Servidyne, Inc. (Nasdaq: SERV), an energy efficiency and demand response company, secured an exclusive two-year demand response services contract with San Antonio, Texas-based CPS Energy, the largest municipally-owned electric utility in the United States.
Financial terms were not disclosed.
CPS Energy’s demand response program is part of the utility’s Save for
Tomorrow Energy Plan (STEP), which has a goal to reduce growth in demand
by 771 megawatts (MW), or the equivalent production capacity of a large
electrical generating unit, by 2020.
During the demand response season (June 1 to September 30), each
participating CPS Energy customer will be compensated for modifying
usage of energy-consuming building assets during peak energy events,
when called upon by the utility to temporarily reduce electric
consumption. Josephson said he expects that each year, Servidyne will
enable at least 20 to 25 CPS Energy customers to participate in the
program.
Servidyne will commence work this month by performing initial on-site energy audits at customer facilities to identify and prioritize available demand response 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.
Other major players in the industry include EnerNOC, Inc. (NASDAQ: ENOC), Honeywell (NYSE:HON) and Silver Spring Networks.
Servidyne’s Fifth Fuel Management is designed to provide technology-enabled real-time demand response capabilities to operators of large, complex buildings, like office towers, manufacturing facilities, hospitals, universities and hotels.
CPS Energy serves 707,000 electric customers and 322,000 natural gas customers in and around San Antonio.
Established in 1925, Servidyne, Inc. is headquartered in Atlanta, Georgia.
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