Hanwha Q CELLS Acquires US ESS Design Firm 'Jelly'... Full-Scale Entry into US ESS Market

[Asia Economy Reporter Hwang Yoon-joo] Hanwha Solutions has laid the groundwork to secure new growth engines in its energy solutions sector. Through the acquisition of a U.S. energy software company, it aims to evolve from a manufacturing business focused on solar cells and modules to a future-oriented energy company based on the 4th industrial revolution, utilizing big data and artificial intelligence (AI).

Hanwha Solutions Q CELLS Division (Hanwha Q CELLS) announced on the 9th that it has signed a contract to acquire 100% of the shares of the U.S. software company Growing Energy Labs (GELI).

This contract marks the first merger and acquisition (M&A) since the launch of the integrated corporation Hanwha Solutions following the merger of Hanwha Chemical and Hanwha Q CELLS & Advanced Materials in January this year. The acquisition is expected to be completed by the end of the year at the latest.

Founded in 2010 in San Francisco, USA, GELI develops and sells its own energy management system (EMS) that controls commercial solar power generation facilities and energy storage systems (ESS) through data analysis technology.

GELI employs top-level executives and IT personnel, including CEO Dan Ropelien, a Northwestern University Kellogg School of Management graduate with experience at McKinsey, and founder Ryan Watena, an MIT alumnus.

With this acquisition of GELI, Hanwha Q CELLS can enter the highly profitable distributed energy solutions market. Until now, it earned revenue by selling photovoltaic (PV) modules, but through the GELI acquisition, it will be able to expand its business globally by leasing solar power packages (PV+ESS) to customers and then signing power trading contracts.

This is possible because GELI collects users' power consumption data and analyzes usage patterns using its proprietary AI technology. This allows users to select the most efficient rate plans and sell any surplus solar-generated electricity to other users.

The global energy retail market, estimated to be worth over 2,000 trillion won, is already undergoing rapid changes. With the inevitable expansion of greenhouse gas-free renewable energy, distributed generation led by individuals, companies, and local governments is spreading, and the integration of information and communication technology (ICT) is transforming the energy market paradigm.

Hanwha Q CELLS recognized the necessity of integrating software technology into the energy industry and has been reviewing the acquisition of GELI since the end of last year. Although the contract was initially planned for the first quarter of this year, the spread of COVID-19 led to a reassessment of the company's investment plans, almost jeopardizing the acquisition. However, judging that acquiring GELI was essential for entering the distributed energy market, the negotiation schedule was extended, and the acquisition was ultimately confirmed.

Kim Hee-chul, President of Hanwha Q CELLS, stated, “With the acquisition of GELI, Hanwha Q CELLS will develop competitive energy solutions and grow into a leading company in the rapidly expanding global distributed energy market.”

This content was produced with the assistance of AI translation services.