Tesla’s announcement on April 30 of its stationary storage product has been treated like the biggest energy news since Edison invented the lightbulb. Elon Musk’s cult of personality has captured the world’s attention, and anything he says gets extreme coverage. That’s not to say that there is no substance behind Tesla’s developments or that they won’t lead to changes in the industry. At the very least, the attention raises the profile of the normally staid energy world, which should benefit all players in the space.
One company that caught the Tesla wave was EnerNOC, which announced a partnership with Tesla’s new commercial and industrial storage offering. EnerNOC’s stock jumped over 20% after the news hit. That’s the short-term bump that such notoriety can lead to. I spoke with Micah Remley, EnerNOC’s senior vice president of product, to learn about what the company sees as the real benefits of this relationship.
Basically, Tesla will provide the storage hardware to a facility and EnerNOC will provide the software smarts to tell the unit when to charge or discharge in an optimal manner. The software does this by taking in signals from inside the building and from external markets and figuring out how to gain the most financial benefit on an ongoing basis. Remley said that the Tesla unit has some smarts as a standalone unit, but the gains from EnerNOC’s software should outweigh the costs. When asked about the potential economic impact on EnerNOC’s business from this relationship, Remley said it is too early to measure as the partnership is still in its pilot phase. But it does not appear that this will add significantly to the bottom line in the near term.
I spoke with EnerNOC’s CEO Tim Healy at the company’s analyst conference back in November 2013, when the company launched its foray into the energy intelligence software space. I asked him if he planned on getting more into the hardware side with topics such as combined heat and power, solar, and storage; Healy said EnerNOC is clearly focused on the software side of things. It appears the company has found a way to keep to that mantra while not letting the proliferation of distributed energy resources pass it by.
Back to Earth
EnerNOC struck a similar deal with SunPower in the solar space in March that didn’t get nearly as much attention as the Tesla deal. From EnerNOC’s standpoint, things like solar and storage are just new endpoints that can be integrated into its existing software that has mainly been developed for demand response purposes. This move represents an important diversification strategy as competitors offer holistic solutions, customers demand central control systems for all of their various resources, and regulators in states like New York and California attempt to add value to all types of new technologies and market structures.
EnerNOC’s stock has come back down after the Tesla hype, but the partnership strategy should benefit the company in the long term.
Tags: Distributed Energy Resources, Energy Storage, stationary energy storage, Tesla, Utility Transformations
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