Doosan Heavy Industries & Construction Co., a leading power equipment maker in South Korea, took over United States-based 1Energy Systems Inc., which possesses cutting-edge software technology for energy storage systems (ESS). Accordingly, the company has gained an important foothold to target the global ESS market showing the rapid growth.
The company announced that it acquired 1Energy Systems and renamed it to Doosan GridTech on July 12. 1Energy Systems that was established in 2011 by former engineers of Microsoft and Tesla provides software solution related to energy sources.
1Energy Systems has steadily made profits by supplying its self-developed ESS control system software to a number of power grid companies across North America. Doosan Heavy said, “With the latest takeover, the company has secured the industry leading control software technology in the ESS sector. Accordingly, it is now capable of carrying out all processes from designing, installing to operating ESS.”
Not only the domestic but also the global ESS markets are expanding. As the government is planning to raise the new renewable energy supply duty rate to 7 percent, it has recently announced to invest 4.5 trillion won (US$3.92 billion) in the ESS sector by 2020.
Doosan Heavy Industries & Construction vice chairman Jung Ji-taek said, “The global market for ESS is expected to grow by more than 20 percent a year to be worth 12 trillion won (US$10.45 billion) by 2025. With the latest acquisition, the company is now in an advantageous position for the market. We will target first the domestic and North American markets, which are expected to show the high growth, and expand to the Southeast Asian and European markets in the medium to longer term.”
Doosan Heavy was selected as the main business partner for the state-initiated smart grid project last September, pushing into the ESS and small power grid markets for the first time.