Comverge, EnerNOC lead assessment of demand response providers

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Comverge and EnerNOC now lead the demand response provider market in terms of strategy and execution, according to a new report from Navigant Research.

Market liberalization, economic pressures and environmental regulations are all moving utilities down a path of fewer traditional central power plants and toward more distributed energy resources (DER) to address future needs.

Demand response, one strategy expected to help speed this transition and make the grid more reliable, has created a vendor landscape in which providers are offering more flexible and technologically advanced solutions for curtailing electricity demand than ever before.

“Comverge and EnerNOC have gotten a jump on the competition through early market entry, strong market and customer relationships, and the ability to adapt and find new market opportunities,” says Brett Feldman, senior research analyst with Navigant Research. “These pure-play providers hold the leading positions in the industry, but larger and more-integrated companies are starting to catch up, and many of the companies currently at the lower end of this Leaderboard represent new demand response technologies and business models that may hint at the future growth of the industry.”

The demand response market has matured in the United States and is now starting to expand into other regions, including Europe, where numerous countries are opening up energy markets to demand response resources and rolling out smart meters, according to the report. In Asia Pacific, countries like Australia, New Zealand and South Korea have active demand response programs, while Japan and China are piloting demand response projects and expect to expand the role of demand response in their markets in the next few years.

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