This strategic initiative marks EnerNOC’s official entry into the Texas market, expanding the company’s national footprint.
With peak demand of roughly 63,500MW, Electric Reliability Council of Texas’s (Ercot) load forecasts in July 2007 indicate that peak demand is expected to increase more than 25% over the next 20 years.
The American Council for an Energy-Efficient Economy estimates that by 2023, as much as 13% of Ercot’s peak demand could be addressed by demand response. In addition, Ercot said that it has recognized the need for additional demand response to ensure that the grid remains reliable as reserves tighten below the 12.5% margin considered optimal to maintain system reliability.
Based on Ercot’s testimony to the Texas legislature in February 2008, reserve margins are expected to be 13.1% in summer 2008 and are expected to fall below the 12.5% level by 2009.
EnerNOC said that, in addition to grid reliability, demand response also offers the residents of Texas an environmentally friendly alternative for meeting the region’s growing energy requirements.
Tim Healy, EnerNOC’s chairman and CEO, said: Given the dynamics of the Ercot market, including the rising peak demand, tight reserve margins and reliance on wind generation, we anticipate that demand response will be a long-term and increasingly valuable solution for maintaining grid reliability.
