Carlyle Group, Schneider Electric creating JV combining infrastructure, energy

Schneider Electric and global investment giant The Carlyle Group are enhancing their partnership to focus on large infrastructure projects combining automation, energy management and, in some cases, microgrids.

The partnership will include a new joint venture called AlphaStruxure, combining distributed energy and microgrid networks within infrastructure projects. Juan Macias, formerly senior vice president of energy automation and digital energy solutions at Schneider Electric, will be CEO of AlphaStruxure.

The key is to modernize critical infrastructure that was built decades ago. Delayed investment and rising maintenance costs also are limiting the growth potential economically, experts say.

“People everywhere rely daily on infrastructure that does not meet the demands of a 21st century economy,” said Andrew Marino, managing director and co-head of Washington D.C.-based Carlyle’s global infrastructure team. “AlphaStruxure delivers a powerful combination of cutting-edge automation and energy management technology and expertise, and financing solutions to turn this important global issue on its head.

“Together, we will identify new investment opportunities, modernize core infrastructure to keep people and goods moving, and open new value and revenue streams for both public and private entities,” Marino added. “We look forward to a prominent role in shaping the future of infrastructure around the world.”

For example, The Carlyle Group has several previously announced large infrastructure projects which are expected to incorporate Schneider’s technology solutions. The redevelopment of JFK Airports Terminal One will use Schneider’s solutions to enhance energy reliability through a new microgrid, reduce energy consumption by about 30 percent and meet the airport’s goal of 100-percent renewable energy within the next decade.

“We are just scratching the surface of the investment needed to create more modern airports, water systems, transportation systems and others that will support future demand and connect society,” said Jean-Pascal Tricoire, Chairman and CEO, Schneider Electric. “While infrastructure is a global issue, it can only be addressed at a local level. We believe our partnership leverages the best of our organizations’ abilities: Carlyle’s ability to get deals done with local stakeholders support and our global technology expertise and footprint to optimize projects that will provide immediate, tangible impact for economies globally.”

The Carlyle Group and Schneider Electric have partnered on energy projects for several years. In 2017, the two companies connected with Carlyle-funded Dynamic Energy Networks to help the latter develop its “energy as a service” model.

Dynamic Energy Networks will be folded into the new AlphaStruxure JV, a source said.

This model is focused on financing and building microgrids and distributed energy infrastructure for customers up front, taking that financial burden away. The customers then subscribe to long-term purchase power contracts.

The Carlyle Group has more than $200 billion worth of assets under management and across many sectors. French-based Schneider has operations in more than 100 countries.


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