Dive Brief:
- Continuing its push into international markets, EnerNOC bought Entelios, a German demand response company, and Activation Energy, an Irish demand response firm.
- Germany is an 80 GW market and Ireland is 5 GW (PJM is about 170 GW), but there is little demand response in the two European countries, giving EnerNOC a chance to grow, company officials told analysts during an earnings conference call.
- Last year, 81% of Boston-based EnerNOC's revenue came from its U.S. operations, down from 88% in 2012.
Dive Insight:
EnerNOC is growing overseas. “The international demand response market is significantly larger than the U.S. market and significantly less penetrated,” Tim Healy, EnerNOC president and CEO, said. “To capitalize on this opportunity, we have over the last two years invested aggressively in markets like Australia, New Zealand and Canada. That model has worked very well and we've grown our international revenue from less than $1 million in 2010 to nearly $74 million in 2013.”
Meanwhile, EnerNOC is focused on developing its energy intelligence software (EIS) platform. “While we continue to be keen and focused on demand response, we see demand response as the killer application within this broader EIS context," Healy said. "We're steadily evolving our focus on this larger market opportunity and making key investments.”
Some of EnerNOC's key metrics are unchanged from a year ago, the Boston-based company reported. The company has 24,000 to 27,000 MW under management and about 30% to 35% of the load is curtailable. It has about 5,800 commercial and industrial customers participating in demand response, down slightly from a year ago.