync Energy’s PPA backlog reported at the end of our third quarter. Three of the five portfolio projects include EnSync Energy storage, including Agile™ Hybrid Storage, and EnSync Energy’s Matrix™ Energy Management systems. All of the systems are sited behind-the-meter at condominiums or university campus buildings on Oahu and the Island of Hawaii, and represent the first ever solar plus storage PPAs in Hawaii. EnSync will provide ongoing project services through a contract with AEP OnSite Partners.
“We’re very pleased to complete this transaction with AEP OnSite Partners, a recognized leader in renewable energy investments,” said Brad Hansen, President and CEO of EnSync Energy. “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. 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. 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.”
EnSync Energy has built a successful position in the Hawaiian market, and through its subsidiary company, Holu Energy, has developed a significant project pipeline in the islands.
“AEP OnSite Partners collaborates with universities, communities and businesses to take an active role in supporting advanced energy management in a way that is both affordable and hassle free. The purchase of these projects by AEP OnSite Partners provides the University of Nations and these four communities with risk-managed affordable solar energy to help meet their power needs without requiring them to own or maintain a solar system,” said Joel Jansen, Chief Operating Officer, AEP OnSite Partners. “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. We’re excited about the opportunity to serve these customers with these innovative distributed energy assets.”
Included in the portfolio is EnSync Energy’s proprietary Matrix™ Energy Management platform, which prioritizes in real time electricity from the grid, from distributed generation and from energy storage. The Matrix platform enables numerous opportunities to minimize electricity costs to the end-use consumer, while maximizing revenue generation and return on investment to PPA investors such as AEP OnSite Partners. Additionally, the Matrix ensures that the buildings’ future electrical needs are efficiently and economically accommodated to take advantage of the myriad of applications, government policies, and technology updates that will occur over time. The Matrix meets all requirements of the State of Hawaii for intelligent power control systems.
Hansen concluded, “The purchase of these projects validates our PPA business model, ability to execute projects and our technology. We’re excited by the outstanding progress we’ve made and look forward to building on this initial success.”
About EnSync Energy Systems
EnSync, Inc. (NYSE MKT: ESNC), dba EnSync Energy Systems, is enabling the future of electricity with advanced energy management systems critical to a global economy becoming increasingly reliant upon the expansion of renewable energy. Whether part of the grid power transmission and distribution network, or behind the meter in commercial, industrial and multi-tenant buildings, EnSync technology brings differentiated power control and energy storage solutions to electricity-challenged environments. Our technologies also serve as the system level intelligence in microgrid applications, by seamlessly integrating multiple generation and storage assets to deliver power in remote and community level environments not served by the grid, or areas electing to use the grid secondary to microgrid assets. In 2015, EnSync incorporated power purchase agreements (PPAs) into its portfolio of offerings, enabling electricity savings for customers and providing a stable financial yield for investors. EnSync is a global corporation, with a joint venture in AnHui, China at Meineng Energy, as well as a strategic partnership with Solar Power, Inc. (SPI). For more information, visit: www.ensync.com.
Safe Harbor Statement
Certain statements made in this press release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended that are intended to be covered by the “safe harbor” created by those sections. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as “believe,” “expect,” “may,” “will,” “should,” “could,” “seek,” “intend,” “plan,” “estimate,” “anticipate” or other comparable terms. Forward-looking statements in this press release may address the following subjects among others: our ability to monetize our PPA assets, statements regarding the sufficiency of our capital resources, expected operating losses, expected revenues, expected expenses and our expectations concerning our business strategy. Forward-looking statements involve inherent risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, as a result of various factors including those risks and uncertainties described in the Risk Factors and in Management’s Discussion and Analysis of Financial Condition and Results of Operations sections of our most recently filed Annual Report on Form 10-K and our subsequently filed Quarterly Reports on Form 10-Q. We urge you to consider those risks and uncertainties in evaluating our forward-looking statements. We caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Except as otherwise required by the federal securities laws, we disclaim any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement contained herein (or elsewhere) to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.