EnerNOC (ENOC) increases efficiency in energy consumption, aggregating negawatts through demand-response technology by managing the distribution of electric resources depending on very specific demand over different geographies at different times of the day, says Ben Kallo, Senior Analyst at Robert W. Baird & Co.
“In peak period electricity demand will actually turn down an eight-stack cooling system or turn down every other light in the aggregate over that territory. Rather than building new a power plant to meet that very specific demand, we can manage the demand with technology and reduce supply in areas where there is less demand and increase it in areas where demand is increasing,” Kallo said.
ENOC is the leader in this area, and the company is poised for a positive next two years as they emerge from regulatory overhangs due to the novelty of its energy solutions, Kallo says. ENOC may also appeal to larger energy services companies for future acquisitions given its good balance sheet and large footprint in the market, he adds.
“A small-cap company, they are basically forging the road on the regulatory side because it is somewhat of a new market. The stock gets rocked around a little bit when they have regulatory issues, and we’ve seen that over the past few years they’ve gone through too big regulatory battles, just emerging from that and really set up for a great 2013 and 2014 — good visibility in their business model,” Kallo said.
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