FRAMINGHAM, Mass. & HONOLULU - Ameresco, Inc. (NYSE:AMRC), a cleantech integrator, in collaboration with the U.S. Navy and Hawaiian Electric Company, has been selected to be a part of the U.S. Department of Energy's Grid Resilience and Innovation Partnerships (GRIP) Program. This initiative will see the creation of the Pu`uloa Microgrid, aimed at enhancing energy resilience for Joint Base Pearl Harbor Hickam (JBPHH) and the broader Oahu community.
The project, which will incorporate smart grid technology within a 99 MW renewable dispatchable generation resource, is designed to provide critical grid reliability improvements for Oahu. The DOE's GRIP Program support will expedite the deployment of a hybrid microgrid, showcasing how smart grid technology connected to clean energy can improve grid reliability and diversify the energy mix.
The Pu`uloa Microgrid will function as a reliable power source for the Oahu grid under normal conditions and can disconnect and redirect power to JBPHH during outages, ensuring national security needs are met. Additionally, the system will offer black start capabilities to restore power without external electricity and improve power quality with ancillary services.
The microgrid will also reinforce the grid's resilience by enhancing interconnections between HECO substations at JBPHH with new transmission infrastructure. The integration of these technologies is expected to strengthen the grid against potential disruptions.
Community benefits from the project include a commitment to local labor, with at least 75% of construction jobs sourced locally, creating approximately 40 jobs. Ameresco will also invest in workforce development scholarships and support local schools and environmental initiatives.
Maria Robinson, Director of the Grid Deployment Office, U.S. Department of Energy, highlighted the project's role in enhancing grid resilience and providing affordable, clean energy, while also creating job opportunities.
Nicole Bulgarino, Executive Vice President at Ameresco, expressed enthusiasm for being chosen for the GRIP program, noting the project's alignment with Ameresco's commitment to innovation, sustainability, and community engagement.
The Pu`uloa Microgrid represents an innovative approach to addressing energy resilience challenges, reflecting Ameresco's broader efforts to develop renewable energy solutions. This information is based on a press release statement.
In other recent news, Ameresco has been making significant strides in the clean energy sector. The company's Q2 revenues increased by 34% to $438 million, and it recorded a 36% backlog growth to $4.4 billion. Ameresco also brought 155 megawatts of Energy Assets into operation, marking a milestone for the company. However, the company adjusted its fiscal year 2024 EBITDA guidance by 2% due to cost overruns from Southern California Edison projects, as reported by Piper Sandler.
Ameresco is nearing the completion of two major battery energy storage system projects in partnership with Southern California Edison, with a third project scheduled for substantial completion in the fourth quarter of 2024. The company also initiated a substantial solar photovoltaic installation at the Somersworth Landfill, which is expected to produce over 67 million kWh over two decades.
Jefferies increased its price target for Ameresco to $35 from the previous $33, maintaining a Hold rating on the stock. This revision follows the near completion of two out of three storage projects that Ameresco is developing for Southern California Edison. Baird, a financial services firm, raised its price target for Ameresco from $32.00 to $42.00, maintaining an Outperform rating on the stock.
These are recent developments for Ameresco, a company committed to delivering energy efficiency and renewable energy solutions. The company's performance and the completion of its energy assets are likely to contribute to its growth and financial results.
InvestingPro Insights
Ameresco's involvement in the Pu`uloa Microgrid project aligns with its position as a cleantech integrator and its focus on innovative renewable energy solutions. This project could potentially bolster the company's revenue growth, which according to InvestingPro data, has been strong with a 33.91% increase in quarterly revenue as of Q2 2024.
An InvestingPro Tip indicates that analysts anticipate sales growth for Ameresco in the current year, which is consistent with the company's engagement in large-scale projects like the Pu`uloa Microgrid. This project, along with others in Ameresco's pipeline, could contribute to sustaining this growth trajectory.
However, investors should note that Ameresco operates with a significant debt burden, as highlighted by another InvestingPro Tip. This factor may be worth monitoring, especially as the company takes on substantial projects that could require significant capital investment.
For those interested in a deeper analysis, InvestingPro offers 13 additional tips for Ameresco, providing a more comprehensive view of the company's financial health and market position.
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