Enel gains US demand team
$250m acquisition of EnerNOC expected to be complete in third quarter of year
Enel Green Power North America has signed an agreement to buy demand response and energy services company EnerNOC for $250m.
Enel said the acquisition will make it a global leader in demand response services, while bringing EnerNOC’s energy management technology and services to Enel’s existing commercial and industrial customers.
The deal will see Enel incorporate over 8000 customers, 14,000 sites under management and a total of 6GW of demand-response capacity.
Under the agreement with EnerNOC, Enel will launch a tender offer to EnerNOC’s shareholders for 100% of its shares at a price of $7.67 per share in cash, representing an approximate 42% premium to the company’s closing stock price on 21 June.
The transaction is expected to be closed by the third quarter of 2017.
Demand response allows consumers to respond to market signals by increasing or reducing power consumption to address excess electricity supply or demand, enabling greater grid flexibility, stability and more efficient use of power infrastructure and energy resources, said Enel.
Customers are remunerated for participating in demand response programmes when allowed by the relevant regulatory framework, it added.
Enel Group will use energy management capabilities to bolster the company’s service offerings in existing operational markets and in new markets.
Enel head of global e-solutions Francesco Venturini said: “Enel's acquisition of EnerNOC, six months after our acquisition of Demand Energy Networks, reflects our strategic focus on the energy technology and services space.”