Case | HBS Case Collection | August 2012 (Revised September 2013)

EnerNOC: DemandSMART

by Michael W. Toffel, Kira Fabrizio and Stephanie van Sice

Abstract

EnerNOC is an energy company with an innovative business model: it serves as an intermediary between electric utilities and electricity users. It contracts with electricity users willing to reduce demand during periods of peak energy demand, and sells this as excess capacity to electric utilities. The company is facing an upheaval in the energy markets due to the dramatic growth in natural gas fracking and the resulting increase in natural gas supply. The case enables students to evaluate the EnerNOC's business model--including its environmental implications--and the potential impact of fracking on its business. The case is accessible to non-specialists, as it provides background on the electric utility industry and the debate about fracking for natural gas. Given the substantial environmental impact of the energy and electricity industries, the case is particularly relevant for courses that focus on energy, the natural environment, and environmental sustainability.

Keywords: Production Planning; productivity; supply chain management; environmental protection; energy; environment; business government relations; laws and regulation; Business Model; Environmental Sustainability; Innovation and Invention; Opportunities; Risk and Uncertainty; Governing Rules, Regulations, and Reforms; Supply Chain Management; Production; Energy Conservation; Energy Industry;

Citation:

Toffel, Michael W., Kira Fabrizio, and Stephanie van Sice. "EnerNOC: DemandSMART." Harvard Business School Case 613-036, August 2012. (Revised September 2013.)