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Smart Metering Systems enhances its EV charging and energy data management portfolio

13:20, 21st June 2022
Victor Parker
Vox Newswire
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Smart Metering Systems (SMS Follow | SMS) announced today two new key investments to enhance its portfolio of EV charging and energy data management solutions. Smart Metering Systems (SMS) is an energy infrastructure company focused on carbon reduction (CaRe) technologies such as intelligent metering, energy data analytics, grid scale  batteries, and EV infrastructure. 

As energy prices continue to soar, more consumers and investors are looking into smart energy generation and consumption technologies of the sort SMS offers. The Company's two new investments, totaling £3.4m, are in Clenergy EV Limited and n3rgy Data Ltd.

Clenergy EV Limited

Clenergy EV is a software company and a charge point operator of EV charging infrastructure. Clenergy EV's business is in the public charging and fleet sectors, and its platform is currently used in more than 1000 EV chargers in the UK. Clenergy EV provides a comprehensive management platform that enables complete oversight of all EV charge point assets.

SMS has so far invested £2m to acquire a 25% interest in Clenergy EV with an option to invest a further £2m after one year for an additional 26% interest (51% total). After 5 years, SMS can acquire 100% of shares. The initial investment complements SMS's existing EV installations and enables a fully end-to-end integrated EV charging platform. SMS has already adopted the end-to-end integrated model for its meters, data, and grid-scale batteries. In a a June 2021 report, SMS identified a UK addressable market opportunity of over £9 billion for EV charging infrastructure by 2030.

n3rgy Data Ltd

n3rgy is a software company running a software-as-a-service (SaaS) platform that enables and facilitates the use of energy consumption, generation, and tariff data from smart meters registered on the Data Communications Company (DCC) platform. This data is then used for settlement, billing, energy management, and a growing market of wider applications and services.

SMS has acquired 100% of n3rgy for £1.4m with a further £0.8m payable by SMS subject to n3rgy achieving certain performances targets. This acquisition will complement SMS' existing capabilities in smart energy data, giving the company a strong competitive position in a growing market as the industry moves to mandatory half-hourly (HH) settlement in 2025.

HH settlement results in a more accurate picture of energy usage and enables suppliers to pay only for energy used as opposed to an average estimate. SMS sees HH settlement as a large future market opportunity, hence its early positioning in the space. The company has estimated that the HH settlement market could yield £6 per meter point revenue with a potential EBITDA in excess of £90m/year.

Outlook:

The Company also commented on H1 performance, revealing that its smart meter installation run rate has continued in line with expectations, a 50MW grid-scale battery project continues to perform strongly, and an additional 660MW pipeline is progressing in line with expectations. A full H1 update will be released on 27 July 2022.

Tim Mortlock, CEO, commented: "Our investment in Clenergy EV will help to accelerate our advancement into the highly attractive EV charging market and the acquisition of n3rgy enables us to build on our strong existing position in energy data solutions."

Stock Chart | SMS

Elsewhere in the sector: eEnergy

Another innovator in the smart energy space we have covered is eEnergy which recently detailed on its own investment in smart metering. eEnergy has an 85.5% share in the MY ZeERO smart metering system that enables customers to measure, manage, and visualise energy usage at a granular level in real time. The service is a monthly subscription, delivering AI-driven automated insights.

eEnergy has estimated that 30% of energy consumed by commercial buildings is wasted, which can be alleviated by using their eMeter solution. So far eEnergy has 522 eMeters under contract delivering £0.8m in revenue with deployments accelerating. The company hopes to have 20,000 eMeters under management in 5 years.

The smart energy sector is only expected to grow amid soaring energy prices, expansion of the SaaS industry, and large-scale transition to EVs. Follow our coverage as these events unfold.

Follow News & Updates from Smart Metering Systems: Follow | SMS and eEnergy: Follow | EAAS

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Disclaimer & Declaration of Interest

The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.

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