Menomonee Falls-based Ensync Inc. has sold several power purchase agreements to AEP OnSite Partners for an undisclosed price.
The company, which operates as EnSync Energy Systems and was formerly known as ZBB Energy Corp., has built several solar and energy storage systems in Hawaii and has now sold the right to sell power through those systems to AEP, which is a subsidiary of Columbus, Ohio-based American Electric Power. The power purchase agreements are for large users like universities or condo associations, said Dan Nordloh, executive vice president at EnSync.
“We will commit to owning those assets and then the off-taker…commits to paying us a certain amount for that electricity for the next 20 years,” Nordloh said. “EnSync’s balance sheet and business model do not provide for us to own a great number of power purchase agreements. What our model does is have us create tranches of projects and then we sell those. We sell them to people who are looking for a good financial investment.”
EnSync has found success in Hawaii, where energy prices are high and electricity is less reliable, Nordloh said. Instead of relying on the energy grid, EnSync has developed Matrix Energy Management Systems that leverage a variety of energy sources, including the grid, stored energy and renewables, to help address these challenges.
“The sale of power purchase agreements to AEP truly represents only the first portfolio of what should now be multiple portfolios out of the state of Hawaii,” he said.
“The purchase of these projects by AEP OnSite Partners provides the University of Nations and these four communities with risk-managed affordable solar energy to help meet their power needs without requiring them to own or maintain a solar system,” said Joel Jansen, chief operating officer of AEP OnSite Partners. “Hawaii provides ideal conditions to create customer value with solar resources combined with energy storage. These projects are the first integrated solar and storage projects in Hawaii. We’re excited about the opportunity to serve these customers with these innovative distributed energy assets.”