American company Ecova, which conducts energy efficiency audit, announced having acquired Retroficiency. This merge will make it possible for both companies to extend their target audience and provide it with a set of services that is more comprehensive.
The one of the most growing topics in the United States is energy efficiency. New companies are being founded, which are developing innovative approaches to how to reduce energy consumption.
In terms of energy efficiency enhancement American company Ecova is buying a small firm Retroficiency. By the way, Ecova is owned by Cofely USA, whereas the last one is a French electric utility global company Engie (previously GDF Suez) subsidiary. The price of the contract executed is not revealed.
Nowadays Ecova, which has almost 1.5 million employees, offers energy efficiency audit services for 50 utility companies and 700 000 buildings placed in New York. This firm conducts on-site audit, which means that inspectors have to visit every controlled building, evaluate its energy consumption data and develop relevant saving strategy.
Such approach gave an opportunity to Ecova to have saved more than 108 terrawatt-hours during the past 11 years. It is a great achievement, but every on-site audit operation costs too much and takes too much time. That is why the company was interested in its work optimization.
Ecova’s director of utility solutions for commercial and industrial, Diane Levin, announced that the company had been watching Retroficiency’s activity since this firm had been founded.
Retroficiency suggests completely different approach to energy efficiency audit. This company uses strategy based on remote meter data analysis. A special software needs to be developed and provided to the offices in order to evaluate their energy savings potential.
Retroficiency creates such software, which makes it possible to spare a great amount of money and time. One of the ways to reduce energy consumption is, for instance, to turn the thermostat by one degree more than normal. Since the company offers its services to approximately 30 000 buildings, $145 million could be saved by using this approach.
That is why Ecova has taken a decision to acquire Retroficiency. Together these two companies will be able to provide their clients with more comprehensive set of services.
Addressing this challenge can face some obstacles
However, there is possibility that some problems will arise. The main one is that the use of Retroficiency’s forward-looking technology will give great but long-term results. In this case, not every entrepreneur is ready to invest now to get profit in the distant future. A large part of them is likely to invest in a more easy-to-visualize things (new furniture, for instance), because it will give them an opportunity to raise rents more quickly.
Retroficiency is a small company placed in Boston. It has only 28 employees, who are developing energy audit software for commercial buildings. It was founded in Boston in 2009 and had its activity based on investments. Originally, Retroficiency sold software to real estate firms, but then changed its marketing strategy and began to render services mostly to the utility companies.
Ecova is an American energy audit company, which belongs to the French giant company Engie at present. It was founded in 1996 and has changed several names since that time (for example, originally it was Washington Water Power). After having acquired several energy-management companies, Ecova became a big firm with 1400 employees, which aims to help commercial buildings and utility companies to reveal their energy efficiency potential and reduce power consumption.
Engie is a French multinational company, which provides consumers with electricity, natural gas and renewable energy. It was founded in 2008 and now owns Cofely USA. As a result, it also owns Ecova and recently acquired company Retroficiency in United states.
