SAN MATEO, CA: Mercatus announced today that by year-end 2016 its Cloud software system—used to manage energy development projects and portfolios—had been deployed by industry leading power producers and utilities to manage in aggregate over 100 gigawatts of renewable energy in development or in operation. This is enough energy to power approximately 73 million homes or the equivalent output of 50 Hoover dams.
Headquartered in San Mateo, CA, Mercatus provides a Cloud-based system for energy Investment Lifecycle Management (ILM). According to the company, ILM digitally transforms how energy producers invest and operate to accelerate the return on their project and asset portfolios. ILM provides a vehicle to drive change from a legacy business model—built for centralized power generation projects—to an agile business model equipped to compete in a high-volume and high-velocity, distributed energy world.
The milestone is consistent with other 2016 company performance metrics that demonstrate accelerating ILM traction in the power generation marketplace as evidenced by several significant new customer acquisitions and footprint expansions. Mercatus achieved a near-doubling of annual recurring revenue which is a key performance metric for venture-backed Cloud/SaaS companies.
“Our solution’s ability to impact C-level business metrics and drive business transformation was key to our success,” said Mercatus co-founder and CEO Haresh Patel. “Our industry leading clients have been able to demonstrate a 30% favorable impact to operational expenses (OpEx) in functional areas where our technology has been deployed. This has caught the attention of industry peers trying to make progress on their digitization initiatives.”
According to “Predicts 2017: Lead, Follow, or Get Out of the Way — A Gartner Trend Insight Report” (Daryl C. Plummer, Nick Heudecker, Martin Reynolds, published December 6, 2016), “energy companies have long dealt with the challenges of adapting to change. They will continue to face a turbulent future of transformation, and they must adapt in order to survive and thrive.”
“Digitalization is accelerating the rate of the energy industry’s transformation, while simultaneously shifting the business environment within which utilities operate,” wrote Gartner’s Daryl Plummer, et al.
Patel’s perspective is that momentum in 2016 is only likely to increase as the industry landscape transforms and more clients realize the benefits of ILM.
“The energy industry is undergoing an epic transformation from conventional sources of power generation to renewables. End-to-end digitization of business processes from project origination to asset operations and maintenance is required to succeed. As a result, I expect Mercatus to hit the 200 gigawatt milestone in half the time it took us to get to 100 gigawatts,” Patel said.