EMC is engaged in the development of both grid-connected and off-grid microgrid projects, including battery energy storage systems and solar photovoltaic (PV) farms.
The company is currently working with Carnegie on its wave energy and microgrid design project in Mauritius.
The acquisition is subject to formal agreements and shareholder approval. With this acquisition, Carnegie will become the first Australian Securities Exchange (ASX) listed company to have a dedicated renewable energy microgrid project delivery capability.
As per the acquisition agreement, Carnegie will invest about AU$2.6m ($1.98m) in staged cash and AU$10.4m ($7.92m) in shares of Carnegie to claim the 65% stake in EMC. Carnegie already owns 35% stake in EMC.
With this acquisition, Carnegie says that it will be in the forefront of designing, developing, financing, constructing, operating and maintaining microgrids, while using wave, solar, wind, energy storage, desalination and diesel for on-grid and off-grid applications in Australia and other places internationally.
Carnegie Wave Energy managing director Michael Ottaviano said: “We’ve been extremely impressed with EMC’s capability to deliver unique, pioneering microgrid systems to blue-chip clients such as Western Power, Synergy, Horizon Power, Water Corp oration and the Australian Department of Defence.
“The potential for the global microgrid market is estimated at $40bn by 2020. This acquisition unlocks Carnegie’s ability to deliver a unique, in- house capability to capitalise on a rapidly growing segment of the renewable energy market globally.
“Microgrids are increasingly a major part of the renewable energy market as they can deliver cost competitive, clean power and energy security. It is the right time to seize this opportunity.”
EMC now has a significant track record of grid connected and offgrid microgrid projects including New Zealand’s first grid connected, commercial battery energy storage system (BESS) for Alpine Energy.
It had installed solar, BESS and diesel powered microgrid project on Mackerel Island near Onslow, Western Australia. The microgrid project has remote monitoring capabilities and had constructed a 600KW solar farm in Rottnest Island, Western Australia for Hydro Tasmania.
EMC managing director John Davidson said, “Over the past few years, EMC has grown from an innovative start up to delivering major contracts to local utilities, developing a unique capability that can be applied across Australia and globally.
“With Carnegie we will be able to grow larger, more quickly and capture this enormous market opportunity.”
