US energy company Generac is acquiring Enbala Power Networks, a distributed energy resources technology company, to solidify its position in Smart Grid 2.0 technologies and open opportunities as a grid services provider.

Denver-based Enbala is a provider of distributed energy optimisation and control software needed to ensure the operational stability of power grids. Its Concerto platform is being used by utilities and energy retailers around the world to leverage the power of distributed energy resources (DERs) to respond to the real-time energy balancing needs of power systems and energy markets.

“We’re on the leading edge of a remarkable transformation of the electrical grid, moving from a dated and centralised power distribution model to one that will be digitised, decentralised and more resilient,” said Aaron Jagdfeld, chief executive officer of Generac. “Enbala is a proven virtual power plant and distributed energy resource management platform, and we believe their business model can be incredibly synergistic with our business. We’re proud to be at the forefront of the Smart Grid 2.0 with these new capabilities.”

With thousands of megawatts of residential and industrial standby power generation installed in the USA, Generac’s products can be leveraged in virtual power plant and distributed energy resource management system markets. The Concerto software platform enables the connection of DERs to register and participate in distributed energy aggregation and control programmes. This means otherwise dormant back-up power generation assets can come online as part of a distributed energy option and generate revenue for the asset owner.

As utility companies adopt cleaner forms of energy while simultaneously dealing with power disruptions, the opportunities to optimise the grid with DERs are becoming more creative. Rooftop solar, behind-the-meter battery storage systems, electric vehicles and flexible electricity load management are key asses of a healthy future for Generac and DERs management.

“Distributed generation is a critical next step for utility companies faced with meeting peak demand while also dealing with capacity constraints and regulatory restrictions,” said Jagdfeld. “Enbala and Generac will be able to harness the power of everything from solar-plus-storage systems to our own generators to help limit the need for new power plants and maintain the convenience and flexibility of diversified power production.”

Bud Vos, president and CEO of Enbala, added: “Together with Generac, we have an unprecedented opportunity to make our energy grids more efficient, resilient and economical. As part of the Generac team, we can now accelerate our vision for a cleaner grid, leveraging our technology and capabilities that help continuously balance supply and demand while enabling rapid and profoundly beneficial changes in our energy markets.”

The terms of the deal were not disclosed.

Founded in 1959, Generac is a designer and manufacturer of a wide range of energy technology products. Serving residential, light commercial and industrial markets, Generac’s products are available globally through a network of independent dealers, distributors, retailers, ecommerce partners, wholesalers and equipment rental companies, as well as sold direct to some end users.