EnergyHub Acquires Resideo Grid Services to Accelerate VPP Growth for Utilities

Key Terms

virtual power plants (vpps) technical

A virtual power plant pools many small energy resources — like rooftop solar panels, home batteries, electric vehicle chargers and flexible industrial loads — and coordinates them as if they were a single power station. For investors, VPPs matter because they create new revenue streams and risk profiles by selling energy, capacity and grid services without owning large physical plants, effectively turning scattered assets into a marketable, flexible product.

distributed energy resource management system (derms) technical

A distributed energy resource management system (DERMS) is a software and control platform that monitors, coordinates and optimizes many small energy sources and flexible loads—like rooftop solar, batteries, electric vehicle chargers and smart thermostats—so they work together with the broader power grid. Investors care because a DERMS can increase grid reliability, lower operating costs, unlock new revenue streams (for example by selling flexibility or delaying expensive upgrades), and change the value and earning potential of energy assets much like an air-traffic controller makes many flights run more smoothly.

distributed energy resources (ders) technical

Distributed energy resources (DERs) are small-scale electricity producers and storage systems—like rooftop solar panels, home batteries, small wind turbines, and smart thermostats—located close to where power is used. They matter to investors because DERs can reduce a utility’s need for large central plants, create new revenue streams from local generation and grid services, and shift demand patterns much like adding many backyard gardens changes a city’s food supply dynamics, affecting valuations and regulatory risk for energy companies.

demand response technical

Demand response is a program or market mechanism where electricity users are paid or incentivized to reduce or shift their power use when the grid is stressed or prices are high, similar to turning down nonessential appliances during a heat wave to ease a traffic jam. It matters to investors because it can lower peak energy costs, affect utility revenues and market prices, and create opportunities for companies that provide the software, equipment, or services that enable those load changes.

grid edge technical

The grid edge describes the equipment and software sitting where homes, businesses and local generation meet the wider power grid — things like rooftop solar, batteries, electric vehicle chargers, smart thermostats and local control systems. It matters to investors because these devices change how electricity is produced, stored and sold, creating new revenue streams, cost savings and risks for utilities and technology companies much like adding smart plumbing or storage to a neighborhood changes who controls water flow and bills.

Acquisition strengthens EnergyHub’s Edge DERMS offering and provides Resideo Grid Services utility clients access to a broader ecosystem of DERs

NEW YORK--(BUSINESS WIRE)-- EnergyHub, a leading provider of grid-edge flexibility solutions, today announced its acquisition of Resideo Grid Services, a leader in demand response aggregation and program management. The acquisition reflects a growing industry shift toward using a single integrated edge distributed energy resource management system (DERMS) platform to manage all distributed energy resources (DERs) as utilities expand Virtual Power Plants (VPPs) to include EVs, batteries, and other DERs.

Acquisition strengthens EnergyHub’s Edge DERMS offering and provides Resideo Grid Services utility clients access to a broader ecosystem of DERs

As demand for electricity grows, VPPs play an essential role in helping utilities deliver reliable, affordable service. Edge DERMS platforms are key to scaling VPPs, allowing utility operators to orchestrate millions of devices at the grid edge.

“As utilities face rising demand, they’re using VPPs for fast, cost-effective, flexible capacity,” said Seth Frader-Thompson, CEO of EnergyHub. “Resideo Grid Services provides DER management services to over two dozen utilities and markets, and has built a strong reputation in demand response. Together, we now manage over 2.5 million DERs on one platform, allowing any utility to orchestrate any DER to meet evolving grid needs.”

The acquisition solidifies EnergyHub’s position as the leading Edge DERMS, trusted by utilities to manage a wide range of DERs from a single platform. It also makes new DER classes available to Resideo Grid Services utility clients – making it easier for them to deploy and grow new programs through unified visibility and control.

“VPPs are the fastest, cheapest and most customer-centric solution to load growth,” added Frader-Thompson. “This acquisition reflects our confidence in our strategy and our ability to lead the market toward a future where VPPs are critical tools integrated into system planning and grid operations.”

Dave Oberholzer, General Manager at Resideo Grid Services, said, "I am extremely proud of the innovation, customer partnerships, and strong reputation our Grid Services team has built. By joining forces with EnergyHub, we will be able to offer our clients a broader ecosystem of DERs and leverage our winning platforms and talented team to accelerate the reliable and cost-effective transition to a carbon-free grid."

EnergyHub’s platform is trusted by more than 120 utilities, who collectively serve more than 55 million customers, including APS, Duke Energy, Eversource, National Grid, and LADWP. With Resideo Grid Services, EnergyHub is making it easier for utilities to deploy new types of DER programs, gain visibility, and manage resources at scale.

The terms of the transaction were not disclosed.

EnergyHub is a subsidiary of Alarm.com (NASDAQ: ALRM), the leading platform for the intelligently connected property.

About EnergyHub

EnergyHub is the leading grid-edge DERMS provider. Utilities rely on EnergyHub's DERMS platform to manage all distributed energy resources to serve grid and market objectives. EnergyHub works with over 120 utilities in North America to manage more than 2.5 GW of dispatchable flexible capacity. We empower utilities and their customers to create a clean, distributed energy future. EnergyHub is a subsidiary of Alarm.com (NASDAQ: ALRM). For more information, visit www.energyhub.com.

About Resideo Grid Services

Resideo Grid Services is a leader in demand response aggregation and program management, helping utilities and energy retailers manage grid demand with precision and efficiency. Since 2012, our team has been providing innovative solutions to reduce peak demand, optimize load flexibility, and support utility programs nationwide. Resideo currently manages or participates in nearly 300 U.S. utility demand management programs and engages in six wholesale energy markets.

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Source: EnergyHub