Volvo Penta invests in UIG to accelerate BESS development
By Becky Schultz11 April 2023
Following on its announcement in March of a collaborative partnership, Volvo Penta has since acquired a minority stake in Utility Innovation Group (UIG), U.S.-based specialists in utility systems and decentralized energy solutions. The strategic investment will accelerate Volvo Penta’s entry into the utility sector, enabling further development of its battery energy storage subsystem (BESS) and power generation portfolio.
UIG brings together complementary business units in utility protection and controls engineering, substation and distribution development, microgrid development and energy finance, the company stated. It is experienced in conception, design, deployment and operation of microgrids across the U.S.
The investment by Volvo Penta has the potential to enable both companies to enhance their collective capabilities while jointly creating new solutions and market opportunities to advance electric grid infrastructure. It also targets providing more opportunities for mission-critical use cases, such as hospitals and data centers, and those who produce and consume energy in support of the electrical grid – dubbed “prosumers” – to connect energy sources with BESS-related technology to reduce reliance on the grid and build a more resilient energy ecosystem, said Volvo Penta.
Heléne Mellquist, president of Volvo Penta, cited the move as another proof point on the company’s journey to net zero and decarbonization beyond the transportation sector. “We see great potential in our investment and our collaborative partnership with UIG. Together we will be able to accelerate access to, and the adoption of, BESS-related solutions,” she said.
“Volvo Penta’s electrification platform offers differentiated energy storage performance for electrical resiliency within microgrid solutions as we design and build the electric grid of the future. With this strategic investment, we aim to deploy industry-leading solutions and new technologies, enabling digitalization, charging optimization and microgrid operations,” added Sidney Hinton, founder and CEO of UIG.
The transaction will have no significant impact on the Volvo Group’s earnings or financial position, the company noted.