More Smart Grid M&A as Largest US Competitive Electricity Provider Constellation Energy buys Demand Response Provider CPower

Smart Grid Consideration has picked up pace in recent days with Cisco acquiring a couple of companies.Now Constellation Energy,the Largest US Competitive Electricity Provider has gobbled up CPower an Energy Demand Response Provider with a 850 MW Capacity.This increases Constellations Total Capacity to 1500 MW making its one of the largest DR players after EnerNoc and Comverge.Note Demand Response is a virtual way of reducing peak energy requirements through voluntary reduction in electricity by residential and commercial customers.DR companies like EnerNoc help in organizing these Power Reductions which is known as Demand Response.This Sector has been one of the fastest growing sectors in the Smart Grid Area because of its economically viable on its own without subsidies and helps reducing the Carbon Footprint at the same time.

US Energy Utilities have been buying up Green Companies at a rapid clip these days taking advantage of the fall in valuations of Green Companies recently.Exelon bought Deere’s Wind Assets while NRG Energy bought Green Mountain Energy.Constellation Energy already has around 10% of its 9 GW of Electricity Capacity being sourced from Green Sources.Its Smart Grid buy is synergistic to is Energy Trading Core Business.It will help in expanding its customer base and sourcing new opportunities.For CPower Investors which are mainly PE players,it would be a good exit as competition in the Demand Response is increasing .

Constellation Energy Signs Agreement to Acquire Energy Management and Demand Response Leader CPower – EON

Constellation Energy (NYSE:CEG) today announced it has signed an agreement to acquire CPower, a leading energy management and demand response provider managing approximately 850 megawatts of demand response capacity that can be dispatched in energy markets throughout North America. The transaction would expand Constellation Energy’s total demand response capacity to 1,500 megawatts, and both strengthen and complement the company’s position as a leader in competitive electricity and natural gas supply. Terms were not disclosed.

Privately held CPower (www.cpowered.com), headquartered in New York, N.Y., designs and manages programs that allow its commercial, utility and public sector customers to reduce electricity demand during peak demand periods. The company is authorized to manage and aggregate demand response capacity programs in New York, New England, the Mid-Atlantic states (PJM), California, Texas and Ontario, Canada.