SMART Metering Systems has secured a contract to fund and provide services for the installation of at least 400,000 smart meters in homes.
The Aim-listed business, which installs and manages smart meters on behalf of energy companies, hailed the agreement “with a large energy supplier" for the significant services.
The new domestic smart meter contract win increases SMS’s contracted order pipeline to 2.75 million meters, against 2.35 million in June.
The grid-scale battery project will add to the Glasgow group’s existing £84.2 million long-term indexed-linked annualised recurring revenues (ILARR), revenue generated from meter rental and data contracts, as at June, 30.
After SMS announced in its recent trading update that from its 470MW grid-scale battery pipeline, it had acquired 190MW with 280MW remaining under exclusivity, it has now secured a further 50MW project which was previously under exclusivity, increasing the secured pipeline to 240MW.
READ MORE: Scottish energy giant to harness waste heat from transformers for homes
Alan Foy, SMS chief executive, said the win, which follows two announced earlier this year, will “further expand our long-term index linked recurring revenues and leverages on the scalability of our well established end-to-end integrated model”.
“Grid-scale batteries are critical to balancing the increasing volume of intermittent renewable generation and to further accelerate the adoption of renewables. Our long-standing experience in the design and delivery of large-scale electrical infrastructure projects and asset management positions us extremely well for this long-term attractive asset class.”
Of the secured 240MW pipeline, 90MW is under construction and continues to be built out in line with cost and construction programme expectations, 100MW will begin construction during Q4 2021, and 50MW will begin construction during Q4 2022.
SMS shares closed at 925p, down -1.18%, or 11p.
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