Ever the entrepreneur, Tim Healy of Boston-based Enernoc has joined forces with PwC to convince the corporate suite that energy management is a financial issue that deserves high-level thinking — not something to be relegated to the technical folks a few floors down.
Enernoc is a demand response company. In the past, the company has gotten paid if customers save money. Now, though, it is making money more and more money by selling its software. It has doubled from 10 percent in 2014 to 20 percent in 2016, the Boston Globe reports. As such, it is now making a direct pitch to companies.
Demand response, of course, is different from energy efficiency – whose technologies are designed so that buildings or appliances consume less electricity when they operate. Demand response, by contrast, provides commercial and industrial customers insight into how they use energy. Businesses, for example, get a head’s up if prices are about to spike so they can readjust their consumption schedules.
That technology allows those customers to run specific applications at times of the day that are more favorable under the applicable utility rate structure. The good news — whether it be for demand response or energy efficiency — is that utilities don’t have to buy power on potentially expensive spot markets or spend billions building new power plants.
“We make markets more efficient,” says Tim Healy, chief executive of Boston-based Enernoc that is a party to the case, in an earlier interview with this writer. “We have saved ratepayers $11.8 billion in the PJM Interconnection, alone” in reduced capacity cost in 2013-2014.
The demand response technology, he adds, is becoming firmly rooted in both wholesale and retail electricity markets, and it’s expanding year-over-year.