Energy management firm EnerNOC, Inc. (NASDAQ: ENOC) has entered into a multi-year contract to provide Tucson Electric Power (TEP) with up to 40 megawatts (MW) of demand response capacity beginning later.
Following regulatory approval, EnerNOC will deploy its DemandSMART system to manage a network of commercial, institutional, and industrial facilities in TEP’s service territory. When dispatched by TEP, EnerNOC will activate its network of customers to reduce electricity usage and will manage each site’s performance in real time from its Network Operations Center (NOC). In return, customers will receive payments from EnerNOC, as well as access to DemandSMART, which provides real-time energy data and reporting functionality to maximize demand response event performance and identify additional energy savings opportunities.
The demand response (DR) industry is expected to begin a period of dramatic growth in 2013, according to a recent Pike Research report, which forecasts market growth from $1.4 billion in 2010 to $8.2 billion in 2020.
“Demand response programs can help us maintain reliable service
during periods of peak energy demand and save our customers money by
avoiding the costs of adding generation resources to serve that peak
demand,” said David Hutchens, Vice President of Energy Efficiency and
Resource
Planning for TEP and its parent company, UniSource Energy Corporation
(NYSE: UNS).
EnerNOC recently secured a major contract with its home state of Massachusetts to provide energy management at state-owned facilities.
EnerNOC also provides demand response and energy efficiency applications in wholesale markets such as New York, PJM Interconnection, and Texas, as well as under bilateral agreements with utilities such as Idaho Power, Tennessee Valley Authority, Southern California Edison, Pacific Gas & Electric, and Xcel Energy.
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