In the News
CPower Expands Demand-Response MarketCleantech Group
October 24, 2008
New York-based CPower is trying to make energy efficiency as profitable for its customers as demand-response programs.
CPower, which changed its name from ConsumerPowerline in September, has spent the past year starting its incentivized energy efficiency program in New York, in which the independent system operator (ISO) or utility pays a commercial or industrial customer for energy reductions derived from energy efficiency improvements, and CPower serves as the mediator.
The program is similar to the incentivized demand-response programs managed by CPower and companies such as EnerNOC (Nasdaq: ENOC) and East Hanover, N.J.-based Comverge (Nasdaq: COMV) to reduce the power load when needed, such as days of peak demand (see EnerNOC extends contract with SCE).
CEO Gary Fromer told the Cleantech Group that CPower has driven the push for managed energy efficiency programs in New England, where customers are selling energy efficiency for $25 a megawatt hour. But it's also a growing trend around the world for utilities trying to permanently reduce energy loads must provide, he said.
"Demand response is growing in North America," Fromer said. "But there are even larger energy-efficiency markets developing that will resemble the demand response markets. We can leverage our experience there for energy efficiency."
The demand-response industry is expected to be worth about $1.3 billion in the U.S. in 2008. Analysts predict a nearly 30 percent compound annual growth rate, with the sector reaching nearly $8 billion in 2014.
Last week the U.S. Federal Energy Regulatory Commission gave further support to the long-term prospects of demand response with finalized regulations to strengthen the role of demand-response companies in negotiating with ISOs and utilities.
CPower serves customers in the U.S. and Canada but is looking to break into the European market, Fromer said. CPower has 2,000 megawatts of electric load under management, making it one of the largest private demand response provider in North America, he said.
The company is currently in talks to raise a funding round, said Fromer, who declined to reveal how much CPower is seeking. The company previously raised $17 million in a Series A round last year from Expansion Capital Partners, Bessemer Venture Partners, Schneider Electric Ventures, the New York City Investment Fund and Vantania Holdings (see Water soaks up the cash).
The company was founded in 2001 and expects to have revenue of $30 million to $40 million in 2008, Fromer said. He declined to discuss whether the company was profitable.
CPower has 80 employees thanks to acquisitions of Oxford, Conn.'s DemandDirect in July and Texas-based Xtend Energy in January.
Customers include Jones Lang LaSalle, the University of Massachusetts, Lenox Hill Hospital, Kmart, Sears and Wal-Mart.