India’s Ministry of Power has acquired UK combined heat and power firm Edina for £55m. The Indian ministry of power also plans to invest millions in the UK energy services market over the next two years.
The Energyst reports that the deal is structured via UK subsidiary, EnergyPro Assets Limited (EPAL), which is a joint venture between Energy Efficiency Services Limited (EESL), a publicly-owned energy services company overseen by India’s Ministry of Power and EnergyPro Ltd, a UK-based advisory company headed by Steven Fawkes that consults on energy efficiency projects.
Edina has around a quarter of UK gas engine market share and turns over around £100m.
EESL plans to use its acquisition both to grow the CHP market in India via ‘as-a-service’ models, and simultaneously tap into the UK energy services market.
The Ministry said it has earmarked £150 million to invest through EPAL into energy services business opportunities in the UK, EU and North America between 2017 and 2019.
“Leveraging Edina’s bespoke approach with our proven, innovative business models for scaling energy efficiency solutions across international borders, we are confident in the potential of this partnership to scale trigeneration technology adoption and to transform CHP market in India,” said Saurabh Kumar, managing director, EESL and chairman, EPAL.
Neelima Jain, CEO, EPAL and now director, commercial and business development at Edina, said the partnership “has far-reaching implications on the global energy sustainability scenario, and for promoting low-carbon growth by industries in Europe and Asia”.
She added: “With CHP technology’s contribution to the UK energy portfolio expected to double between 2015 and 2020, UK is a promising market for EESL to grow its own capabilities in the trigeneration sector.”
Edina joint managing director, Tony Fenton, said the opportunities in India “are particularly attractive for us, and we’d like to be able to introduce Indian industry to the benefits of CHP.”
The deal sees EPAL also acquire its first India-based trigeneration client. Edina has agreed to service Sterling & Wilson UK, the UK subsidiary of Sterling & Wilson India, to develop Short Term Operational Reserve (Stor) by supplying gas generating units that will provide 26MW of electrical power.