Finnish power equipment firm Wärtsilä has immediately followed up its launch of hybrid and standalone energy storage systems with the acquisition of system integrator and software specialist Greensmith Energy Management Systems (Greensmith).
Wärtsilä officially launched its energy storage solutions last week, emphasising that a tie-in with Greensmith on the latter’s GEMS energy management control platform gave the Finnish company scope to become a systems integrator in its own right.
Leaning on years of experience in manufacturing various engines for power applications, Wärtsilä launched hybrid systems combining engines with battery storage as well as turnkey energy storage systems, stating that it would be focusing on “high market potential” areas such as remote and off-grid applications and PV self-consumption.
E.On sells stake, retains partnership
The acquisition of Greensmith, which is expected to be completed by July 2017, remains subject to US regulatory approvals, with ownership of the company to transfer over to Wärtsilä on completion. Wärtsilä said that taking over the US company, which has been involved in the execution of over 180MW of energy storage projects, would help “expand its footprint in the energy storage market and position itself as a leading global systems integrator”.
GEMS, Greensmith’s integration software platform now in its fifth incarnation, was considered vital to the deal, Wärtsilä said, as it will give the company in-house capabilities to combine and optimise diverse forms of power generation and energy storage with demand side management.
“Together with Greensmith we will become a global energy systems integrator. Greensmith provides unparalleled software and energy storage knowledge and we provide our global footprint, EPC expertise and large sales network. A perfect match,” Wärtsilä Energy Solutions president Javier Cavada said.
In late 2015, Germany-headquartered multinational utility E.On invested in Greensmith, again partly for access to the tech-focused startup’s software and controls platforms, purchasing a further stake in September 2016. The pair is also collaborating on the 10MW Iron Horse project in Tucson, Arizona. E.On announced this morning that it had sold its shares in Greensmith but that the partnership between the two companies will continue.
“Greensmith is one of the true pioneers in the energy storage business,” Dr. Philipp Ulbrich, VP of strategic co-investments at E.On’s corporate venture capital arm said.
“After a very successful partnership both as investor and business partner, we are very excited about continuing the great relationship with Greensmith as part of Wärtsilä, providing even better energy storage solutions for E.On customers in the USA and Europe.”
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