Ameresco, Inc. (NYSE:AMRC) Q4 2022 Earnings Call Transcript

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Eric Stine: Got it. That is great color. And then I guess last one for me. Just on the SoCal Edison project, I don’t know if you’re willing to discuss how much of that project is left? But I guess more interested in you mentioned that as a result of that, you’ve got a growing number of projects in your pipeline. So maybe some color around those projects, maybe not as big as SoCal Edison, but big nonetheless.

Doran Hole: Let me — I’ll start by just saying that on the proposal front, they’re definitely coming in large and small. As you know, it’s a competitive market. We feel like we’re very, very well placed to win a good number of those projects. There is a mix of some of these projects that are going to be assets on our balance sheet as well as straight construction contracts like we did for SoCal Ed for other utilities or other types of asset owners. And from a sizing perspective, maybe we don’t see any single one that’s quite the size of SoCal Ed, but when you add them all up together, they’re certainly in excess of SoCal Ed when you look at the proposal activity. So I think there’s more to come there. We will talk about them as they get into the awarded backlog, but I think we are definitely seeing a move toward being pulled into discussions about some of those design build projects that we’re really, really excited about.

For SCE itself, we probably 90%-plus — 95% complete by the end of 2022. So from a practical perspective, focusing on grid integration and getting to substantial completion, as we said, before the summer.

Eric Stine: Okay. Thank you.

Operator: Thank you. Again one moment for our next question. Our next question will come from Christopher Souther of B. Riley. Your line is open.

Christopher Souther: Hey, guys. Thanks for taking my questions here. Maybe just a follow-up on the Enerqos. Do they have projects on the balance sheet that you’re acquiring? Or is this more of a project business? I’m curious if that kind of evolves over time where you’d be owning assets over there as well. And then can you talk through just from a market-by-market perspective, what other markets are ones were acquisition to kind of gain foothold is most helpful? Thanks.

George Sakellaris: Yes. We do not have any assets on their balance sheet right now. But basically, let’s say, a solar plant and some of the multi customers that they have, they’ve got them. And then they have a conduit that buys those projects. Also they look on the balance sheet as a design build projects. And they do very little O&M. That’s why we think that there’s tremendous potential for us to expand the O&M business. And at the end of the day, we might take some of the assets on our balance sheet as well. And I think with us bringing some more additional financing and management and marketing capabilities, I see we can accelerate the growth of this particular business. And some of the other companies that we are looking in Europe, they are similar, similar companies because in Europe, what has happened with the energy price been where they are, especially some of these distributed generation for the commercial industrial customers.

And now it’s beginning the institutional accounts of the governments and the cities and towns, the market is picking up. And I think, for us, we developed a good management team in this particular company. I think we can grow it.

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