Nextpower scales utility storage capabilities with $365 million buyout of Prevalon Energy

Nextpower has agreed to acquire energy storage specialist Prevalon Energy for up to $365 million in a cash-and-stock transaction. The acquisition expands Nextpower’s footprint into the battery energy storage systems (BESS) and intelligent grid controls market, driving an upward revision of its fiscal year 2027 financial outlook.

Utility-scale solar and power technology provider Nextpower has signed a definitive agreement to acquire Prevalon Energy, a U.S.-based joint venture owned by Mitsubishi Power Americas and EES. The total consideration for the transaction is up to $365 million, consisting of cash and stock, excluding any cash that will be acquired as part of the deal.

Prevalon, a U.S.-based joint venture between Mitsubishi Power Americas and EES, specializes in advanced battery energy storage systems (BESS) and proprietary automation software.

According to official disclosures, the transaction is subject to customary regulatory and antitrust clearances. Upon successful completion, the deal is projected to elevate Nextpower’s fiscal year 2027 revenue guidance to a range of $4.0 billion to $4.4 billion, up from previous estimates.

This transaction marks a significant structural pivot for Nextpower, moving it beyond solar infrastructure into a fully integrated energy technology platform. By incorporating Prevalon's modular hardware and 'insightOS' control software, Nextpower addresses a massive addressable market.

The company estimates that the global BESS sector outside China will reach $35 billion by 2030, with the U.S. accounting for $15 billion of that demand. Integrating BESS technology is critical for stabilizing grids heavily reliant on intermittent renewable energy. Furthermore, Prevalon’s specialized systems such as its Hybrid Power Stabilizer are engineered to manage the intensive, variable power draw of artificial intelligence data centers, offering solutions for workload smoothing and contingency management.

For institutional investors and utilities, this acquisition positions Nextpower as a comprehensive, single-source partner for combined generation, conversion, and storage assets. The move directly impacts the power generation and data infrastructure industries by streamlining supply chains for hyperscale data center operators and independent power producers. Strategically, the integration allows Nextpower to leverage its existing utility relationships to deploy high-margin storage software and long-term service agreements, strengthening its competitive edge against standalone hardware manufacturers.