International oil and gas major TOTAL S.A. (TOT) recently announced plans to boost its presence in the energy efficiency space by investing in Stem. Stem is a provider of energy optimization solutions for both commercial and industrial consumers as well as grid operators.
Total Energy Ventures ("TEV") – a TOTAL S.A. unit – is investing in Stem to alter the way energy is distributed and pave the way for a greater and more flexible use of renewable energies.
Since fossil fuel resources are both limited and polluting, there is a pressing need to use energy sensibly. Energy optimization technologies are thus coveted to meet rising power demand at affordable costs. Alternate energy and renewable power sources are also a viable answer to our energy needs going forward.
TOTAL on its part has been investing in energy storage and smart grids. Investment in Stem is the fifth of its kind. TOTAL has already ventured into the renewable energy space by acquiring the solar module maker SunPower Corporation (SPWR).
TOTAL expects its investment in Stem to enable some of its facilities and SunPower customers to optimize energy consumption.
Energy efficiency allows customers to cut on electric demand and save on energy related costs. The U.S. Environmental Protection Agency projects that energy efficiency if implemented properly could help reduce the nation’s total energy demand by 20% by 2025. The appropriate usage of energy not only lowers energy costs but also cuts down on environmentally harmful emissions.
TOTAL S.A. (TOT) currently has a Zacks Rank #5 (Strong Sell). The crash in global oil prices will definitely hurt the profitability of this global oil and gas major. It will also not spare the likes of Chevron Corporation (CVX) and Exxon Mobil Corporation (XOM).
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