EnerNOC: [NASDAQ:ENOC]: Changing the Way the World Uses Energy
![EnerNOC: [NASDAQ:ENOC]](/cioimages/kvh6.jpg "EnerNOC: [NASDAQ:ENOC]")
Energy accounts for a significant Opex component for enterprises. According to the U.S. Energy Information Administration, the commercial sector, which includes buildings, office spaces, and street lighting, consumed about 150 billion kWh for lighting in 2016. With government regulations becoming stringent and the increasing push to reduce carbon footprint through optimized use of energy, a need has arisen for enterprises to be accountable for their energy consumption. While organizations do gather energy data from their systems, obtaining actionable insights from the gathered data is cumbersome. Ushering a new era in visualizing energy consumption is EnerNOC [NASDAQ:ENOC]—a stalwart of energy management solutions that is now a part of the Enel Group—through a single platform that analyzes data from multiple sources to identify areas that could be optimized to reduce power consumption. In order to help enterprises strike a balance between their business objectives, compliance with statutory requirements, and investor demands, EnerNOC’s solution portfolio targets three main areas: energy intelligence, demand response, and energy procurement.
Driving Transparency into Energy Data
EnerNOC’s modus operandi involves establishing a centralized, cloud-based information platform that collates energy data from multiple systems called the Energy Intelligence Software (EIS) platform, to obtain actionable insights. EnerNOC’s EIS allows centralized contract management for both commercial enterprises and utility companies and continuously scans the market to display opportunities for procurement of resources, which streamlines purchasing. The platform automates utility bill payment, which may even include rectifying the errors and discrepancies in billing.
Facility analysis, where the functioning of each module is analyzed to check for inefficiency and optimize the performance for business sustainability, is another crucial function of the EIS platform. Robust tracking features to spur collaboration between various teams within a client’s organization constitute a hallmark of the EIS platform that allows performance to be matched against preset goals, revealing areas for improvement.
Rewarding Demand Response
EnerNOC provides state-of-the-art demand response (DR) services by connecting clients to numerous markets and helping them monetize any reduction in energy consumption during peak demand periods. The company assists clients in developing customized energy reduction plans to ensure the inflow of payments from utility companies to businesses, to decrease the stress on power grids. EnerNOC ensures access to a bigger DR market through a dedicated dashboard, which tracks all the active registrations, contact details, and the company’s DR participation and performance.
On the other side of the business, EnerNOC empowers utility companies with behavioral demand management software that leverages data science to capture the varying energy use of enterprises.
Driving Transparency into Energy Data
EnerNOC’s modus operandi involves establishing a centralized, cloud-based information platform that collates energy data from multiple systems called the Energy Intelligence Software (EIS) platform, to obtain actionable insights. EnerNOC’s EIS allows centralized contract management for both commercial enterprises and utility companies and continuously scans the market to display opportunities for procurement of resources, which streamlines purchasing. The platform automates utility bill payment, which may even include rectifying the errors and discrepancies in billing.
Facility analysis, where the functioning of each module is analyzed to check for inefficiency and optimize the performance for business sustainability, is another crucial function of the EIS platform. Robust tracking features to spur collaboration between various teams within a client’s organization constitute a hallmark of the EIS platform that allows performance to be matched against preset goals, revealing areas for improvement.
Rewarding Demand Response
EnerNOC provides state-of-the-art demand response (DR) services by connecting clients to numerous markets and helping them monetize any reduction in energy consumption during peak demand periods. The company assists clients in developing customized energy reduction plans to ensure the inflow of payments from utility companies to businesses, to decrease the stress on power grids. EnerNOC ensures access to a bigger DR market through a dedicated dashboard, which tracks all the active registrations, contact details, and the company’s DR participation and performance.
On the other side of the business, EnerNOC empowers utility companies with behavioral demand management software that leverages data science to capture the varying energy use of enterprises.
EnerNOC’s EIS allows centralized contract management for both commercial enterprises and utility companies
Utility firms are equipped with real-time features to monitor client demands and the DR status, so as to initiate the appropriate course of action to serve consumer interests.
Streamlining Energy Procurement
EnerNOC ensures cost-effective energy procurement along with countering all the budget risks, which essentially streamlines the bidding process and maximizes transparency. EnerNOC’s energy procurement solution features a reverse auction platform that increases the number of suppliers for a given business at the best price along with providing the flexibility to choose between providers. The reverse auction technology simplifies auditing for utilities through live feedback to bidders that provides real-time visibility into the existing capacity, quickly and cost-effectively.
EnerNOC’s ISO-compliant energy management solutions come with a host of services that provide ultimate value to clients. Not only does EnerNOC integrate its energy intelligence solutions with a client’s ecosystem but also enables customized reporting features. The company provides an entire library of resources in the form of EnerNOC University to help clients derive maximum value from energy intelligence. Training programs tailored to suit clients’ niche requirements along with assistance to prepare blueprints and roadmaps to optimize energy consumption are some of the supplementary services offered by EnerNOC.
Trail of Success
EnerNOC’s solutions proved valuable for Beacon Capital Partners, LLC—a real estate investment organization focused on office buildings in urban areas—that sought to optimize its energy consumption.
When the need for obtaining insights into the overall use of energy became clear, Beacon Capital enrolled itself into EnerNOC’s demand response program that helped it unleash the power of EIS. The platform helped Beacon Capital visualize the energy consumption costs at a few of its properties, through which EnerNOC identified the anomalies that lead to cost escalation; the visibility helped Beacon Capital initiate corrective measures immediately, which resulted in cost savings. Thrilled by the results, Beacon Capital decided to extend the solution across all its properties. EnerNOC’s dedicated team supported the client in equipping all properties with EIS, following which Beacon Capital benefited significantly.
"EnerNOC ensures access to a bigger DR market through a dedicated dashboard, which tracks all the active registrations, contact details, and the company’s DR participation and performance"
For example, Beacon Capital needed to regulate the air temperature in its office facilities during business hours and save energy. Upon EnerNOC’s suggestion, the client experimented turning off the air conditioning system while keeping the air blowing into the facility, shortly before the operating hours ended. While the temperature was within the desired range, 1050 kW of power was saved per hour in each building, which amounted to an annual savings of $30,000. In another instance, data visibility provided by EnerNOC’s EIS helped Beacon Capital identify HVAC and chiller equipment that were functioning beyond the time of closure. Turning off the equipment at the right time resulted in significant power consumption saving over $200,000 a month.
On the Trajectory of Growth
EnerNOC’s capability to provide lucrative solutions to clients has translated into an increase in the strategic wins for the company. EnerNOC is focused on making proactive decisions to maximize shareholder value and position each of its business units on the path to success. The company’s core strengths won the attention of the Italy-based Enel Group, which in August 2017, completed the acquisition of EnerNOC. As a part of a bigger corporate house today, EnerNOC is set to make inroads into highly diversified environments like nuclear power installations, geothermal, and wind power companies. Testifying to EnerNOC’s growth is the company’s role in transforming Chile’s energy sector using renewable resources; two of Brazil’s largest solar projects will soon be leveraging EnerNOC’s solutions. With several promising projects underway, the company is poised to take the energy management domain by storm.
Company
EnerNOC: [NASDAQ:ENOC]
Headquarters
Boston, MA
Management
Michael Storch, President & CEO
Description
Provides Energy Intelligent Software platform that demystifies energy
consumption and the costs associated with it
