Stay on Top of Enterprise Technology Trends
Get updates impacting your industry from our GigaOm Research Community
The rebranding of the demand response players continues. EnerNOC (s ENOC) this morning announced a new line of business called EfficiencySMART, which provides energy monitoring and controls inside buildings, enterprise software, and a services program to help customers make sense of it all.
EnerNOC’s move comes as part of a general shift amongst demand response aggregators — companies that help utilities and their customers reduce power use during peak demand times for outsized financial rewards — into broader fields of energy efficiency and management. Rival aggregator Comverge (s COMV) announced a similar refocusing of its business around providing broader energy management services and technology last month.
But EnerNOC has an even broader customer base to convert to its new offerings. It’s the market leader in U.S. demand response, with some 5,100 megawatts under management at 8,500 sites across the country. Gregg Dixon, senior vice president of marketing, estimates that the U.S. demand response market is worth about $5.2 billion in potential revenues, with only about $1 billion of that captured by all the players to date.
But energy efficiency could be a $37 billion market in the U.S., he said — about six times as big as demand response. Once EnerNOC has its foot in the door with the revenue offering that demand response provides, why not add on energy efficiency?
The same logic applies to EnerNOC’s energy procurement business, which provides a service similar to that energy brokers like Constellation New Energy provide — and interestingly enough, Constellation bought up demand response provider CPower earlier this year.
EnerNOC has bought some eight companies over the past few years to provide its breadth in services, and while they’re still a much smaller part of the company’s revenues than its core demand response business, they’re also the fastest growing, Dixon told me.
For example, building energy commissioning is something it does for hundreds of clients as part of its basic capabilities of turning power on and off in buildings, he said. The EfficiencySMART Commissioning product is also eligible for incentives from utilities including Pacific Gas & Electric, Southern California Edison, National Grid and Commonwealth Edison.
EnerNOCs enterprise-level management, on the other hand, is based on a $10 million project it did to tie Massachusetts state buildings into an integrated system, he said. How it might compare to what SAP (s SAP) and CA (s CA) are doing on carbon accounting, or IBM (s IBM) and Schneider Electric are working on in linking building controls and enterprise resource planning, remains to be seen.
For more research on demand response and the smart grid check out GigaOM Pro (subscription required):
- Demand Response as the Back Door Smart Grid?
- Moving Into Substation Networking, Cisco Seizes Smart Grid’s Low-Hanging Fruit
- Smart algorithms, the future of the energy industry
Image courtesy of UKinUSA via Creative Commons license.