The sale of these projects is EnSync Energy's first transaction of a portfolio of project Power Purchase Agreements (PPAs) and includes a major portion of EnSync Energy's PPA backlog reported at the end of our third quarter. Three of the five portfolio projects include EnSync Energy storage, including Agile™ Hybrid Storage, and EnSync Energy's Matrix™ Energy Management systems. All of the systems are sited behind-the-meter at condominiums or university campus buildings on Oahu and the Island of Hawaii, and represent the first ever solar plus storage PPAs in Hawaii. EnSync will provide ongoing project services through a contract with AEP OnSite Partners.
"We're very pleased to complete this transaction with AEP OnSite Partners, a recognized leader in renewable energy investments," said Brad Hansen, President and CEO of EnSync Energy. "Our project execution on this portfolio has been outstanding and this sale, which could be the first of its kind in the renewable energy market, provides validation of our PPA business model. When we entered the Hawaiian market with our PPA business model featuring leading energy management and energy storage systems, it was novel and unique in the islands. Since that time our pipeline and backlog of PPAs has continued to build and we look forward to continuing this growth over the coming quarters and years."
EnSync Energy has built a successful position in the Hawaiian market, and through its subsidiary company, Holu Energy, has developed a significant project pipeline in the islands.
"AEP OnSite Partners collaborates with universities, communities and businesses to take an active role in supporting advanced energy management in a way that is both affordable and hassle free. 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, 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."
Included in the portfolio is EnSync Energy's proprietary Matrix™ Energy Management platform, which prioritizes in real time electricity from the grid, from distributed generation and from energy storage. The Matrix platform enables numerous opportunities to minimize electricity costs to the end-use consumer, while maximizing revenue generation and return on investment to PPA investors such as AEP OnSite Partners. Additionally, the Matrix ensures that the buildings' future electrical needs are efficiently and economically accommodated to take advantage of the myriad of applications, government policies, and technology updates that will occur over time. The Matrix meets all requirements of the State of Hawaii for intelligent power control systems.
Hansen concluded, "The purchase of these projects validates our PPA business model, ability to execute projects and our technology. We're excited by the outstanding progress we've made and look forward to building on this initial success."
