Finnish provider of energy solutions Wärtsilä has signed an agreement to acquire Greensmith Energy Management for an undisclosed sum. The acquisition of the U.S.-based provider of intelligent energy storage technology and solutions will enable Wärtsilä to expand its business in energy storage and to position itself on the global energy system integration market, the Helsinki-based company announced on Monday.
The transaction, yet to be confirmed by U.S. regulatory approvals/authorities, comes as no surprise, as rumors have been circulating for months. It follows a recent trend of large firms taking over small but growing energy storage companies.
According to Wärtsilä, the company aims to become a global system integrator with full in-house capabilities to be prepared for the growing demand for energy storage. In this context, the Finnish company sees an integration software platform such as Greensmith as a must have.
“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,” says Javier Cavada, President at Wärtsilä Energy Solutions.
Just recently the company announced its new hybrid power plants, that combine conventional power generation with energy storage, are using Greensmith´s energy management systems (EMS) software. The new energy solution uses batteries as spinning reserves, enabling the plant to adapt quickly to grid needs.
Funded in 2008, Greensmith today employs 40 people and deployed a third of total U.S. energy storage capacity in 2016. Inter alia the company and its partners delivered 20 MW to the 80 MWh lithium-ion energy storage project in Pomona, California. Greensmith claims that in total it has delivered in excess of 180 MW to some of the largest power companies globally.