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Generac (GNRC) Collaborates With RWE for Energy Solutions

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Generac Holdings’ (GNRC - Free Report) subsidiary Generac Grid announced a partnership with RWE to provide grid-balancing solutions that support a reliable grid.

RWE has supplied electricity for more than 120 years. The company is focusing on the transition to eco-friendly energy sources such as wind farms, solar power and hydrogen technology.

The collaboration was expanded after Generac delivered an automatic and fast-power control virtual power plant solution in Germany over the past six months. The companies plan to launch two market products this year.

Since December 2021, Generac Grid’s Concerto distributed energy resource control platform has enabled automatic Frequency Restoration Reserve (aFRR) capacity, supporting the balance of power within the Amprion Transmission System Operator Control Area.

RWE's D-Central program enables customers to integrate their distributed energy resources into RWE's virtual power plant. RWE will now leverage Concerto and DER flexibility to generate additional revenues.

When an aFRR market bid is accepted, RWE uses Concerto's real-time transactive optimization engine to automatically deliver capacity and an ideal combination of devices in its fleet of distributed assets.

RWE is using Concerto to bid in the German interruptible load market in addition to the aFRR solution. RWE can add value to its fleet of distributed energy resources with this solution.

Previously, Generac collaborated with PosiGen to provide clean energy for low to medium-income residents. The tie-up enabled the companies to supply residents with cutting-edge battery backup and load-management systems, as well as provide power back to the electrical grid. Using Concerto, the partnership planned to increase grid stability and lower the reliance on fossil fuels.

Generac manufactures power generation equipment, energy storage systems and other power products, including portable, residential, commercial and industrial generators.

In addition, the company manufactures light towers (which provide temporary lighting solutions for various end markets), and commercial and industrial mobile heaters and pumps used in the oil & gas, construction and other industrial markets.

Shares of GNRC have declined 17.8% compared with the industry’s fall of 30.9% in the past year.

Zacks Rank and Stock to Consider

Generac currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader technology space are InterDigital (IDCC - Free Report) , Vishay Intertechnology (VSH - Free Report) and Avnet (AVT - Free Report) . InterDigital, Avnet and Vishay Intertechnology currently sport a Zacks Ranks #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for InterDigital’s 2022 earnings is pegged at $3.28 per share, increasing 43.9% in the past 60 days. The long-term earnings growth rate is anticipated to be 15%.

InterDigital’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 141.13%. Shares of IDCC have declined 20.9% in the past year.

The Zacks Consensus Estimate for Vishay Intertechnology’s 2022 earnings is pegged at $2.68 per share, rising 10.3% in the past 60 days. The long-term earnings growth rate is anticipated to be 22.7%.

Vishay Intertechnology’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 4.96%. Shares of VSH have declined 13.4% in the past year.

The Zacks Consensus Estimate for Avnet’s fiscal 2022 earnings is pegged at $6.83 per share, rising 20.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 37.2%.

Avnet’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 21.22%. Shares of Avnet have grown 11.3% in the past year.

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