Ameresco (AMRC) Inks Agreement for Battery Storage Project
Ameresco, Inc. AMRC recently inked an agreement with an electric cooperative, United Power, to install a battery storage project in the latter’s electric distribution system, thus assisting United Power in seamlessly integrating its renewable resources.
Details of the Deal
Per the deal, Amerescowill install battery arrays for a 78.3-megawatt (MW)/313.34 MW-hour (MWh) battery storage project in United Power’s service territory. AMRC will deliver four 11.75 MW and four 7.84 MW battery arrays for eight different substation sites of United Power.
The agreement spans over 20 years, thus ensuring a stable income flow for Ameresco over a long period.
Ameresco’s Growth Prospects in Battery Storage
The increased penetration of the global solar market is fueling the growth of the battery storage market. Underpinned by increased investments in the solar market by nations, the battery storage market is likely to expand in the days ahead, which unfolds compelling growth opportunities for AMRC with wide exposure in the battery storage market.
Per the report from the Markets and Markets firm, the global battery energy storage market is anticipated to witness a CAGR of 26.4% over the 2023-2028 period.
Ameresco’s proficiency in energy management and sustainable solutions strategically situates the company to leverage opportunities in this burgeoning market in its favor. Its wide experience in executing various battery storage projects for varied sectors provides the company with a competitive edge and enables it to secure impressive deals, like the latest one.
Peer Moves
Such abounding growth prospects offered by the battery storage market signal immense potential for further expansion for more companies in the alternate energy space. Some of them are listed below:
Clearway Energy CWEN: In January 2023, the company announced that its 36 MW solar farm with 144 MWh of battery storage on Kamehameha Schools’ lands in Waiawa in Central O‘ahu achieved commercial operations.
The Zacks Consensus Estimate for Clearway Energy’s 2023 sales suggests a growth rate of 12.7% from the prior-year reported figure. The Zacks Consensus Estimate for CWEN’s 2024 earnings has been revised upward by 1.7% in the past 60 days.
Energy Vault Holdings NRGV: In January 2023, the company, along with Pacific Gas and Electric Company, declared to deploy and operate a utility-scale battery plus green hydrogen long-duration energy storage system with a minimum of 293 MWh of dispatchable carbon-free energy.
The Zacks Consensus Estimate for Energy Vault’s 2023 sales suggests a growth rate of 157.9% from the prior-year reported figure. The Zacks Consensus Estimate for NRGV’s 2024 sales indicates a growth rate of 87.3% from the prior-year estimated figure.
Price Movement
In the past year, shares of Ameresco have increased 14.4% against the industry’s decline of 7.8%.
Image Source: Zacks Investment Research
Zacks Rank & a Stock to Consider
Ameresco currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the same industry is Gevo GEVO, which has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Gevo’s 2023 sales pegged at $15.5 million suggests a significant improvement from the prior-year reported figure. The Zacks Consensus Estimate for Gevo’s 2024 sales indicates an improvement of 81.2% from the prior-year estimated figure.
The Zacks Consensus Estimate for Gevo’s 2023 earnings implies an improvement from the prior-year reported figure. In the past three months, shares of GEVO have increased 35.5%.
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