April 29, 2005 4:00 AM PDT
Warming up to climate control tech
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During peak periods, when electricity costs the most and can be harder to come by, these providers reduce energy consumption via a command, sent to a computer on your power meter, that slightly throttles air conditioners or other select appliances.
"Central air conditioners, hot water and pools can account for 75 percent to 80 percent of your utility bills," said Robert Chiste, CEO of Hanover, N.J.-based Comverge, which promotes technology for automatically curbing energy consumption.
A small but growing number of companies are focusing on advancing so-called clean technology, which maximizes nature's resources in a variety of ways, including climate control.
They might be shivering a little more than they would if they could control their thermostats themselves, but some customers clearly think automated temperature controls are worth the knockoff on their monthly bills.
Comverge and Boston's EnerNoc have emerged as two of the potential breakout companies in the small but growing market for clean technology, a broad field that encompasses new types of solar panels, water purification systems, fuel cells and more. All of the companies revolve somehow around trying to profit from maximizing nature's resources.
Comverge focuses largely on residences, while EnerNoc seeks to control energy consumption in commercial buildings, but the overall idea is the same. A module attached to a power meter in a building regularly communicates with the utility or other organization providing power over the Internet, radio channels or a cellular network.
The attention span of U.S. consumers and businesses for energy matters ebbs and flows--these days it's on the rise again. Oil isn't cheap, as many noted in their higher heating bills over the winter and in gasoline prices now ranging between $2 and $3 a gallon. With the dog days of summer not too far off, the specter of brownouts and blackouts casts a shadow. Environmental consciousness is also a factor.
But it's the bills that hit closest to home. Depending on the climate control program consumers choose, they can get a monthly rebate or experience an overall reduction of around 15 percent to 25 percent.
The utilities, meanwhile, benefit by not having to build extra power plants or buy energy at peak prices on the open market. In Salt Lake City, a utility is installing Comverge control units in 90,000 homes. Since each unit can throttle about a kilowatt of energy consumption, the units will effectively perform the same job as a 90-megawatt plant, which can cost a few hundred thousand dollars to build.
So far, the company has signed contracts for 225 megawatts of virtual peak capacity in different parts of the country and has seen annual revenue grow to around $25 million.Chilling out
EnerNoc has installed systems in New England, California and New York. Altogether, EnerNoc can deliver 125 megawatts of power fairly rapidly, and that translates to about 500 megawatts of load, or capacity, said CEO Tim Healy.
Utilities and grid operators pay a monthly fee to participate in one of EnerNoc's regional demand response programs. "We are essentially an insurance provider to the grid," Healy said. "They will pay us whether we get called or not."
When the call comes, the company can deliver multiple megawatts to a region facing a potential blackout--an increasing danger in areas such as Southern Connecticut, where the infrastructure is wobbly--in less than half an hour.
Grocery stores, office buildings and other end users participating in a demand response program, however, benefit too. Their power bills might go down; additionally, EnerNoc has developed algorithms that determine the value of the electricity they contribute to the grid while throttling back.
"All of a sudden they are getting a check from the (energy) provider for something that wasn't that tough to do," Healy said.
Companies such as Honeywell have been selling "smart" thermostats for years that can automatically throttle. The spread of the Internet and cellular networks, however, is now allowing these new companies to connect remote sites
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