Ameresco Provides Southern California Edison (SCE) Project Update
FRAMINGHAM, Mass.–(BUSINESS WIRE)–Ameresco, Inc. (NYSE: AMRC), a leading clean technology integrator specializing in energy efficiency and renewable energy, today announced updates on recent communications with the batteries for Ameresco’s Battery Energy Storage System (BESS) projects with Southern California Edison Company (SCE). Due to COVID-19 related lockdowns in several regions of China, the supplier has indicated to Ameresco a negative impact on the supplier’s ability to deliver the batteries within the agreed time frame. In addition, China’s recently implemented transportation security policies may cause delays in the shipment of part of the batteries.
Ameresco has evaluated the circumstances described in the vendor communications and the impact they may have on the schedule of BESS projects. While these circumstances may prevent Ameresco from fully completing the three BESS projects by August 1, 2022, Ameresco believes that the events described in the communications constitute force majeure events under the Engineering, turnkey procurement, construction and maintenance of Ameresco dated October 20, 2021 with SCE (the “EPCM Contract”). Ameresco has therefore informed SCE and is in communication with SCE and the supplier regarding the circumstances. Under the EPCM Agreement, the Guaranteed Substantial Performance Date for BESS projects may be extended without the imposition of force majeure damages.
In the face of market challenges, important milestones have already been achieved in BESS projects, including securing high and medium voltage transformers, auxiliary transformers, inverters, all switchgear and auxiliary equipment. Construction activities continue at all project sites in preparation for the delivery of the batteries. Ameresco is also actively working with its suppliers and SCE to avoid or mitigate potential delays, including working with the Port of Long Beach on expedited vessel and container handling.
Ameresco continues to monitor developments in China and their potential effects on BESS projects. Based on its current visibility, Ameresco does not expect potential battery supply delays to have a material impact on 2022 results and reaffirms the full-year earnings guidance announced on February 28, 2022.
Ameresco expects to provide further updates and insights on the BESS projects when it announces its financial results for the three months ended March 31, 2022 in early May.
About Ameresco, Inc.
Founded in 2000, Ameresco, Inc. (NYSE: AMRC) is a leading clean technology integrator and developer, owner and operator of renewable energy assets. Our comprehensive portfolio includes energy efficiency, infrastructure upgrades, asset sustainability and renewable energy solutions delivered to customers across North America and Europe. Ameresco’s sustainability services in support of customers’ pursuit of Net-Zero include upgrades to a facility’s energy infrastructure and the development, construction and operation of distributed energy resources . Ameresco has successfully completed energy-saving and environmentally responsible projects with federal, state and local governments, healthcare and educational institutions, housing authorities, and commercial and industrial customers. Headquartered in Framingham, MA, Ameresco has more than 1,200 employees who provide local expertise in the United States, Canada and Europe. For more information, visit www.ameresco.com.
All statements contained in this filing regarding Ameresco, Inc.’s future expectations, plans and prospects, including statements about expected future financial results, the expected timing of the SCE project and the nature and duration of the circumstances surrounding project, and other statements containing the words “projects”, “believes”, “anticipates”, “plans”, “expects”, “will” and similar expressions, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements due to various important factors, including the timing and ability to conclude contracts for awarded projects on the terms offered or not at all; the timing of work we perform on projects for which we recognize revenue based on a percentage of completion, including the ability to promptly execute recently signed contracts; demand for our energy efficiency and renewable energy solutions; our ability to arrange financing to fund our operations and projects and to meet the covenants of our existing debt agreements; changes in federal, state and local government policies and programs related to energy efficiency and renewable energy and the financial health of the government; the ability for customers to cancel or postpone contracts included in our backlog; the effects of our acquisitions and joint ventures; the seasonality of construction and demand for our products and services; a client’s decision to delay our work or other risks related to a particular project; the availability and costs of labor and equipment, particularly in light of global supply chain challenges; our reliance on third parties for our construction and installation work; the addition of new customers or the loss of existing customers, including our dependence on the agreement with SCE for a significant portion of our revenues in 2022; the impact of Covid-19 on our business and the SCE project; the market price of the Company’s shares prevailing from time to time; the nature of other investment opportunities presented to the Company from time to time; the Company’s operating cash flows; cybersecurity incidents and breaches; and other factors discussed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, filed with the United States Securities and Exchange Commission (SEC) on March 1, 2022. The forward-looking statements included in these represent our opinions as of the date hereof. We anticipate that subsequent events and developments will cause our views to change. However, while we may choose to update these forward-looking statements at some point in the future, we expressly disclaim any obligation to do so. These forward-looking statements should not be taken to represent our views as of any date subsequent to the date hereof.