Energy Efficiency Services Limited's UK arm EPAL acquires Edina for 55 million pounds
The Energy Efficiency Services Limited (EESL) aims to tap into UK's 6 billion pounds (Rs 53,782 crore) energy efficiency market, expanding the offering in the energy service contract model for CHP technology. On the other, the EESL intends to bring CHP technology to India, providing an integrated service offering to industries that would enable them to receive equipment maintenance, electricity, heat and power at no upfront costs for technology installation.
State-owned Energy Efficiency Services Limited (EESL) today said its arm EPAL has acquired UK-based energy solutions provider Edina for 55 million pounds. "The 55 million pounds (Rs 493 crore) acquisition is the first-of- its-kind venture by an entity (EESL) under the Ministry of Power, Government of India and is effected through its UK subsidiary, EnergyPro Assets Limited (EPAL)," an EESL statement said. It said the Edina has over 30 years of operational experience and is recognised as the market leader in the UK in gas engines, commanding 27 per cent of the market share. Earning annual turnover of ?100 million (Rs 896 crore), Edina services over 400 customers, providing bespoke containerised solutions that reduce customers' energy costs and carbon emissions, while also providing a continuous and reliable power supply, from sites in the UK, Ireland and Australia.
Edina is the sole distributor of MWM gas engines in the UK and Ireland, and of Perkins diesel engines in Ireland. "Leveraging Edina's unique 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.
"The acquisition is therefore also an important strategic step in our continued efforts towards facilitating India's energy security and sustainable energy supply," Saurabh Kumar, Managing Director, EESL and Chairman, EPAL said.
With CHP technology's contribution to the UK energy portfolio expected to double between 2015 and 2020, the UK is a promising market for the EESL to grow its own capabilities in the trigeneration sector, Neelima Jain, CEO, EPAL and now Director, Commercial and Business Development, Edina, said in a statement.
Through the acquisition, EPAL has also acquired its first India-based trigeneration client. The Edina has agreed to service Sterling & Wilson UK Ltd, 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.
Located in Skelmersdale, West Lancashire, England, the project aims to supply power to the UK national grid at times of peak demand, while addressing shortages in electrical capacity at the company's own sites. The UK-based servicing opportunities with India-based clients, like Sterling Wilson, will help the EESL in its expansion plans.
On the one hand, the EESL aims to tap into UK's 6 billion pounds (Rs 53,782 crore) energy efficiency market, expanding the offering in the energy service contract model for CHP technology. On the other, the EESL intends to bring CHP technology to India, providing an integrated service offering to industries that would enable them to receive equipment maintenance, electricity, heat and power at no upfront costs for technology installation.
Tony Fenton, Joint Managing Director, Edina said: "The opportunities in a vibrant and dynamic economy like India's are particularly attractive for us, and we'd like to be able to introduce Indian industry to the benefits of CHP (combined heat and power) and our unique service offering".
The EESL is implementing a global strategy and commitment to invest 150 million pounds (Rs 1,343 crore) through the EPAL into energy services business opportunities in the UK, EU and North America between 2017 and 2019.