Pioneer Power Solutions, Inc. a company engaged in the manufacture, sale and service of electrical transmission, distribution and on-site power generation equipment, announced that over the last 60 days, the Company has booked more than $3.6 million in distributed generation business, reflecting several orders from new customers.
Nathan Mazurek, Pioneer's Chairman and Chief Executive Officer, said, "Distributed generation and the use of microgrids represent some of the fastest growing end markets in our industry, and it is an area we see as a particularly strong opportunity for Pioneer. Medium and large enterprises are looking for solutions to reduce reliance on utilities and the susceptibility of the grid to catastrophic events, while also lowering energy costs and improving efficiency. This emerging trend creates opportunities for leaders in custom distributed generation and microgrid solutions and for Pioneer.
“These solutions require highly customized components, and Pioneer has a proven history of working with customers to create high-quality, customized solutions. These significant orders demonstrate our rapid penetration into these rapidly growing end markets, and reinforce our confidence in our guidance for the full year. Distributed generation has now emerged as another long-term growth platform for Pioneer and we expect further market penetration over the coming months,†Mazurek concluded.
Distributed generation represents a new opportunity for Pioneer. In early 2015, Pioneer introduced a new line of automatic transfer switches (ATS), and during 2015, the Company generated initial sales of distributed generation solutions. These ATS solutions combine the stand-by aspect of a typical ATS with grid paralleling capability, enabling the IPP (Independent Power Producer) to export and "peak shave" power to the utility, providing the IPP with additional sources of revenue generation. Pioneer offers grid paralleling solutions for both Low and Medium voltage applications.
The three orders, totaling $3.6 million, represent a significant surge in orders related to distributed generation. The new business includes: A single order in excess of $2 million to supply highly-customized automatic transfer switches to a major integrated energy solution provider, with shipments beginning in the third quarter of 2016 and concluding in the first quarter of 2017, and the majority scheduled for shipment in the fourth quarter of 2016. The agreement represents Pioneer's first large distributed generation order and validates the Company's custom design capabilities. Three additional orders, valued at approximately $1 million in aggregate, for other highly-customized distributed generation solutions.
