Centrica announces disappointing results but forges ahead on distributed energy

Despite disappointing results, Centrica‘s midweek announcement showed some promising news for the company in the area of distributed energy.

The company reported that its sales ramped up materially in the sector in q4 2017, much helped by the acquisitions of Panoramic Power, ENER-G Cogen and REstore. Centrica is targeting ‘at least’ a 50% increase in revenue for distributed energy in the coming year.à‚ 
Iain Conn of Centrica
“We continue to develop our capabilities in our DE&P business, which delivered increased revenue, customer sites, secured revenue and capacity under management in 2017. We are beginning to see real momentum.”

“Since the formation of the DE&P business unit in H2 2015, we have grown our capability both organically and inorganically. The targeted acquisitions of Panoramic Power, REstore and ENER-G Cogen provide us with strong positions in each of the three strategic pillars and enable us to capitalise on the global trend towards distributed energy and to develop a range of products and services to meet the needs of customers.”

The subscription-based Panoramic Power energy insight product provides customers with real-time visibility of their energy usage plus actionable insights.à‚ 

“We now have 53,000 sensors deployed across more than 1,800 sites in 30 countries and are collecting around 14bn data points per month. It has proved successful in changing the dynamic of the conversation with customers and provides opportunities to cross-sell energy optimisation and solutions services.”

Meanwhile REstore, Europe’s leading demand response aggregator, was acquired in November and provides key capabilities in energy optimisation and provides over 850 MW of flexible power capacity to grid operators.à‚ 

Meanwhile in energy solutions, DE&P now has over 1,400 long-term contracted sites and active solutions, mostly CHP-based, in 13 countries, having sold both off-the-shelf and bespoke end-to-end solutions, including an expanded distributed solutions offering in North America,which will be a major focus area for growth.à‚ 

In total, the number of DE&P active customer sites has increased by 22% over the past 12 months, with growth particularly strong in Q4 2017.à‚ 

“We will continue to make further investment to drive this growth and therefore expect the current year operating loss to be similar to 2017,” the report said.

Centrica buys demand response aggregator REstore for $81m

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