Eskom selects Comverge to manage intelligent energy management program

Comverge Inc. a provider of intelligent energy management solutions for residential and commercial and industrial (C&I) customers, announced that it has been selected by Eskom, the largest electricity provider in Africa, to manage its supply and demand challenges by creating and co-managing Africa’s first open market for demand response resources.

SOUTH AFRICA. Dec. 21, 2011. Comverge Inc. a provider of intelligent energy management solutions for residential and commercial and industrial (C&I) customers, announced that it has been selected by Eskom, the largest electricity provider in Africa, to manage its supply and demand challenges by creating and co-managing Africa’s first open market for demand response resources. Under the terms of the approximately $27 million agreement, Comverge will deploy the IntelliSOURCE 2.0 platform for Eskom to register, dispatch and operate a new competitive demand response market in South Africa for an initial 500 MW of demand response resources. In addition, the agreement calls for Comverge to provide at least 100 MW directly as one of the new curtailment service providers (CSPs) serving this newly established market.

“We are excited to launch the Eskom Demand Response Aggregation Pilot Programme (DRAPP) to leverage the power of demand response to help ensure greater grid reliability across South Africa,” said Andrew Etzinger, senior general manager integrated demand-side management, Eskom. “With Comverge, we have one of the world’s most experienced demand response providers as a partner in these efforts and together, we will deliver a comprehensive and very successful program to benefit local companies and help us optimize energy usage.”

Headquartered in Johannesburg, South Africa, Eskom generates, transmits and distributes approximately 95 percent of the electricity used in South Africa and approximately 45 percent of the electricity used in Africa. With peak demand in South Africa at around 37,000 MW, Eskom selected Comverge to help balance supply and demand across a diverse customer base that includes industrial, mining, commercial, and agricultural customers and redistributors.

“Working closely with Eskom, Comverge will establish the first sophisticated, broadly available capacity market in South Africa and help launch a network of curtailment service providers,” said R. Blake Young, president and chief executive officer, Comverge. “This project requires proven, comprehensive demand response technology and know-how and we believe that Comverge’s IntelliSOURCE enterprise software platform combined with our decades of experience in understanding energy markets will serve Eskom well in meeting its progressive energy management objectives.”

The terms of the contract are for a pilot program scheduled to run through March 31, 2013. To support the partnership with Eskom, Comverge will open a new office in Johannesburg, South Africa.

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