Goldman Sachs and Cleanhill Partners have acquired a majority stake in EPC Power Corp, a North American supplier of utility-scale smart inverters to the energy storage industry.
The strategic investment, along with a comprehensive recapitalisation, positions EPC Power to “expand and deliver against rapid growth in the renewable energy storage markets while helping facilitate the US economy’s clean energy transition”.
The transaction closely follows the signing into law of the Inflation Reduction Act of 2022, which among other provisions extends a first-ever tax credit to stand-alone energy storage.
This creates a “significant financial incentive” for adopting EPC Power’s inverters and other technologies, the manufacturer of power controls equipment stated.
EPC Power said it is the only US-based, end-to-end power conversion solution provider, making its technology well-suited for grid-scale applications that require added layers of security.
“EPC Power is extremely proud of the strong reputation and track record we’ve built by focusing on product innovation and forging deep relationships with our customers,” said Devin Dilley, co-founder and chief executive officer of EPC Power Corp.
“As the world becomes more reliant on renewable energy, inverters need to continue to get smarter.
“Goldman Sachs and Cleanhill Partners support this vision and are committed to investing in EPC Power and our people to capitalise on this exciting market opportunity and to positively impact the US energy transition.”
Rakesh Wilson and Ash Upadhyaya, managing partners at Cleanhill Partners, added: “In an exploding market of cleantech innovators, EPC Power stands out for its industry-leading technology, which directly supports the renewable energy transition while preserving grid reliability and performance.”
Cleanhill Partners first invested in EPC Power in 2021 when it underwrote a credit facility to support its growth.
“As prior investors in EPC Power, we have every confidence that the company will meet its ambitious and environmentally critical objectives and we are excited to partner with Goldman Sachs for the next stage of EPC Power’s growth,” they added.
Alexander Mass, managing director of Goldman Sachs Asset Management, said: “As the only scaled supplier of smart inverters that are designed, engineered and 100% manufactured in the US, EPC Power is a natural continuation of our thematic investment activity in this space, in partnership with Cleanhill Partners and EPC management.”