ConnectM Enters Energy Race with AI-Powered Hi-E™ Battery System

NEW YORK, NY – December 29, 2025 – ConnectM Technology Solutions, Inc. (OTC: CNTM) has made a strategic entry into the fiercely competitive energy sector, announcing the launch of its Hi-E™ line of energy storage systems. Developed by its artificial intelligence subsidiary, Keen Labs, the new system is positioned to challenge established players by offering a smart, scalable battery solution designed not just for backup power, but for active participation in the rapidly evolving electrical grid through Virtual Power Plant (VPP) programs.

The launch marks a significant move for ConnectM, as it aims to transform passive energy consumers into active participants in the modern energy economy. By integrating advanced battery hardware with a sophisticated energy intelligence platform, the company is betting that the future of home energy lies in smart, interconnected systems that enhance grid stability while offering financial benefits to homeowners and businesses.

The Race for a Multi-Billion Dollar Market

ConnectM is entering a market characterized by explosive growth and immense potential. While the company's announcement points to a distributed energy storage market valued at over $100 billion, industry analysis suggests this figure represents the broader global battery energy storage system (BESS) market. The more specific segment for distributed energy storage systems (DESS)—like the residential and light commercial systems Keen Labs is targeting—was valued at approximately $5.9 billion in 2024 but is projected to grow at a compound annual growth rate (CAGR) of nearly 10%, potentially exceeding $15 billion by 2034.

This rapid expansion is fueled by several converging factors. The increasing integration of intermittent renewable energy sources, such as solar and wind, necessitates storage solutions to ensure a consistent power supply. Simultaneously, aging grid infrastructure is under strain from rising electricity demand and the impacts of extreme weather, driving the need for greater flexibility and resilience. Consumers, faced with the threat of outages and volatile energy prices, are increasingly seeking energy independence and cost control.

Furthermore, the declining cost of lithium-ion battery technology has made these systems more accessible than ever. Specifically, Lithium Iron Phosphate (LiFePO₄) chemistry, which the Hi-E™ line utilizes, has become the industry standard for stationary storage due to its enhanced safety, longer lifespan of over 5,000 charge cycles, and high thermal stability compared to other lithium-ion variants.

Navigating a Crowded Field

ConnectM and its Keen Labs subsidiary are not entering an empty arena. The residential and light commercial energy storage space is populated by major brands, including Tesla with its iconic Powerwall, Enphase Energy with its IQ Battery system, and Generac's PWRcell. These companies have already established significant market share and brand recognition.

To differentiate itself, ConnectM is emphasizing modularity, intelligence, and grid-readiness. The Hi-E™ system is offered in scalable 2 kWh to 5 kWh modules, allowing customers to build a system tailored to their specific energy needs and budget, from basic backup to whole-home power. This flexibility is a key selling point for a diverse customer base with varying consumption patterns and financial capabilities.

However, the system's most critical feature may be its native integration with Virtual Power Plant platforms. By designing the Hi-E™ to be “VPP-ready” from the outset, ConnectM is tapping into one of the most transformative trends in the energy industry.

The Power of the Virtual Power Plant

A Virtual Power Plant is a network of decentralized, small-scale power generating and storage units—such as rooftop solar panels and home batteries—that are aggregated and controlled by a central software platform to operate like a single, large power plant. This allows them to provide essential services to the main electrical grid.

The adoption of VPPs is being accelerated by landmark regulations. In the United States, the Federal Energy Regulatory Commission's (FERC) Order 2222 is a game-changer. Finalized in 2020, the order mandates that regional grid operators open their wholesale energy markets to participation from distributed energy resources (DERs), including those aggregated into VPPs. This ruling effectively unlocks new revenue streams for owners of systems like the Hi-E™.

For the consumer, this means their battery is no longer just a passive insurance policy against blackouts. It becomes an active asset that can be dispatched by a VPP operator to help balance supply and demand on the grid. In return for providing these services, such as frequency regulation or reducing demand during peak hours, homeowners can receive payments, effectively lowering their electricity bills and accelerating the return on their investment.

Under the Hood: The 'Energy Intelligent Network™'

At the core of ConnectM's offering is the technology developed by Keen Labs. The company highlights its “proprietary power electronics architecture” and the “Energy Intelligent Network™,” a sophisticated software platform that acts as the brain of the Hi-E™ system. This integration of hardware and AI-driven software is what elevates the system beyond simple energy storage.

The Energy Intelligent Network™ leverages real-time telemetry and data analytics to optimize performance. It can monitor a home's energy consumption patterns, track generation from rooftop solar panels, and analyze utility time-of-use pricing. Using predictive algorithms, the system can intelligently decide when to store cheap energy from solar or the grid during off-peak hours and when to discharge it to power the home or sell it back to the grid for a profit during peak hours.

This level of intelligent automation promises not only to maximize cost savings but also to enhance the system's contribution to grid stability. While detailed technical specifications of the proprietary hardware and software have not yet been made public, the focus on an integrated, AI-powered ecosystem signals ConnectM's strategy: to compete not just on battery capacity, but on intelligence and optimization.

As the transition to a cleaner, more decentralized energy future accelerates, the line between energy consumer and producer is blurring. By launching a system that is both modular and deeply integrated with the grid's emerging digital infrastructure, ConnectM is making a calculated play for a pivotal role in this new energy landscape. As utilities and consumers alike seek smarter, more resilient energy solutions, ConnectM is positioning its Hi-E™ system not merely as a battery, but as a foundational component of the decentralized power grid of tomorrow.