Wednesday, March 23, 2011

EnerNOC, California utility team on energy efficiency

By Kyle Alspach

EnerNOC Inc. (Nasdaq:ENOC) said Wednesday it has scored a contract to provide energy efficiency services for a major California utility.

The Boston-based firm is best known for its market-leading demand response service but has been seeking to diversify into efficiency services and other areas.

EnerNOC said Wednesday it will deploy the efficiency services at commercial and institutional customers of utility Southern California Edison through the end of 2012. Financial terms for the contract were not released.

EnerNOC’s efficiency services range from traditional commissioning — a basic energy audit and assistance with lowering energy use — to persistent commissioning, which adds energy-monitoring technology and results in continual tuning of a building, CEO Tim Healy said previously.

EnerNOC has reported that revenue from its energy efficiency, carbon tracking and other non-core services was $15.5 million last year, compared to $6.8 million in 2009.

The company has pointed to energy efficiency as critical to the company’s future growth, citing the size of the efficiency market. Healy said recently that while there’s “tons of work that we need to do” on the efficiency business, the $10 billion market is three times that of demand response.

Overall, demand response still made up 94 percent of the company’s revenue in 2010 — $264.6 million — with the efficiency and other services contributing the rest. EnerNOC projects that 20 percent of its revenue will come from outside of demand response by 2013.