Ameresco Inks Battery Energy Storage System Contract With Silicon Valley Power: Details
Portfolio Pulse from Shivani Kumaresan
Ameresco Inc (NYSE:AMRC) has signed a contract to build a battery energy storage system (BESS) for Silicon Valley Power (SVP) to enhance electrical system reliability. The BESS, named Kifer Energy Storage LLC, will have a capacity of up to 50-megawatts and 200 megawatt-hours. Construction is set to begin in mid-2024, initiating a 25-year lease and Energy Storage Agreement with the City of Santa Clara. Ameresco will develop, own, and operate the BESS, which aims to integrate renewable energy, reduce reliance on gas-fired generation, and cut emissions. Despite the positive news, AMRC shares dropped by 1.90% to $28.39.
November 20, 2023 | 3:50 pm
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NEGATIVE IMPACT
Ameresco Inc has secured a contract to construct a 50-MW BESS for SVP, starting a 25-year lease and Energy Storage Agreement. The project supports renewable energy integration and emission reduction, but shares fell by 1.90%.
The contract for the BESS project is a significant development for Ameresco, indicating potential future revenue growth and alignment with renewable energy trends. However, the immediate market reaction was negative, with a 1.90% decline in share price, which could be due to broader market conditions or investor concerns about the costs and returns of the project. The short-term impact is negative, but the long-term outlook may be positive as the project progresses.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100