Eguana Technologies Inc. (EGT:TSX.V; EGTYF:OTC) has announced its annual financial results for the fiscal year ending December 31, 2024, revealing a significant strategic pivot towards utility-driven grid infrastructure channels. This shift, away from consumer-driven rooftop solar markets, aims to capitalize on the increasing demand for advanced battery solutions and Distributed Energy Resource Management Systems (DERMS) partnerships essential for transforming conventional power grids into resilient, distributed networks. The company emphasizes that behind-the-meter battery deployments are crucial for enhancing the capacity and reliability of existing grid infrastructure, enabling utilities to manage edge-of-grid generating assets and renewable energy sources more effectively while providing critical backup power to consumers.

Eguana's comprehensive suite of hardware and software solutions, including its Evolve hardware and Cloud and Edge software platforms, is specifically tailored for utility-level power grid management. These solutions offer robust Virtual Power Plant (VPP) capabilities, encompassing critical functions such as demand response, precise voltage and frequency control, reliable backup power, efficient fleet aggregation, spinning reserve, and real-time grid edge visibility with advanced analytics. Justin Holland, Chief Executive Officer of Eguana, stated, "2024 witnessed the continued downturn of consumer-driven rooftop solar markets and catalyzed a strategic acceleration for Eguana towards utility-driven channels, focusing on the power grid transition and a distributed grid. Our technology distinctly excels at the utility level, providing the much-needed capacity and reliability to the existing grid infrastructure."

Throughout 2024, Eguana achieved several strategic milestones reinforcing its new direction. The company successfully integrated its hardware and software solutions with five leading North American DERMS providers. It executed pilot demonstrations for feeder voltage control under high photovoltaic penetration conditions with a western Canadian utility, concurrently delivering an exclusive megawatt feeder peak management project for the same utility. Additionally, Eguana completed demand response testing with both single systems and aggregated fleets in collaboration with a California-based DERMS partner and Community Choice Aggregator, signaling an intent to enter the California demand response market. Further advancements include system integration with Itron Intelliflex smart meter 2.0, marking a pioneering smart battery/smart meter combination, and an invitation to participate in a 4MW feeder support Request for Proposal (RFP) by Ontario's largest Local Distribution Company (LDC). A feeder pilot is also planned with an Alberta-based utility to demonstrate stacked services from residential storage in a competitive electricity market.

Financially, fiscal 2024 presented a mixed picture. Operating costs, excluding amortization and share-based compensation, saw a substantial 51% year-over-year decrease to CA$5.25 million. The company reported a credit loss recovery of CA$1.6 million, a significant improvement from the prior year's CA$10 million provision. However, sales plummeted by 92.3% to CA$751,869, attributed to economic uncertainties and global supply chain reorganization. Gross margin declined to negative 29% due to industry slowdown, heightened price sensitivity in consumer markets, and inventory impairments. Despite the sales downturn, the net loss before tax from continuing operations reduced to CA$15.2 million from CA$32.4 million, primarily driven by the significant reduction in operating expenses. Eguana also strategically closed its German business and liquidated its Australian subsidiary, incurring net losses from discontinued operations of CA$380,000 for the final quarter of 2024.

Eguana is leveraging its VPP technology to transform residential and commercial buildings equipped with smart batteries into active components of the power network. This groundbreaking approach integrates grid-edge smart batteries with software to efficiently manage energy storage and dispatch during peak demand, a process designed to be seamless for the consumer. A notable example is the Canadian electric utility BC Hydro's "Peak Saver" project, which utilizes Eguana's Evolve LFP 14kWh/5kW battery storage systems to convert homes into VPPs. This initiative aims to deliver uninterrupted power supply and enhance grid flexibility, allowing batteries to provide backup during outages and supply energy during peak demand, all managed remotely by BC Hydro for optimal performance.