Extensible Receives $3.4 Million Investment to Scale Its Operations for Load Flexibility Markets
The company will use the funds to scale its sales and operations, enabling more building owners to save on electricity costs through real-time optimized control.
OAKLAND, Calif., June 14, 2021 — Extensible Energy, a cleantech load flexibility software company, has raised a $3.4 million venture capital investment led by Blu Ox Ventures. Extensible will use the investment to scale its sales and operations for DemandEx™, intelligent software that manages flexible loads in commercial buildings for savings on utility tariffs today while preparing to participate in upcoming load flexibility markets.
Since releasing DemandEx software in 2019, Extensible has primarily targeted the commercial solar market. At one-tenth the installed cost of battery-based solutions, Extensible’s commercial solar partners have sold DemandEx as a software solution that can save building owners up to 30% on demand and time-of-use (TOU) charges. DemandEx delivers these savings by intelligently and automatically shifting the time of use of flexible loads, such as heating, cooling and ventilation (HVAC) and batteries. When combined with solar installations, HVAC retrofits, or other energy upgrades, those savings can be far larger.
DemandEx also enables building owners to participate in new load flexibility markets that will generate revenue for managing the building’s flexible loads and distributed energy resources (DERs). Extensible Energy expects that future load flexibility markets will not only generate demand response revenue, but also pay load flexibility market participants to manage loads for frequency regulation, peak reduction, real-time load shifting, transmission and deferral (T & D) services, and many more grid services. According to a 2019 Brattle Group report, the load flexibility market potential will reach nearly 200 Gigawatts by 2030 and exceed $15 billion in revenue for participating building owners utilizing load flexibility software like DemandEx.
“Remote, continuously optimized control of building energy systems is a game-changer for building owners and grid operators,” said John Powers, co-founder and CEO of Extensible Energy. “We’ve shown that DemandEx is effective in managing loads in commercial solar buildings, but that’s just a small part of what DemandEx can do for building owners and for the grid.” Powers added, “With this new funding, we can now expand our efforts and help building owners to save on their electricity bills today and participate in demand response and emerging load flexibility markets tomorrow. We can also expand our work with leading utilities, customer choice aggregators (CCAs), and grid operators that are now developing the infrastructure for true load flexibility markets.”
“Commercial buildings use an estimated 35% of the electricity consumed in the US, and less than 5% have tools to intelligently manage energy use. Predictive, real-time, and autonomous load control is essential to realizing the benefits of grid-interactive buildings, including lower operating costs, better control, lower carbon footprint, and new revenue from load flexibility markets. We are excited to invest in Extensible Energy, which not only shares this vision, but has built and deployed a solution with proven success across a wide variety of difficult real-world building types and environments,” said Casey Miller, co-founder of Blu Ox Ventures.