Energy management firm CPower, which helps businesses optimize their operations while reducing their energy use (and glean financial rewards for doing so), has raised $10.68 million in a second round of capital from Mayfield Fund (in its first energy investment), among others. The New York-based company will use the fresh financing to develop its technology offerings and expand to other regions.
CPower specializes in turn-key energy solutions, meaning that businesses can adopt its systems and practices fairly easily and see quick results, the company says. Specifically, it offers ways for businesses to cut down on the amount of energy they use overall, meet regulations, manage energy loads at peak times and obtain white certificates (certificates that verify energy reductions have been achieved), which can then be used to compensate for future overages or sold to other businesses that miss their energy targets.
CPower gives its clients a leg up in the energy efficiency space by forging partnerships with utilities. Earlier this month it struck a deal with three major Maryland utilities — Allegheny Power, Potomac Electric Power Company and Delmarva Power and Light Company — to provide 200 megawatts of demand response capacity from 2011 through 2016. Basically, during peak times or grid emergencies, the firm will help participating utility customers cut down on their own consumption to lower market energy prices and stabilize the power grid (preventing brownouts, etc.). Customers who enroll in the program will receive regular payments in exchange, even if they aren’t called upon to dial down their power use.
For the most part, the firm works with companies looking to limit their energy footprints. CPower counts big names like Wal-Mart, Sears, NYU Medical Center, Cushman Wakefield and Kmart among its clients. It’s got a strong presence in New England, New York, Texas, California and Ontario but is looking to expand from there. It competes with companies like EnerNOC and Comverge, which run demand response programs of their own.
Bessemer Venture Partners, Expansion Capital Partners, Schneider Electric Ventures, New York City Investment Fund and Consensus Business Group also participated in the recent round of funding. CPower raised a $17 million first round of funding in 2007.