Raymond James & Associates, Inc., Analyst Pavel Molchanov says EnerNOC, which exclusively served the U.S. until 2010, has been doing an effective job of diversifying its geographic footprint since 2010. This year, Molchanov says he expects to see EnerNOC gain traction in Asia.
“The concept of demand response, which has traditionally been very focused in the U.S., can actually be even more economically appealing in other geographies, and I think Japan and Korea are good examples of this,” Molchanov says. “These are countries that have high power prices, much higher than in the U.S., and with frequently tight supply/demand on the grid. In Japan in particular, after the disaster at Fukushima, the country’s nuclear reactors have been shut down, which have caused blackouts and extremely high power prices.”
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Demand response helps balance the grid using advanced demand curtailment, and Molchanov says it is something for which the Japanese government is currently advocating. He says EnerNOC entered into a joint venture in December 2013 with Japanese conglomerate Marubeni.
“Revenue here is not something that’s going to materialize immediately, but it’s a good start, and I would expect EnerNOC to get into other overseas markets,” Molchanov says. “In addition to Japan, they’re already in Australia and New Zealand. I think they will get into other geographies in the next 12 months.”
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