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Hara Scores Mother of All Energy Management Deals in Abu Dhabi

One of the largest energy and resource management deals I’ve ever heard about has gone to Valley startup Hara. In Cancun, Mexico, amidst the second week of the U.N.’s climate negotiations, Hara announced it has scored a deal with state-run utility Abu Dhabi Water and Electricity Authority (ADWEA).

ADWEA plans to use Hara’s software-as-a-service to track and manage the energy consumption of the region, and expects to save $3 billion over 10 years, which comes out to a reduction of 4 GW of peak power, or several 500 MW natural gas plants by 2020. Annual total energy savings could be over 12,000 GWh by 2020 with Hara’s software, which is equivalent to the elimination of 10 million tons of CO2.

ADWEA has more than 1.4 million customers, which is close to 40 percent of the United Arab Emirates total population. Hara’s software will be used to track over 200,000 commercial and residential buildings. Abu Dhabi had been growing like gangbusters for several years, and then, like most regions, was hit by the recession in 2009. Nothing says energy efficiency like a downturn.

Despite there being dozens of carbon and energy management software players out there, Hara seems to be doing something right. Its focus on energy and resources (and not carbon), is a good bet in lieu of the lack of a stable global price on carbon and stalled climate negotiations. Customers include Akamai (s akam), Coca-Cola (s KO), and News Corp (s nws), as well as the cities of Palo Alto and San Jose Calif., Las Vegas, and Philadelphia.

Three-year-old Hara is one of the bright spots in Kleiner Perkins cleantech portfolio, and Hara raised at least $20 million from investors including Kleiner, Nth Power, and JAFCO Ventures over the past several years.

Hara’s so-called “Environmental and Energy Management (EEM)” Software-as-a-Service product gives companies and municipalities the ability to itemize and track all of the inputs (water, electricity, chemicals) and outputs (the product, greenhouse gases, wastewater) that make up the business processes. By identifying both the inputs and outputs, Hara’s CEO Amit Chatterjee told me last year, Hara can then suggest how to optimize the overall system, enabling the customer to save substantial money and reduce waste.

There are three types of customers that will most benefit from Hara’s tool: power companies (oil, natural gas, etc.) spending millions on energy, companies with deep supply chains like a Dell (s dell) or a Walmart (s wmt), and public sectors looking to meet and implement mandates.

With a growth in customers, Hara started working with cloud provider OpSource for its database earlier this year and plans to work with a “data integration provider and a data analytics solution.” Chatterjee told me that one day he thinks the carbon software industry will be managing 12 MB per second — the equivalent to 1 million SMS messages.

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Image courtesy of Panoramas.