EnerNOC, a provider of energy management applications, has entered into a multi-year contract to provide Tucson Electric Power (TEP) with up to 40MW of demand response capacity beginning later this year using its demand response application, DemandSmart.

If the ACC approves the contract, EnerNOC will deploy DemandSmart to manage a network of commercial, institutional and industrial facilities in TEP’s service territory. When dispatched by TEP, EnerNOC will activate its network of customers to reduce electricity usage and will manage each site’s performance in real time from its Network Operations Center (NOC).

In return, customers will receive payments from EnerNOC, as well as access to DemandSmart, which provides real-time energy data and reporting functionality to maximize demand response event performance and identify additional energy savings opportunities, EnerNOC said.

Tim Healy, chairman and CEO of EnerNOC, said: “EnerNOC is proud to announce Tucson Electric Power as our newest utility partner. TEP is projecting a peak demand of over 2,500MW in its service territory this summer. By offering demand response to its customers, TEP and EnerNOC are helping to ensure a cost-effective, clean, and reliable supply of electricity.”