1. The Financial Costs of Energy Waste NASUCA Conference – San Antonio, TX June 27, 2011

2. The Story Page 2 The potential for energy efficiency is massive The cost of NOT tapping EE is extremely high We can’t manage what we don’t measure Demand response is the skeleton key to energy efficiency Technology is our friend We need rules that credits “persistence” of operational efficiency

3. Pop Quiz Where in the top 30 does the US rank in terms of energy efficient countries? Page 3

4. Geographic Energy Efficiency The combination of technology access and energy inefficiency make the US the single best market opportunity for clean and intelligent energy management. Sources: Peter Corless 30 Sep 2005 Analysis of top 40 largest national economies (GDP) by plotting GDP per capita vs. 'energy efficiency' (GDP per million Btus consumed); an inverse examination of 'energy intensity.' GDP vs. Energy Efficiency (Top 40 Economies by GDP) Page 4

5. What is the Cost of Energy Waste? Page 5 There is more energy efficiency potential in the US than the total proven oil reserves in Saudi Arabia at less than 20% the unit price!

6. Relative Cost of Renewable Electricity in US Page 6 2010 Average $/kWh Source: REN21, Renewables 2010 Global Status Report, DOE EIA.

7. Page 7 The cheapest kWh is the one never used – it also happens to be the greenest!

8. Don’t Take My Word for It “By 2020, the US could reduce annual energy consumption by 29% in the commercial sector by deploying an array of NPV-positive efficiency measures.” - McKinsey “Energy efficiency constitutes the largest, most evenly geographically distributed, and least expensive energy resource.” - United Nations Foundation “ Combined U.S. electric and gas utility efficiency program budgets have doubled since 2006. ” - Consortium of Energy Efficiency “ The average cost of an energy efficiency kWh in the US is $0.027/kWh compared with the average retail rate of $0.097/kWh.” - National Academy of Sciences Page 8

9. “Why is there so much latent EE potential?” “Why haven’t customers bought in?” “What gives?” Page 9

10. Page 10 A Personal Perspective – The Enemy!

11. Energy Managers – A Rare Species! Source: Analysis of ~39,000 contact titles associated with C&I customer accounts in ECRM. Plant Manager1,236 General Manager633 IT490 President466 Operations Manager402 Maintenance Manager362 Facilities Manager354 Owner296 Vice President261 Maintenance Supervisor251 CFO241 Controller239 Chief Engineer235 Manager225 Production Manager218 Facilities180 Electrician173 Facility manager166 Plant Engineer166 Director of Operations161 2% of our customer’s titles contain “energy” “sus” or “env” Top 20 Titles of Existing EnerNOC Customers Page 11

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13. “Energy doesn’t call in the middle of the night and tell you that it’s getting wasted.” Chris Powell Director, Brown University (Answering the question: “Why EnerNOC?”) Page 13

14. Our Customers Love Our DR! As of March 31, 2011: 6,300 MW under management 3,900 C&I demand response customers 10,100 C&I sites under management Page 14

15. 15 Energy Network Operations Center Page 15

16. DR is EE’s Skeleton Key EnerNOC DR is: –No cost – we install DR technology for free –No risk – we protect customers from event underperformance –Cash Payments – we pay you to be ready/to respond –Simple – we make easy what would be complex Our DR technology unlocks EE by providing: –Real-time, five-minute, web-based visibility into usage –Training wheels for deeper energy management –An extensible platform – we connect to anything –DR payments become catalyst to invest –Baseline from which to “prove” EE to CFO Page 16

17. 17 A Story About Operational Energy Savings Page 17

18. 18 Action Recommended: Enable auto-control – no cost! As a result of this measure new protocols were established for requesting off-hours usage to further limit this issue from re-occurring. $21,000 annual savings, 102 Tons of CO 2. Those Hooligan Chess Players! Page 18

19. Two Paths to Energy Efficiency 1.Traditional – Capital/Equipment Retrofits 2. Progressive – Real-Time Operational/Behavioral Efficiency Page 19

20. The Story Revisited Page 20 The potential for energy efficiency is massive The cost of NOT tapping EE is extremely high We can’t manage what we don’t measure Demand response is the skeleton key to energy efficiency Technology is our friend We need rules that credits “persistence” of operational efficiency