Following the recent news regarding the acquisition of Pivot Power by the energy supplier EDF, Nirushan Rajasekaram, Power Analyst at GlobalData, a leading data and analytics company, offered his view on the news:
“The purchase of Pivot Power is part of EDF’s strategy to become a market leader in the charging infrastructure and storage space. In March 2018, the company announced its plan to add ten gigawatts of storage capacity by 2035, with an investment outlay of eight billion dollars. At present, EDF has around five gigawatts of operational storage assets, and the procurement of Pivot Power will add roughly another two gigawatts of capacity in the UK to the company’s portfolio. These are in various stages of development.”
New business cases are emerging
Mr Rajasekaram added: “GlobalData forecasts the battery storage market in the UK to reach 1.4 billion dollars by 2023. The business case for batteries is continually evolving, with new revenue streams opening up, such as frequency response, balancing mechanism and merchant power when integrated with renewables. Of late, large energy suppliers such as EDF are facing significant market pressure from smaller energy utilities, who are expanding their customer base by providing relatively cheaper tariffs. Retailing electricity has become highly competitive and this acquisition could mean that the company is seeking other profitable avenues for growth.”
Electric mobility as opportunity for growth
He further stated that “moreover, Pivot Power specialises in the segment of electric vehicle charging infrastructure. With the government promoting the transition towards a low-carbon economy, an increase in the adoption of EVs is expected, which is also an alternative growth opportunity for EDF. This acquisition echoes energy supplier’s earlier purchase of PowerFlex Systems in September, a start-up pioneering the EV charging network technology in California, a state with significant EV penetration. With these acquisitions, EDF will now have the capacity to offer comprehensive solutions, across the distributed energy ecosystem, comprising of solar, storage and EV charging.” (mfo)
