Dive Brief:
- Comverge Inc. announced this week it has signed another utility partner, this time working with a large investor-owned utility in the Midwest on demand response and efficiency programs for commercial customers. The statement did not name the utility.
- Comverge's growth into the small commercial segment highlights utility efforts to expand their demand management programs. The cloud-based demand response provider has more than a dozen accounts targeting the segment.
- The announcement follows the company's news a week ago, that it signed a ten-year contract extension with Entergy Arkansas for a summer residential demand response program.
Dive Insight:
Comverge's new account is the 16th the company has deployed targeting the small and medium-sized business (SMB) segment. It may be a sign utility interest in commercial customers is rebounding after being outpaced by the residential sector.
A report last year from Navigant noted that 21 GW of North American demand response capacity comes from C&I programs, and 7 GW from residential, the business side of DR being a more mature segment. But C&I growth of demand response was slowing, the firm said, while the residential side accelerated. By 2025, Navigant predicts both segments will be much closer in size, with 26 GW of C&I demand response and 23 GW for residential.
Comverge Chief Operating Officer Dave Neal said the deal reflected "strong interest across the industry to deploy new products and services." The company helps utilities connect with about 45,000 SMB customers in demand response programs, he said.
"While representing approximately 35% of utility load, the SMB customer has been underrepresented when it comes to participation in demand-side management programs," Neal said.
The company also continues to grow in the residential market. Last week, Comverge said that its residential program with Entergy Arkansas was originally designed to serve as a 15 MW virtual power plant—but is now 35 MW.
