Technology

Budderfly to create virtual power plants

August 13, 2024

Reducing energy usage can lower restaurants' costs and shrink carbon footprints, which is why Budderfly, an energy-as-a-service provider for franchises, has acquired a grid-edge distributed energy resource management system from Sunverge Energy. Using the technology, Budderfly can aggregate distributed energy resources across its sites, positioning it to create virtual power plants capable of providing flexibility to the grid, increasing resiliency for customers and growing new revenue streams, said Al Subbloie, founder and CEO of Budderfly.

"VPPs are crucial for capitalizing on the opportunities of the energy transition. Through this acquisition, we are making this essential technology available to the middle market, allowing our customers to benefit from renewable energy and contribute to a more sustainable, reliable and affordable energy future," Subbloie said in a company press release. "This is a natural progression born out of the success of the Budderfly model, which has become synonymous with delivering sustainable efficiency outcomes to our stakeholders."

By procuring and installing flexible load technologies like battery storage, behind-the-meter solar generation, and EV charging infrastructure at small- and mid-sized commercial buildings, Budderfly plans to enroll thousands of its customers' sites in demand response programs over the next five years. It will also onboard several utility customers in Arizona, Maryland, the Northeast and the Pacific Northwest, aligning with its long-term strategy to contribute to a more flexible, more stable energy grid, enabling substantial revenue opportunities through program incentives.

"Distributed energy resources, which can be aggregated into virtual power plants, play a valuable role in reducing energy costs for end users and alleviating regional pressure on the grid," Pavel Molchanov, managing director and equity research analyst at Raymond James, said in the release. "Software solutions, like Budderfly's VPP-enabled platform, make DERs even more economically attractive and capable of supporting local grid needs."

Former Sunverge employees with decades of distributed energy resource management systems and energy market experience will join Budderfly's team of nearly 400 employees.