Enel snags EnerNOC for $250 million

The rigidity of today’s electrical grid in the United States is a constant source of vexation for utilities, but that was before demand-response technology became more readily available. Enel Green Power North America is betting in a big way that demand-response software will play an ever-increasing role in grid flexibility as it evolves in the 21st century.

That’s why it invested $250 million in cash and stock when it purchased EnerNOC, one of the leading U.S. providers of demand demand response and energy services for utility, commercial, institutional and industrial customers.

Having the ability to ramp up or ramp down electricity use depending on the amount of demand at the time enables greater grid flexibility, stability and efficiency. In return, customers can get paid for their participation, depending on the regulatory framework available in their state or community. EnerNOC’s software solutions make the job easier for customers to be part of a demand-response solution.

“This acquisition is a milestone for Enel and the new e-Solutions business line that will bring an unparalleled suite of energy services to our new and existing customers,” said Francesco Venturini, head of global e-Solutions at Enel. “With the close of this transaction we strengthen our position to leverage the technology and digital transformation that is taking place within the energy sector and open the door for the creation of new, innovative business opportunities that will meet and respond to the changing needs of our growing customer base.”

Enel will incorporate EnerNOC’s more than 8,000 customers, 14,000 sites under management and a total of 6 GW of demand response capacity. Enel, whose parent company The Enel Group has business around the globe, believes EnerNOC’s portfolio compliments theirs.