Commercial, Industrial, Solar - February 24, 2017
Mitsui acquires SunEdison's C&I business
Japanese energy and industrial firm Mitsui & Co. Ltd. has acquired the commercial and industrial division of SunEdison Inc.
The C&I business of the now-bankrupt solar developer, including solar projects and employees, will form part of Mitsui's Forefront Power LLC, a newly established subsidiary. In addition to distributed solar generation, Mitsui said it hopes to expand Forefront Power's offerings to include a range of energy management services for C&I customers.
The acquisition is reflective of a broader consolidation trend among C&I energy management companies. According to GTM Research, it marks the fifth such deal this year, continuing a trend that picked up in 2016 of large energy companies and service providers targeting the segment.
Some examples include Schneider Electric's recent acquisition of Renewable Choice Energy and the acquisition of energy storage and intelligent software company Demand Energy Networks by the North American renewable energy subsidiary of Italian power company Enel SpA.
Mitsui said it views distributed solar generation as "a key growth area in a society which places an increasing emphasis on environmental, social, and corporate governance (ESG), as well as the need for greater grid resiliency." The company said governmental incentives and the continuing decline of PV module prices also serve as a driving force for the industry.