A microgrid is a local energy grid with control capability, which means it can disconnect from the traditional grid and operate autonomously. With centralized local power generation, businesses and/or communities can have a say in how energy is generated and distributed. And they just may become the great equalizer between consumers and the electrical companies.
The Rise of the Microgrid
Microgrids are part of a growing trend toward “distributed energy,” power that’s produced independent of a traditional utility. Distributed energy is used by its producer, but is sometimes also sold to a utility and put back onto the general grid. In other words, electricity flows two ways, not one. Microgrids are well-suited to university campuses, corporate research parks, military bases and other insular environments that want to run on their own energy from start to finish. But more than that, microgrids are making their way to neighborhoods, office buildings, and beyond.
The increasing adoption of renewable power sources have made distributed power much more practical. It’s hard to imagine generating energy for standalone neighborhoods or communities using natural gas or coal. Fossil fuel-based electricity requires complex plants and refineries that cost billions of dollars and serve millions of buildings. Rooftop solar panels and clusters of wind turbines on the other hand can successfully generate enough energy to keep the lights on in just a handful, a few hundred or a few thousand homes. Renewables may not be able to meet the needs of entire cities today. But they can reliably serve people who live off the grid, or who want to declare independence from major utilities.
According to a research report from Markets and Markets ("Microgrid Market by Grid Type Global Forecast to 2022"), the microgrid market is estimated to reach USD 34.94 Billion by 2022, representing a CAGR of 10.9% between 2016 and 2022. Drivers include falling renewable prices, especially solar PV cells, low gas emissions, as well as a growing number of rural electrification projects in Africa and APAC.
Thermal Energy International Reports Revenue Growth of 82.4%; Gross Profit Up 87.3% for Fiscal 2016
This morning, Ottawa-based cleantech company, Thermal Energy International (TSX-V: TMG) reported its fiscal 2016 year end financial results. Highlights included:
“Fiscal 2016 was a strong year for both our heat recovery and GEM businesses. Our revenue rebounded, increasing more than 82% and resulting in the second most profitable year in the history of our company. While hospitals and food and beverage customers were the largest sources of revenue for the year, we continue to see applications for, and orders from, a variety of other sectors. Additionally, as we look ahead to fiscal 2017, we have a healthy order backlog of approximately $7.3 million, up from $5.9 million a year ago.”
Revenue for FY 2016 increased 82.4% to $12.4 million compared with $6.8 million in FY 2015. Sales of heat recovery systems increased by 108.0%, while sales of GEM condensate return systems increased by 57.7%.
Gross profit for the year increased 87.3% to $6.8 million compared with $3.6 million in FY 2015. The gross profit expressed as a percentage of sales was 54.8% in FY 2016 compared with 53.4% in FY 2015.
EBITDAS for the year was $564 thousand compared with negative $2.0 million in the prior year, representing an improvement of $2.6 million.
The Company has net income of $259 thousand for the year compared to a net loss of almost $2.2 million in FY 2015. Adjusted operating cash flow for the year was $710 thousand versus negative $1.4 million the year before.
For more information on Thermal Energy, visit their website at www.thermalenergy.com and be sure to check out our special On The Radar feature here.
Canadian cleantech company, Thermal Energy International (TSXV: TMG), announced a $500,000 hospital order this morning for its GEM venturi steam traps. Converting over to GEM steam traps is expected to provide the hospital with fuel and maintenance savings of approximately $282,000, resulting in a project payback of under two years. The GEM traps are also expected to reduce the hospital’s carbon emissions by 1,085 tonnes per year.
>> News Release <<
“This is our third significant hospital order in the last eight weeks for a combined total of more than $2.4 million. Hospitals consume vast amounts of energy. Our hospital customers see the value of becoming more environmentally sustainable and seek out savings opportunities that include using energy more wisely. By implementing our energy efficiency solutions, additional resources can be reallocated for core medical services including staff and equipment, while also contributing to a healthier environment through reduced emissions.” - William Crossland, President & CEO of Thermal Energy.
The increased energy efficiency and reliability of GEM steam traps mean short paybacks and permanent energy savings with no deterioration of those savings over time. The life cycle cost of the GEM steam trap is significantly lower than for conventional steam traps.
Unlike the traditional mechanical steam traps that will be replaced at the hospital, Thermal Energy’s venturi orifice designed GEM steam traps have no moving parts to wear or fail and come with a ten-year guarantee. Several case studies demonstrating the proven benefits Thermal Energy’s products have provided to hospitals can be found on the Company’s website at www.thermalenergy.com/hospitals.
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