If You Can't Join Them, Beat Them! Orbital Energy Group May Be Among The Power Companies Pushing For The Creation Of New Infrastructure

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According to the U.S. Department of Energy, (DOE), approximately 4 trillion kilowatt-hours (kWh) of electric energy is consumed annually in the United States. The U.S. Energy Information Administration, (EIA),  projects that U.S. energy consumption will grow through 2050, with the increase in population and economic growth, greatly impacting the electric power transmission industry.

Electric power transmission is the bulk movement of electrical energy from a generating site, such as a power plant, to an electrical substation where it is applied to perform useful work for consumers. This is achieved through an intricate grid of transmission lines, substations, distribution lines and transformers.

While today’s electric power systems have been designed for efficiency and reliability, and often to meet customer needs at a minimum cost, the grid of the future may need to maintain these characteristics while also meeting a number of new requirements.

Federal policies related to clean energy and carbon emission reductions are impacting the bulk electricity generation mix, requiring building new transmission equipment and upgrading existing systems. 

Electric power transmission systems must be enabled to support the integration of various clean and distributed energy technologies and meet the higher-quality power demands of modern digital devices.

Orbital Energy Group Inc. OEG, an emerging infrastructure service provider to the electric power industry says it is gearing up to meet the challenge.

OEG: Powering Toward The Future?

Orbital Energy’s electric power segment provides engineering, design, construction, maintenance, and emergency restoration services to electric utility customers. Its subsidiaries, with more than 50 years of operational experience, are Houston based Front Line Power, Inc., and Dallas-based Orbital Power Inc. These subsidiaries provide infrastructure services for the construction and maintenance of high-voltage transmission, substation, distribution and storm response.

A third subsidiary, Eclipse Foundation Group,  reportedly specializes in providing drilled pier foundation services for transmission, substation,  industrial, communication customers, as well as emergency restoration services. 

Eclipse is recognized for performing services in adverse conditions, including water, marsh and rock terrain and utilizes hydraulic cranes for setting rebar cages, anchor bolt cages and driving caissons with vibratory hammers. Eclipse also uses amphibious equipment to construct drilled shafts and vibratory caissons in marshland and deeper waters.

Market Drivers Of The Energy Sector

Key market drivers suggest that capital spending will be robust in the energy sector for years to come.

According to the DOE, the United States has an aging electric transmission infrastructure that is losing its ability to accommodate today’s needs and needs an overhaul. 

In the future, the grid will likely need to be flexible and smart to accommodate the change in energy mix with the focus shifting from fossil fuels to sustainable renewable energy sources like solar and wind, and top U.S. power companies, including Pacific Gas and Electric Corp. PCG and Duke Energy Corp. (NYSE: DUK), are gearing up to meet these needs.

Orbital says it’s also positioned to capitalize on attractive market trends.

The company reports that a near-term top priority this year is to acquire a T&D platform to meet burgeoning energy needs and expects to see margin improvements, meaningful revenue growth and cash-flow improvement into 2022 because of the efficiency gains it achieved during the third quarter.

OEG’s electric power segment subsidiaries, Front Line Power, Orbital Power, and Eclipse Foundations, have also set a long-term target to account for 40% to 60% of consolidated revenue in an attempt to provide certainty of recurring revenue over a multi-year period. 

To learn more about Orbital Energy Group visit https://www.orbitalenergygroup.com/

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.