Itron, Inc. (ITRI) has been selected by the National Company of Measurement and Control Instruments (“ENAMC”) to install C&I advanced data collection system in Algeria over the next 18 months. This initiative was taken to support the modernization of the electricity network and assist the clients (industrial and commercial) to manage their electricity consumption more efficiently in Algeria.
Per the deal, ENAMC will be producing the meters while Itron will be supplying the modems. In addition, each center will be furnished with Itron’s data collection system and the IT servers required for operating the system.
ENAMC is a subsidiary of Sonelgaz (National Society for Electricity and Gas), a state owned utility in charge of electricity and gas distribution in Algeria. ENAMC will utilize smart metering technology of Itron at 58 distribution centers across Algeria.
The partnership will help Itron foster growth by increasing the demand for its products in the emerging market. Further, the initiative is expected to be welcomed by the electricity users of Algeria as it will help them particularly to conserve the non-renewable source of energy.
Earlier, Itron was selected by the Burlington Electric Department (“BED”), based in Burlington, Vermont, to provide smart grid solution to manage its electric grid more adeptly. The project of BED included 20,000 smart meters, network communications infrastructure and professional services provided by Itron.
With the installation of its four-millionth smart meter by South California Edison (“SCE”) Itron reached a new milestone in the field of smart meter technology. The smart meters and smart metering systems support many programs and services that help consumers to manage their electricity consumption along with saving energy and money on utility bills.
However, Itron faces tough competition from a large number of companies offering similar products, systems, and services. Some of its well-known competitors include General Electric Company (GE), Cooper Industries Ltd. (CBE) and Badger Meter Inc. (BMI).
Moreover, competition in the Advanced Metering Infrastructure (:AMI) market, especially in North America, is ever increasing. Intense competition may lead to price reduction. Itron must win new contracts to gain market share in the AMI market.
Currently, we have a long-term Neutral recommendation on the stock, which is in line with a shirt-term Zacks #3 Rank (Hold).
More From Zacks.com