Also on the radar are a €140 million ($150 million) financing round for investor EIT InnoEnergy as Europe is set to update energy policy, and a triple acquisition of US gas utilities by Canada-based Enbridge.

Shell to reportedly sell sonnen

On Thursday, German publication Handelsblatt reported that oil giant Shell intends to sell sonnen, the German developer of energy storage systems.

The report comes in as Shell moves to divest its retail operations within the UK, Netherlands and Germany as part of a strategic restructuring.

The strategy follows the company’s review of market conditions, announcing in June its retail exit.

Kicking off the strategy late last week, Shell sold its UK and German domestic operations to energy major Octopus Energy.

Shell’s Dutch operations are winding down and in the process of transition.

Shell acquired sonnen back in 2019. According to Handelsblatt, the sale will be a significant deal for Shell, which acquired the Bavaria-based company for €500 million ($535 million); the sale is expected to be valued between €1.35 billion ($1.4 billion) and €1.8 billion ($1.9 billion), according to Handelsblatt.

So far, sonnen has had a very strong 2023 with an expected turnover of €450 million ($482 million). Earlier this year the company announced increased capacity of its German VPP at 250MWh, marking the largest in Europe.

The company is expecting to grow the demand response tech, which consists of tens of thousands of intelligently-controlled sonnenBatteries throughout Germany, to 1GWh in the coming years.

Shell has declined to comment.

Have you read:
Iberdrola taps into automated demand response with Spanish VPP
US DOE labs built a VPP with solar, a nuke, electrolysers and storage. It worked

EIT InnoEnergy’s private placement round

Dutch energy investment company EIT InnoEnergy has received over €140 million from strategic players in industrial, financial, training and digital sectors in a private placement round.

According to the company, proceeds from the financing will be used for increasing new deal flow, launching new industrial initiatives, tapping opportunities from new regulatory frameworks and expanding in the US.

InnoEnergy’s portfolios focus on early-stage innovative technologies and teams in clean tech, normally CAPEX heavy.

InnoEnergy currently has a portfolio of 200 companies, three of which are unicorns, on track to generate €110 billion ($118 billion) in revenue and save 2.1G tonnes of CO2e accumulatively by 2030.

According to InnoEnergy, these companies have collectively raised €9.7 billion ($10.4 billion) in investment to date.

Tabled earlier this year, the European Union has been expecting to pass several policies in mind of better enabling its industrial capacity within the energy sector.

Namely, the European market design has had a proposed reform and the Green Deal Industrial Plan – within which are contained the Critical Raw Materials and Net Zero Industry Acts – will aim to upskill the workforce, develop European clean tech supply chains and lower barriers to deployment.

Part of the private placement round will, states InnoEnergy, also be used for training and upskilling:

“The new skills, and the larger workforce we will need to fulfil net zero objects, are significant, so with our shareholder make-up of those in industrial and financial sectors, and also in academia and research, we are perfectly placed to deliver progress,” stated the company.

More from Smart Energy Finances:
Mathematical optimisation to bolster grid-based energy trading
Glasgow’s SMS acquires heat pump specialist

Earlier this week, the European Network of Transmission System Operators for Electricity (ENTSO-E) hosted the first High-Level Electricity Grid Forum, of which EIT Innoenergy was a collaborator, during which the grid was placed high on the agenda as a strategic focus for future investments.

New investors in the round include Societe Generale, Santander CIB, PULSE – CMA CGM Energy Fund, Renault Group, Stena Recycling and NIIT.

Existing shareholders Siemens Financial Services, Schneider Electric, Capgemini, Volkswagen Group, ING, Koolen Industries, GROUPE IDEC and Engie were also among the strategic players.

Commenting on the announcement, Diego Pavia, CEO of EIT InnoEnergy, said: “New strategic players have joined InnoEnergy’s outstanding cap table, several shareholders have reinvested, and altogether we have secured sufficient fresh financial resources to double our on-going impact.

“The accelerated energy transition in Europe and in the world, and an increased re-industrialisation ambition in the western world are unique opportunities for InnoEnergy, its portfolio companies and our trusted ecosystem partners. We have geared up for the journey ahead.”

Details on individual investor contributions have not been disclosed.

Triple gas utility acquisition

Canada-based energy company Enbridge has acquired three US-based gas utilities to create what it is calling the largest natural gas utility franchise in the US.

Enbridge entered three separate agreements with Dominion Energy to acquire EOG, Questar and PSNC for the purchase, which totals $14 billion after deductions, including $4.6 billion of assumed debt.

Enbridge owns and operates pipelines throughout Canada and the US, transporting crude oil, natural gas and natural gas liquids. The company also generates renewable energy, touting a growing European offshore wind portfolio.

Upon the closings, Enbridge will add to its portfolio gas utility operations in Ohio, North Carolina, Utah, Idaho and Wyoming, representing a significant presence in the US utility sector.

The acquisitions will double the scale of the company’s gas utility business to approximately 22% of Enbridge’s total adjusted EBITDA and is hoped to balance the company’s asset mix evenly between natural gas and renewables, as well as liquids.

Enbridge states that following the closings, its gas utility business will be the largest by volume in North America with a combined rate base of over CDN$27 billion ($19.8 billion).

In a press release announcing the acquisition, Enbridge cites how “high-quality, utility cash flows from the gas utilities” will reduce its business risk.

Michele Harradence, president of GDS and executive vice-president at Enbridge, commented that the utilities, each being based in the US, offer strategic advantage when it comes to regulation, namely how they “operate in regions with very attractive regulatory regimes” while offering diverse, low-risk growth opportunities.

However, earlier this week, credit ratings agency Moody’s changed Enbridge’s outlook from stable to negative, a result of the acquisitions.

“The negative outlook on Enbridge is prompted by the company’s announcement that it would acquire US gas utilities… adding pressure to an already weak financial profile that we expect to persist following the transaction close,” said Gavin MacFarlane, Moody’s vice-president – senior credit officer.

“Although Enbridge’s business risk profile improves modestly with the transaction, it is not enough to offset ongoing pressure on the company’s financial profile.”

What are your thoughts on Shell‘s reported strategy to move away from the residential market? If the reports are correct it will be interesting to see who manages to acquire sonnen, which has only been growing.

For the latest finance and investment announcements coming out of the energy sector, make sure to follow Smart Energy Finances Weekly.

I will also be attending Bentley’s upcoming Going Digital Awards in Infrastructure in Singapore in October. Will I see you there?

Cheers,
Yusuf Latief
Content Producer
Smart Energy International

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Also on the radar are stats from BNEF showing how, in 2022, clean energy activities generated at least $2.56 trillion globally and the latest green bond from E.ON valued at a total of €1.5 billion ($1.6 billion).

Energy trading optimised by grid physics

US-based SESCO Enterprises has announced the use of a mathematical optimisation model to simulate market dynamics based on the transmission grid.

Namely, the power trader has signed on with Gurobi Optimisation LLC, which develops decision intelligence tech, to support their price optimisation.

As a trading firm in the energy markets, SESCO’s goal is to simulate the condition of the national grid, as well as consumer demand for the electricity it delivers.

These outputs simulate energy market dynamics and become inputs to the models SESCO has built to determine bid pricing at auction.

“The unique thing about electricity markets is that prices aren’t really determined by people buying and selling in an order book. Next-day prices are determined at the ISO (Independent System Operator) auction, where clearing prices are often set by the outcome of an optimisation solve – typically using tools like Gurobi,” explains Dylan Modesitt, chief investment officer of SESCO.

“So using the partial information we have, we try to determine what the optimal pricing would be.”

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SESCO’s business involves speculating on next-day electricity prices, as well as the longer-term forward markets for trading power.

“Our trading expertise is about the congestion component of price, which is the kind of pricing differential that arises from transmission lines being saturated at their limit,” explained Modesitt.

“And when transmission lines are saturated to some local limit, loss is going to emit as heat. So to avoid any kind of catastrophic failure, price signals are sent on either side of that transmission line. It’s a lot of demand speculation, and it requires an understanding of the actual physics of the grid.”

SESCO began building out mathematical models and used them to solve toy problems with another commercial solver.

However, states the trader, due to several million constraints and variables, either the incumbent solver was unable to find feasible solutions, or each solve simply took too long to be useful.

Hence the turn to Gurobi, which they state provides a solution that can capture the complex effects of the physical grid state as it impacts market outcomes.

Specifically, the advanced optimisation techniques used by Gurobi’s solver, states SESCO, improve the pricing precision and capital efficiency of their trading approach.

Listed global firms hit $2.56 trillion in clean energy revenues

According to analysis from BloombergNEF (BNEF), in 2022 clean energy activities generated at least $2.56 trillion globally, with power utilities and renewable manufacturers accounting for two-thirds of the figure.

The figure forms 2.6% of GDP, according to BNEF’s Clean Energy Exposure Ratings, which identified and rated over 8,000 listed companies with revenue exposure to clean energy activities, from over 50,000 assessed.

Listed electric utilities like EDF, Enel and E.ON accounted for $1.06 trillion (42% of the total) in clean energy revenues, followed by renewable energy manufacturers and developers including CATL, Vestas and Trina Solar, contributing $628 billion (25%) in clean energy revenues in 2022.

“While automakers like Volkswagen and Toyota are among the biggest earners in the rankings, their exposure remains low and so the auto industry only contributes $370 billion to the total,” said Mike Daly, lead author of the report.

Also from Smart Energy Finances:
Glasgow’s SMS acquires heat pump specialist
BEV fires shoot down Nikola shares

E.ON issues €1.5 billion in green bonds

E.ON has successfully issued two bond tranches with a combined volume of €1.5 billion ($1.6 billion), backed by a combined peak orderbook of €4.3 billion ($4.7 billion).

Both tranches value €750 million ($815.6 million) each, with the first maturing in March 2029 and the second in August 2033.

E.ON’s CFO Marc Spieker commented on the green bonds: “The high demand from investors underlines again that we are on the right track with our strategy, which is focused on sustainability, digitalisation and growth.

“E.ON is determined to drive forward the energy transition in Europe. We want to invest a total of €33 billion ($35.9 billion) in the energy transition by 2027. Green bonds are an important financing instrument to do this, and we will continue to use them for our financing in the future.”

According to E.ON, a positive market environment has already allowed them to prefund financing needs for the upcoming 2024 fiscal year, while 2023 funding needs were already covered successfully by a €1.8 billion ($2 billion) bond issuance in January.

The proceeds of this green bonds will thus be used to finance and/or refinance Eligible Green Projects as defined in E.ON’s Green Bond Framework.

Bank of America Securities, Deutsche Bank, Natwest Markets and Unicredit served as active bookrunners in the transaction.

What are some of the strategies you’ve seen companies use to improve their energy trading and analytics? Are there any you’d like to see covered? Let me know.

For the latest finance and investment news coming from the energy sector, make sure to follow Smart Energy Finances Weekly.

Cheer,
Yusuf Latief
Content Producer
Smart Energy International

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Also on the radar are two further acquisitions: that of a Chinese EV manufacturer by a Dubai-based tech company, as well as of a grids-focused advisory company by a US-based global consultancy.

SMS acquires heat pump division for flexibility services

The Scottish smart metering company has announced the acquisition of Evergreen Energy’s domestic services division, which specialises in the installation and maintenance of renewable energy assets, including heat pumps, solar and battery storage for homeowners.

According to SMS, the acquisition will enhance their capacity to deliver an extended range of low-carbon, behind-the-meter energy solutions to the UK’s domestic and commercial marketplaces.

The company, which earlier this year pointed to their flagship smart meter services and storage portfolios as key profit areas, is calling the acquisition “highly complementary to SMS’s leading role in the delivery of Great Britain’s smart meter programme, owning and managing c.4.5 million meter and data assets for customers,” they state in a press release.

Heat pumps are a key clean tech asset for enabling demand side response, which is gaining attraction in the UK as a method of alleviating peak demand on the country’s grid system.

The acquisition is thus hoped to deliver associated data solutions and demand flexibility services to energy suppliers, businesses and consumers.

Earlier this year in February, SMS announced a demand side response project, part of the UK Government’s Flexibility Innovation Programme, to design and deliver testing schemes for flexibility applications.

Earlier this week, UK market research company Cornwall Insight released research illustrating the crucial element smart meters represent for flexibility services, which have exponential savings potential, should households participate.

Also from Smart Energy Finances:
How the faltering grid drives investment
IMServ’s strategic smart metering acquisition to tap MHHS

SMS’s acquisition follows other strategic investments made last year in EV charge point software company, Clenergy EV, and of smart energy data platform, n3rgy, which similarly bolstered SMS’s presence in the EV charging infrastructure and data services markets.

Evergreen Energy’s other divisions, including the Homely and Easy MCS brands are not included in the transaction and will operate independently from the Evergreen Energy brand going forward.

Stated SMS CEO Tim Mortlock: “Whilst we will continue to operate the Evergreen Energy brand that has been successfully established within the northwest, the acquisition will bolster the Group’s overall capacity to deliver these carbon reduction assets on a wider national scale to a fast-growing domestic and commercial marketplace.

“The location of Evergreen’s Manchester base close to our national training academy and innovation centre in Bolton, where we are focussed on upskilling our engineering workforce and testing new technologies, will also be highly beneficial.”

A Middle Eastern acquisition of Chinese EV manufacturing

Dubai-headquartered mobility tech company NWTN has reached an agreement to make a strategic investment of $500 million in China Evergrande New Energy Vehicle Group (EVGRF), a Chinese automobile manufacturer that specialises in developing EVs, aiming to accelerate the company’s position in the EV space.

NWTN and EVGRF entered into a share subscription agreement pursuant to which NWTN will acquire approximately 27.50% of shares of EVGRF alongside the right to nominate a majority of EVGRF’s board.

The proposed transaction is expected to close in Q4 2023, subject to customary and other closing conditions.

NWTN, a mobility and green energy company, has a full vehicle assembly facility in Abu Dhabi. Technologically, the company has expanded its capabilities to include PV generation, green hydrogen production and energy storage.

The strategic acquisition forms part of the company’s continuing expansion, vying in growing markets in the Middle East, North Africa, China and other countries.

NWTN states an emphasis for their business on the use of AI technologies, autonomous driving and personalised passenger experience as key to its market positioning.

The company believes a partnership with EVGRF will be instrumental in addressing the EV needs of the Middle East and will facilitate EVGRF’s research and development and mass production of new car models for eventual export overseas.

According to Reuters, the deal forms part of a $3.2 billion plan unveiled by Evergrande to reduce its debt and stay afloat.

Have you read:
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Consultancy’s acquisition to reinforce grid expertise

US-based ICF, a global consulting and tech services provider, has acquired CMY Solutions, a power and energy engineering firm that advises on decision-making for grid modernisation, programmes and investments.

Founded in 2016, CMY’s team of 50 specialised experts advise senior leaders of utilities and developers across the US, Europe and Asia, including investor-owned utilities, electric municipalities and electric cooperatives.

ICF on the other hand consists of approximately 9,000 employees, consisting of business analysts and policy specialists who work alongside digital strategists, data scientists and creatives in the public and private sectors.

The acquisition brings to ICF strong backgrounds in renewable energy integration, distributed energy resources (DER) impact studies and management.

Additionally, CMY brings “deep technical expertise in substation, transmission and distribution system design, protection and control, North American Electric Reliability Corporation (NERC) compliance, as well as system planning and capital strategy consulting,” states ICF in a press release announcing the acquisition.

Commenting on the acquisition was John Wasson, ICF chair and CEO, who stated how the deal will “strengthen our ability to support utilities’ needs for grid transformation, reliability, resilience and renewables integration in a much more holistic way.

“As one team, we will scale our industry-leading energy service offerings and continue to grow our rapidly expanding technology and data management capabilities across the various markets we serve.”

Acquisitions have been key in this week’s Smart Energy Finances with smart metering for flexibility, EV manufacturing and grid modernisation expertise for consulting all seen driving strategic corporate moves.

What are your thoughts? What have you seen as having a large influence on decision-making when it comes to acquisitions in the energy sector and what would you like me to cover?

Let me know.

Cheers,
Yusuf Latief
Content Producer
Smart Energy International

Follow me on Linkedin

Also on the radar is significant growth from Chameleon Technologies, which announced their 10 millionth smart meter IHD as well as Greenbird’s acquisition by energy giant GE Vernova.

Nikola Motors shares on the fall

Nikola Motors, an Arizona-headquartered electric truck maker, has voluntarily recalled 209 battery electric vehicles (BEVs) after reporting a coolant leak as the cause of an EV truck fire at their headquarters earlier this year.

A temporary hold has been placed on Nikola’s BEV sales.

“The safety of customers, dealers and team members are Nikola’s top priority,” stated the company in a press release last Friday as days later the company’s stock plummeted.

According to Bloomberg reportage, the company’s shares fell by up to 20% at the start of the week, a trend signalling another nail to the coffin after the company’s shares were recorded as falling 98% from their peak reached in June 2020.

Internal investigations from Nikola’s safety and engineering teams indicated a single supplier component within the battery pack as the likely source of the coolant leak.

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“At Nikola we take safety very seriously,” said Steve Girsky, Nikola’s CEO. “We stated from the beginning that as soon as our investigations were concluded we would provide an update, and we will continue our transparency as we learn more.”

The company’s initial statement on the fire in June alluded to foul play as a possible cause, although a review has since suggested foul play or other external factors were unlikely.

Although the Class 8 Tre BEV’s have been recalled, the company has stated that their hydrogen fuel cell electric vehicles (FCEVs), which are currently in production, will not be affected as they make use of a different battery design.

According to the company’s Q2 2023 report, 18 customers placed orders to Nikola and dealers for over 200 hydrogen FCEVs.

Nikola Corporation designs and manufactures heavy-duty BEVs, FCEVs and energy infrastructure solutions, such as energy storage systems and hydrogen charging station infrastructure, through its brand HYLA, which was launched in January this year to oversee the company’s energy products for producing, distributing and dispensing hydrogen.

The BEV case follows the company naming a fourth CEO after Michael Lohscheller stepped down earlier this month due to family concerns, leading to the company losing more than a quarter of its market value, states Reuters. Lohscheller was replaced by former General Motors executive Stephen Girsky.

Nikola has flagged “substantial doubts” about its ability to continue as a going concern for the next year, reiterating its warning for the third time since February, as it awaits “critical” additional capital.

The news from Nikola also comes as concerns rise over fires caused by EV batteries.

Research released in February this year, Full-scale fire testing of battery electric vehicles, finds that although the characteristics of BEV fires are similar to those of traditional passenger vehicles, jet flames caused by thermal runaway – a result of exponential increases in heat within the battery cell – “accelerates the fire spread to other combustibles of BEVs”.

Thus, states the researchers, thermal runaway and reignition mark major risks to first responders.

Also from Smart Energy Finances:
How the faltering grid drives investment
IMServ’s strategic smart metering acquisition to tap MHHS

GE Vernova acquires Greenbird

Energy major GE Vernova’s digital business has acquired Greenbird Integration Technology AS, a data integration platform company focused on utilities.

The acquisition comes 10 years after Greenbird’s launch; the company’s platform will accelerate GridOS, which the company calls “the world’s first software portfolio designed specifically for grid orchestration, adding new capabilities for connecting systems and integrating data across the grid more easily and at scale”.

The financial terms of the acquisition are not being disclosed.

The Greenbird acquisition is hoped to expand the capabilities of GE Vernova’s data fabric, eliminating data silos to make it faster and easier to connect and aggregate energy data, reducing the time and expense of data integration projects.

Responding to Smart Energy International was Frederik ten Sythoff, Greenbird VP of communication and marketing, who commented on the company’s outlook after the successful acquisition:

“As a company, we are proud that we have contributed with our thought leadership to highlight the importance for utilities to move into a data-driven future and with our technology to simplify this transition for them.

“We see the challenges in the industry are getting bigger and bigger. We need a much bigger focus and bigger solutions to make an impact. We’re using data to accelerate the industry and world to sustainable energy.

“GE Vernova has a legacy and proven track record to address these unique challenges we are facing in the energy sector. The acquisition is a strong signal and commitment to utilities, partners, and the industry of the strength of GridOS and the important role it’ll play in accelerating a more sustainable energy grid.”

Read more

Chameleon Tech’s 10 millionth IHD and significant growth

UK-based smart energy technology business Chameleon Technology has announced the manufacturing and delivery of its 10 millionth in-home display (IHD), a record they state for the industry, enabling insights into energy consumption for consumers through “visible, transparent, real-time data” they state in a release.

The IHDs connect to energy providers’ smart meters to help consumers track their energy use and costs. By the end of the UK smart meter rollout, two in every three homes are projected to have a Chameleon Technology IHD, according to the company.

The announcement of the milestone was followed by the opening of new offices for the clean tech company in the UK, after being awarded over £3.6 million ($4.6 million) in government funding for additional projects, including the Green Home Finance Accelerator (GHFA).

The GHFA aims to make available innovation funding for the development of green finance products which can enable the uptake of home energy efficiency, low carbon heating and micro-generation retrofit measures in the UK.

Through their award, Chameleon Technology’s HTC-UP project will aim to help domestic homeowners looking to improve their home’s energy efficiency, with initial support tailored to the needs of landlords.

The funding will be used to assess the viability of a “one-stop-shop for energy efficiency improvements” they state, from initial assessment to financing.

Heat Transfer Co-efficient (HTC) technology will be used to provide homeowners with an accurate measurement of a property’s energy efficiency rather than having to rely on the survey-based method used to produce current EPC (engineering, procurement and construction) ratings.

The HTC algorithm takes smart meter data and internal temperature readings, collected through the ivie Bud in-home display, and combines these with external temperature readings gained from third party weather data.

This combination of data is hoped to create a much more accurate measurement of how much heat is escaping the home, leading to a more precise carbon-efficiency score for the property.

What are your thoughts about the financial insecurities that come with investments in new technologies?

Let me know and make sure to follow Smart Energy Finances for the latest finance and investment news coming out of the energy sector.

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Yusuf Latief
Content Producer
Smart Energy International

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Namely, a new battery energy storage fund has been announced in the US, which will be used to establish multi-year offtake contracts for asset owners in Texas and California.

And in Europe, TenneT and Alliander have announced their H1 results, both citing the grid as a key investment theme.

Energy Storage Fund

Gridmatic, a US-based power marketer, has launched its first Energy Storage Fund.

They will use the $50 million fund to oversee the management of up to 500MW of battery capacity in the ERCOT (Electric Reliability Council of Texas) and CAISO (California Independent System Operator) markets.

The fund is divided into two tranches, with the initial one successfully completed through a $24.95 million investment from an energy investor.

Using the fund, Gridmatic will establish multi-year offtake contracts with asset owners to operate energy storage using its AI algorithms.

Gridmatic has already begun operating a 50MW/100MWh battery storage system in Texas using the fund.

Announcing the release, Gridmatic cites its ability to ensure secured revenue streams for developers’ projects through offtake agreements, enabling them to obtain necessary financing.

This, in turn, empowers storage developers to recycle their capital into the development of additional storage systems.

Gridmatic is then able to maximise the returns of the contracted storage systems via its AI-enabled optimisation, they state.

Have you read:
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The company references their storage report, showcasing a 46% increase in revenues when back-tested against actual results for storage systems in the ERCOT market in 2022.

“By decoupling project development and active management of the batteries, this structure derisks the operational phase of a project for storage owners and supports the growth of the energy storage industry,” states the company in a release.

The fund is also hoped to open a new asset class for investors, with the sector’s growth set to be further accelerated by the Inflation Reduction Act.

The fund is proof that new kinds of investment opportunities are on the rise as the battery energy storage market is maturing. This is fuelled by extreme market volatility due to the growth of renewables and extreme weather and an increased need for grid stability.

Grid investment driving H1 results

After the first six months of 2023, companies and utilities have been releasing their quarterly and half-yearly results to demonstrate their successes or disappointments.

H1 results from TenneT and Alliander in particular are of interest, as they show the allocation of funds into grid systems. TenneT has been heavily investing in the grid to ensure security of renewable supply in the wake of the war in Ukraine, while Alliander has been reinforcing power lines as the grid continues to falter.

Also from Smart Energy Finances:
IMServ’s strategic smart metering acquisition to tap MHHS
AMI provider acquires a narrowband communications solution

TenneT

In the first half of 2023, TenneT invested €3.5 billion ($3.9 billion) in grid expansion and replacement, almost double the investment they made for the same period last year.

The Dutch-German TSO’s underlying EBIT increased by €351 million ($387.5 million) to €930 million ($1 billion).

In announcing the results, TenneT is calling the first half of 2023 “marked by solutions and partnerships for the medium and long term economies of scale.”

TenneT’s ‘economies of scale’ is reference to completion of large and long-term framework agreements to develop high-voltage infrastructure, including framework contracts for 14 grid connection systems, each with 2GW capacity and valuing a total of more than €40 billion ($44.2 billion).

Stated TenneT CEO Manon van Beek: “The huge grid expansion and maintenance task we carry out for the energy transition does not take place overnight. With our hundreds of projects, both onshore and offshore, now and over the next two decades, we are realising the electricity system of the future with a clear end picture in mind: Target Grid 2045.

“Achieving economies of scale, innovating together with the market, international cooperation and timely and governmental supported long-term infrastructure planning are key in making a carbon-neutral energy system feasible and affordable for households, industries, suppliers and TenneT itself.”

Alliander

The first half of 2023 saw network company Alliander invest €60 million ($66.2 million) more into expanding and maintaining the gas and electricity network than in the same period last year.

However, despite the significant investment figure, the company has also stated how “it is impossible to keep up with the pace of the energy transition” calling on companies for flexible use of the electricity grid to relieve congestion pressure as the Netherlands continues to experience bottlenecks.

Alliander’s net result in the first half of 2023 amounted to €109 million ($120.3 million), €2 million ($2.2 million) higher than last year. Operating income for the first six months increased by €275 million ($303.6 million) to €1.37 billion ($1.51 billion).

However, total operating expenses increased by €258 million ($284.9 million) in the past six months, mainly due to higher costs for grid losses because of rising energy prices. Operating costs also rose due to rising purchasing costs at TenneT.

In the first half of 2023, 595 new transformer houses were built with 1,084km more cable laid than in the first half of 2022 (918km).

Are your investments plans guided by the need to expand and secure a reliable grid? Let me know.

Make sure to follow Smart Energy Finances Weekly for the latest in finance and investment news coming out of the energy industry.

Cheers,
Yusuf Latief
Content Producer
Smart Energy International

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Also on the radar are robust earnings from an Indian company for their shunt resistors, which they claim to be the “backbone of smart metering technology and energy management systems” as well as a raised Series B funding round for Electric Vehicle (EV) services provider ev.energy, which they will use for global expansion and new EV data-driven services.

Acquisition to bolster smart metering expertise

IMServ Europe, a UK-based energy data collection and metering specialist, has acquired Power Data Associates, a specialist meter administrator providing unmetered services to electricity, gas and water utilities and non-domestic energy customers.

IMServ is calling the acquisition an augmentation of their existing proposition in energy data collection, advanced meter infrastructure (AMI) and smart metering.

According to the company, unmetered supplies metering systems will be required to upgrade to half-hourly settlement as part of a forthcoming market-wide half-hourly settlement (MHHS) rules.

IMServ has already identified MHHS as a key strategic priority and aims to ease the transition for every sector of the market.\

The acquisition of Power Data Associates is hoped to enable this goal and allow customers with both metered and unmetered requirements to meet their needs ‘under one roof.’

IMServ will be the only company to offer the full range of MHHS services across the metered and unmetered data services segment.

Power Data Associates will continue to operate as a standalone company, with all current employees and senior leadership retained.

Power Data Associates specialises in providing services to help customers manage their unmetered energy usage. Key unmetered applications include street lighting, telecommunications infrastructure and, increasingly, electric vehicle (EV) charge points.

IMServ on the other hand is one of the UK’s leading meter operators and data collectors, servicing over 25% of the UK’s electricity consumption through the monitoring of 80 billion units of energy data.

Also from Smart Energy Finances:
AMI provider acquires a narrowband communications solution
Funding for autonomous EV charging and GridBeyond’s acquisition of Veritone Energy

Robust earnings from smart meter shunt resistors

Indian manufacturer of bimetal/trimetal strips and shunt resistors Shivalik Bimetal Controls has announced robust financial performance for Q1 FY24.

The company reported operational revenue rise to Rs113.07 Crore ($13.7 million) signalling 15.74% YoY growth. According to CFO Rajeev Ranjan, this is “our highest quarterly number in history.”

The company is calling the financial growth reflective of the Indian and global shift towards electrification.

The Indian government’s RDSS scheme has been opening up significant revenue streams for smart metering projects in the aims of reducing aggregate transmission and commercial (AT&C) losses.

Stated the company’s chairman, S.S. Sandhu, “Our shunt resistors are part of the backbone of smart metering technology and energy management systems, providing the precision and reliability required for efficient energy usage.

“As India accelerates its smart meter deployment to achieve electrical energy security, we are proud to be a key player in providing critical components, contributing to the country’s electrification renaissance.”

Shivalik Bimetal Controls was founded in 1984 and is headquartered out of New Delhi. It manufactures and sells thermostatic bimetal/trimetal strips for switching components used in electrical, electronics, automotive, agricultural, medical, defence and industrial applications.

The rising demand for switchgear, battery management and smart metering systems, they state, conveys solid long-term prospects for their product lines.

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ev.energy enters grid services with successful financing

ev.energy, an EV charging software platform, has received a $33 million Series B raise, bringing total funded capital to $46M.

ev.energy connects EVs to grid networks, intelligently managing charging for more than 120,000 EVs daily by charging vehicles at grid-friendly times and connecting them to the company’s virtual power plant (VPP).

This latest funding round provides a pathway for ev.energy to access an additional 400 million energy customers by utilising their shareholders’ energy retail, fleet, vehicle and insurance networks.

The funding round was led by National Grid Partners (NGP) with support from Aviva Ventures, WEX Venture Capital and InMotion Ventures, with continued support from existing investors Energy Impact Partners (EIP), Future Energy Ventures (FEV) and ArcTern Ventures.

The funding will also enable ev.energy to expand its global operations while building on its growth across the US and UK.

Since 2018, ev.energy has won over 30 national, regional and municipal utility contracts while developing partnerships with charging brands and auto original equipment manufacturers (OEMs) like the Volkswagen Group.

In announcing the funding, the company cites their offering of moving, storing and discharging energy for megawatts in flexible capacity as a crucial service in a time when utilities in the US and Europe tackle extreme weather conditions, placing significant strain on the electricity grid system.

Bobby Kandaswamy, Senior Director of Pathfinding & Incubation Investments at National Grid Partners, commented, “ev.energy’s approach to providing a convenient, compelling experience for drivers to charge at home and on the road during grid-friendly times is essential for grid operators.

“Combined with its V2G services, ev.energy positions utilities like National Grid as an accelerant to the clean energy transition.” As part of NGP’s investment, Kandaswamy has joined the ev.energy board of directors.

ev.energy will also use these partnerships to co-create services that leverage vehicle data, deliver smart charging and, in the future, more fully develop bi-directional charging.

WEX Venture Capital’s investment will support the expansion of ev.energy’s solution to bring managed charging to fleet vehicles.

For the latest finance and investment news coming out of the energy industry, make sure to follow Smart Energy Finances Weekly.

Cheers,
Yusuf Latief
Content Producer
Smart Energy International

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Also on the radar are announcements of a ‘resilient’ business model based on smart meter-generated revenue for Smart Metering Systems (SMS), growth financing for a smart meter data analysis provider and a €3 billion ($3.9 billion) scheme for cleantech companies in Germany.

AMI provider Ubiik acquires Mimomax Wireless

Taiwan-based Ubiik, an IoT and Advanced Metering Infrastructure (AMI) provider, has acquired New Zealand-based Mimomax Wireless, a provider of communication solutions for narrowband channels.

The acquisition is being touted as an acceleration of Ubiik’s market expansion.

The new combined entity, which has not yet been named, aims to bring new wireless solutions to market, providing communications for utilities and critical infrastructure.

According to the Taiwanese provider, their current business is on track to exceed 1 million AMI device deployments by 2024, citing the “coverage limitations of existing public LTE networks that impede utilities’ AMI deployments” as the prime challenge they seek a solution towards, the company stated in a joint press release announcing the acquisition.

Since 2007, Mimomax Wireless established itself as a manufacturer of radios utilising Multiple Input, Multiple Output (MIMO) technology.

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The Kiwi company caters to utilities, stakeholders within the energy sectors and governments among others. Their communications solutions, states Mimomax, optimises data throughput and enables near-real-time visibility of critical assets.

Commenting on the announcement was Tienhaw Peng, founder and CEO of Ubiik, who stated how the acquisition “injects additional momentum into our collective growth. In tandem, we’re poised to boost the performance, security and cost-effectiveness of critical networks.”

Ubiik states how the merger will allow for an array of new solutions for mission and business-critical communications. For example, existing US utility customers who have deployed Mimomax products in the narrowband 700MHz Upper Block A can now leverage their spectrum acquisition by adding Ubiik’s goRAN NB-IoT Band 103 as a retrofit.

This opportunity, adds the AMI provider, offers the ability to connect smart meters and IoT devices for “a fraction of the cost of deploying new pLTE infrastructure”.

SMS’s ‘resilient’ smart metering business model

Glasgow-based smart meter and carbon reduction asset developer Smart Metering Systems (SMS) has, within its H1 2023 trading update and outlook report, reported 13.3% revenue growth.

Specifically, the Scottish clean tech company’s Index-linked Annualised Recurring Revenue (ILARR), a referral to revenue generated from meter rental and data contracts, grew from £97.1 million ($125.4 million) at the close of December 2022 to £110 million ($142 million) as of June 30, 2023.

The company’s CEO, Tim Mortlock, commented on the growth, citing the ‘resilience’ of their model:

“We have delivered another strong operational and financial performance during H1 2023, a testament to the resilient nature of our business model which is underpinned by our index-linked recurring revenues.

“Our existing pipeline of meter and grid-scale battery assets is expected to more than double the Group’s EBITDA in c.4 years compared to FY 2022, with significant additional growth opportunities in existing and developing CaRe assets.”

Within the first half of 2023, the company SMS installed 220,000 smart meters and has maintained market share of 14%.

According to the report, their engineering capacity delivered higher volumes of activity, largely driven by transactional callout services alongside a higher proportion of single fuel installations.

The Group also increased its engineering capacity and expects meter installation run-rate to accelerate as a result.

When it comes to financing, the Group claims its current pipeline of smart meters and grid-scale batteries can be fully funded from asset-backed, internally-generated cash flows and debt facilities.

The Group is also considering asset recycling to maintain a “prudent level of gearing in the medium term and to support future growth”, they state in the release.

Also from Smart Energy Finances:
Funding for autonomous EV charging and GridBeyond’s acquisition of Veritone Energy
Enel divests 50% of Australian renewable operations to Japanese oil and gas giant

Expansion financing for a smart meter data analysis provider

CIBC Innovation Banking has increased its growth financing commitment to Bidgely, a provider of AI-powered energy intelligence solutions for energy providers worldwide.

The additional financing commitment of $18 million – 2020 saw Bidgely secure $8 million from the same company – will strengthen Bidgely’s ability to support critical utility initiatives, namely within the EV and grid modernisation markets.

Bidgely’s UtilityAI analyses smart meter data to provide appliance-level insights into daily energy consumption, giving utilities insights into energy usage patterns and anticipated grid loads.

Bidgely touts its platform’s ability to coordinate accurate grid planning and load forecasting, together with the ability to better manage the influx of EVs on the grid through optimised time of use, load shifting and managed charging.

“Utilities around the world rely on Bidgely’s artificial intelligence-powered energy solution to guide their clients to smart energy decisions,” said Amy Olah, managing director of CIBC Innovation Banking. “Our continued support speaks to Bidgely’s success and our commitment to back innovative software companies across North America throughout their growth journey.”

€3bn for German low-carbon tech – batteries, heat pumps and more

The European Commission has approved a €3 billion ($3.9bn) German scheme under the Temporary Crisis and Transition Framework to support private investments in low-carbon assets for the country’s transition to net zero.

The scheme, touted as in line with the tenets of the proposed Green Deal Industrial Plan, will take the form of direct grants, tax advantages, subsidised interest rates and guarantees on new loans for companies producing low-carbon technologies.

Said companies will include those with business in battery energy storage, heat pumps, electrolysers, wind turbines, solar panel, CCUS and key components needed to produce such tech or related critical raw materials necessary for their production.

The aid will be meted out by 31 December 2025.

For the latest finance and investment news coming out of the energy sector, make sure to follow Smart Energy Finances Weekly.

Cheers,
Yusuf Latief
Content Producer
Smart Energy International

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Series A for autonomous EV charging

Rocsys, a developer of autonomous charging solutions for electric transportation, has announced a $36 million Series A funding round.

Rocsys combines soft robotics, AI-based computer vision and data-driven services to adapt existing chargers into an autonomous system that can plug in and out without manual intervention.

According to the Dutch company, the solution removes the risk of operator errors, ensures regulatory compliance and vehicle uptime and minimises damage and human exposure to high-voltage equipment.

They add how the solution works for consumer and fleet vehicles, including port equipment, industrial applications, heavy-duty and more.

Led by SEB Greentech Venture Capital, the round includes participation from Graduate Entrepreneur, the European Investment Bank (EIB) and returning investor Forward.One.

With the investment, which includes a roughly equal split of debt and equity financing, Rocsys will expand the capabilities of its platform as it scales up its presence in the US and Europe.

“There’s too much friction in the EV charging process today, creating needless barriers to sustainable transportation,” said Rocsys Co-founder and CEO Crijn Bouman.

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“That’s why we created a technology-agnostic solution that converts any charger into a fully automated experience, maximising the return on investment and sustainability impact of already-installed charging infrastructure. With this Series A funding, we’re bringing this breakthrough solution to more customers and industries worldwide.”

The capital infusion will support research and development into additional features for the platform, which include intelligent parking guidance, expanded software integrations for vehicle navigation and fleet management systems and additional remote diagnostics and teleoperations support.

Rocsys also plans to build out its North American division, headquartered in Portland, Oregon, to further support application engineering and customer service in the region while expanding local supply chain and manufacturing activities.

As part of the round, Rocsys welcomes four new members to its Board of Advisors, including Mikko Huumo of SEB, Frederik Gerner, and Jan Willem Friso of Forward.One, and new chairperson Dr Gregor Matthies.

Ireland’s GridBeyond acquires Veritone Inc Energy Business

Through an acquisition, Veritone Energy’s acumen and energy management solutions have been integrated into Irish tech developer GridBeyond.

California-based Veritone develops software that uses AI for energy forecasting, optimisation, and control, aiming to unlock the full potential of Distributed Energy Resources (DERs) while enhancing reliability.

Dublin-headquartered GridBeyond, on the other hand, develops a technology platform that provides real-time optimisation of distributed assets across a range of industries and asset types.

The acquisition sees Veritone’s extensive portfolio of such AI-powered solutions integrated into the Irish business. It is also a strong growth signal for GridBeyond, expanding its capabilities in the US.

The combination of the two technologies will allow GridBeyond to offer more functionalities to its customers through a new design platform, which they describe as “an extremely accurate forecasting technology” in a press release announcing the acquisition.

One particular combination is that of Veritone’s aiWARE Enterprise platform, which utilises AI forecasting to boost profit from DERs, into GridBeyond’s virtual power plant (VPP) platform.

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Equity capital for a VPP

In the realm of VPPs, Leap, a software platform that aggregates DERs and connects them into VPPs, has secured a new capital raise totalling $12 million in equity financing.

The California-based company utilises customer meter points – to date connecting over 70,000 in the US – to facilitate automated access to energy markets.

Assets such as battery storage systems, EV charging points, smart thermostats, building management systems and other DERs are connected, with the aim of easing the process for technology providers and operators to earn revenue in demand response and other grid services programmes.

Leap co-founder and CEO Thomas Folker, commented on the successful finances: “With this new investment, we will continue to add high-value features to our platform, grow our network of technology partners and expand our value stack across geographies as we advance our mission to decarbonise the world’s electric grids.”

Earlier this year in April, the US-based VPP operator joined the Virtual Power Plant Alliance (VP3).

“Distributed energy resources are a growing priority for both consumers and utilities. With Leap’s unique ability to monetise all types of assets — from energy storage to electric vehicles to building management systems — it is a market maker in an increasingly crowded field,” said Standard Investments’ Logan Ashcraft, who was named to Leap’s board of directors.

The funding round was led by Standard Investments with participation by DNV Ventures and Sustainable Future Ventures as well as existing Leap investors, including Union Square Ventures, Congruent Ventures and National Grid Partners.

An acquisition to bolster ultrasonic water meter readings

French industrial group Sagemcom, which develops broadband communication and energy solutions, has acquired Odit-e, a French digital player specialising in AI solutions for the planning, operation and maintenance of low-voltage drinking water electrical distribution networks.

The acquisition enables Sagemcom to broaden its range of software solutions (namely the Siconia software suite) for network managers, relying on Odit-e for the analysis of data collected by smart meters and sensors installed in the networks.

According to Sagemcom, the Siconia technology offering includes a range of ultrasonic smart water meters to control, monitor and manage water use in residential and industrial environments.

Odit-e’s solutions, utilising smart meter-gathered data, aims to inform decision making for DSOs, through ‘Physics informed AI’ algorithms.

Thus, through the acquisition, Sagemcom is aiming to strengthen its position in the electricity and water distribution markets.

In a release announcing the acquisition, Patrick Sevian, Sagemcom president commented on how the deal “strengthens our expertise in energy transition and enables us to meet the growing needs of energy and water distribution operators.

“By combining the skills of Odit-e and Sagemcom, we are convinced that we will be able to offer ever more innovative and efficient industrial solutions to our customers.”

Make sure to follow Smart Energy Finances Weekly for the latest in finance and investment announcements coming from the energy industry.

Cheers,
Yusuf Latief
Content Producer
Smart Energy International

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Also on the radar is capital commitments for a Danish renewables fund held by Copenhagen Infrastructure Partners, which they claim place it on track to being the biggest of its kind globally, as well as the EIB’s raised support package to REPowerEU of up to €45 billion.

Enel sells part of Australian operations

Italian green energy major Enel, acting through its fully-owned subsidiary Enel Green Power (EGP), has signed an agreement with Japan-based INPEX Corporation, for the sale of 50% of the Group’s activities in Australia, namely Enel Green Power Australia and Enel Green Power Australia Trust.

The sale of the two entities, which are currently wholly owned by EGP, went for approximately €400 million ($449 million) enterprise value, €140 million ($157.2 million) of which is in debt.

Upon closing, EGP and INPEX are expected to jointly control EGPA, overseeing the company’s renewable generation portfolio and continuing to develop its project pipeline of wind, solar, storage and hybrid projects.

The overall transaction is expected to generate a positive impact of €87 million ($97.7 million) on the 2023 Group’s ordinary and reported EBITDA.

Moreover, the deal is expected to generate a positive effect on the Group’s consolidated net debt of approximately €145 million ($162.8 million).

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The sale marks the latest from the Enel Group to consolidate its debt: October 2022 saw the Group divest 50% stake in US-based Gridspertise and launch a set of sustainability-linked bonds worth €4.1 billion ($4 billion); March this year saw them sell all equity stakes in its Romanian operations to Greece’s Public Power Corporation.

EGPA operates 3 plants totalling 310MW of installed gross capacity powered by solar as well as one 76MW wind project under construction and one 93MW solar project in execution.

EGPA is also developing a significant portfolio of wind, solar, storage and hybrid projects across Australia.

The sale marks a continued entry into the renewables scene for Inpex, a Tokyo headquartered oil and gas giant – the largest exploration and production company in Japan –  that has recently announced clean hydrogen and ammonia projects, which they claim as a first for Japan.

€5.6 billion for Copenhagen Infrastructure’s fifth fund

Copenhagen Infrastructure Partners (CIP) has reached first close on its fifth flagship fund – Copenhagen Infrastructure V (CI V) – at €5.6 billion ($6.3 billion) in capital commitments received.

According to the Danish CIP, which specialises in renewable infrastructure investments  – the commitment place CI V on path to reach its target of €12 billion ($13.4 billion), becoming what the company claims the “world’s largest dedicated greenfield renewable energy fund” they state in a press release.

A large group of institutional investors across continental Europe, the Nordics, the UK, North America and the Asia-Pacific region participated in the first close of CI V.

The investment strategy, states CIP, is a continuation of CIP’s predecessor flagship funds CI I, CI II, CI III, and CI IV, applying a repeated approach where projects are entered early and de-risked and optimised prior to the start of construction to capture an attractive greenfield premium.

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The fund will focus on greenfield investments – a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operations from the ground up.

CPI’s fund will focus on such investments specifically within large-scale renewable energy infrastructure.

According to CIP, the fund has a global reach and intends to diversify investments across technologies such as offshore & onshore wind, energy storage and solar in low-risk OECD countries in North America, Western Europe and Asia Pacific.

At this first close, the Fund has ownership of more than 40 renewable energy infrastructure projects with a total potential commitment of approximately €20 billion ($22.4 billion), corresponding to more than 150% of the target fund size.

#ICYMI: EIB boosts REPowerEU support package to €45 billion

The EIB’s Board of Directors has decided to raise the additional funds earmarked for projects aligned with REPowerEU – a plan designed to end Europe’s dependence on fossil-fuel imports – from the initial €30 billion ($33.5 billion) package announced in October 2022 to €45 billion ($50.2 billion).

The decision was made at the EIB Group’s July meeting in Luxembourg.

The new funding marks a fresh record for the Group, expanding its support to the build-up of manufacturing capacity for strategic net-zero technologies and products.

Projects eligible for financing include renewables, energy storage, grids and energy efficiency, as well as electric vehicle charging infrastructure – Read more.

Make sure to follow Smart Energy Finances for the latest in finance and investment news coming from the energy sector.

Cheers,
Yusuf Latief
Smart Energy International

Follow me on LinkedIn

Germany-based European Energy Exchange (EEX) has acquired Nasdaq’s European power trading and clearing business, subject to receipt of customary regulatory approvals.

The transaction to EEX will involve the transfer of existing open positions in Nasdaq Nordic, French and German power futures as well as European carbon emission allowance futures (EUAs) to EEX’s clearing house European Commodity Clearing (ECC).

No financial details of the deal have been disclosed.

Nasdaq Clearing AB, along with the clearing infrastructure to support it, is not part of the sale.

As part of the agreement with Nasdaq, EEX will update the current Nordic power market structure, replacing Electricity Price Area Differential (EPAD) contracts with zonal futures contracts.

Until the receipt of regulatory approvals, Nasdaq will continue to operate its European power trading and clearing business as usual.

Stated EEX on their website: “EEX is confident that overall liquidity in the Nordics can be improved by offering zonal futures, as the market will be accessible for a wide pool of pan-European power traders who can execute geographic trading strategies and capture cross-margining efficiencies. Nordic participants can also hedge using the existing Nordic System Price products offered by EEX.”

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Svenska’s EPADs

Responding to the announcement was Swedish TSO Svenska kraftnät, which has since February this year, they state, conducted auctioning of EPAD contracts corresponding to 10% of the Swedish grid’s capacity to transmit electricity between electricity price areas SE2, SE3 and SE4.

State the TSO: “The auctions are part of Svenska kraftnät’s pilot project, with the aim of supporting liquidity in the financial electricity market and [facilitating] the opportunities for market participants to hedge their production or consumption.”

The pilot, which runs in 2023 with a possible extension until 2024, can only auction EPAD contracts if they are traded on the financial electricity market.

One month prior – a Baltic acquisition

One month prior to the Nasdaq announcement, EEX Group acquired Gas exchange GET Baltic, which has become part of the Group.

The deal was signed between EEX and Lithuania’s gas TSO Amber Grid, under which EEX will take 66% of the shares in the regional gas exchange GET Baltic.

As a result, the gas exchange operating in the three Baltic countries and Finland will become part of EEX Group. Amber Grid will hold the remaining 34% of the shares and will continue to support the further development of the gas business in the dynamic Baltic Sea region.

The short-term and long-term contracts of GET Baltic will be offered under EEX’s German exchange license, making use of the EEX trading infrastructure- and clearing services provided by the ECC.

Once admitted at EEX, the GET Baltic Trading Participants will be able to trade not only the current spot and futures contracts but also other hubs and asset classes offered by EEX.

Said EEX CEO Peter Reitz: “We aim to create a harmonised European gas trading platform based on EEX’s trading infrastructure. The acquisition of the majority shares in GET Baltic extends EEX Group’s offering for the pan-European gas markets as well as our customer base. As a result, this creates new opportunities to increase liquidity in all gas markets operated by EEX and GET Baltic.”

GET Baltic is a significant market player in the region; in 2022, a volume of 7TWh of natural gas was traded on the GET Baltic exchange.

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A Floridian energy exchange

Other trading news was spotted across the sea in Florida.

A week after the EEX’s Nasdaq acquisition, and seperate from their Western Europe Expansion, the Southeast Energy Exchange Market (SEEM) initiated trading with four new Florida energy companies added to their roster, including Duke Energy Florida, JEA, Tampa Electric Company and Gainesville Regional Utilities.

The platform allows the US utility companies to buy and sell power through the SEEM platform., which launched operations supporting enhanced energy trading in November 2022. The initial announcement was made in October.

Duke Energy Florida, JEA and Tampa Electric Company have joined as members, whereas Gainesville Regional Utilities, will be a non-member participant.

Members have a seat on the SEEM Board and related committees and pay all operational, audit, administrative and legal expenses, which allows non-Members to participate in SEEM at no cost.

“Adding new Participants creates more opportunity for everyone in the market, enabling more matches,” said Nelson Peeler, SEEM board chair and senior vice president of transmission and fuels strategy and policy at Duke Energy.

“Expanding the SEEM footprint into Florida will also create more market diversity empowered by zero-cost transmission and further facilitate solar and renewables integration.”

During the first seven months of operation, there have been more than 45,000 transactions representing more than 1TW of power transacted across all participants including transactions in 73% of all hours since market launch.

The SEEM platform facilitates automated, sub-hourly trading, allowing participants to buy and sell power close to the time the energy is consumed, utilising available unreserved transmission.

The SEEM footprint includes 23 entities in parts of 12 US states with more than 180,000MWs during summer (winter capacity is nearly 200,000MWs) across two time zones.

For the latest finance and investment announcements coming from the energy industry, make sure to follow Smart Energy Finances Weekly.

Cheers,
Yusuf Latief
Content Producer
Smart Energy International

Follow me on LinkedIn

Also on the radar are an €8 billion credit facility for Dutch-German TSO TenneT, which is in the middle of potentially a full operations sale to the German government, and an equity financing round for tech startup 1KOMMA5°, which now boasts unicorn status.

Troubled waters for UK’s biggest water utility

UK ministers and water regulator Ofwat have started discussions about the possibility of placing Thames Water, the country’s largest water utility, into a special administration regime, according to Sky News reportage.

The talks, which involve the Department for Environment, Food and Rural Affairs (DEFRA), Ofwat and the Treasury, remain at a preliminary stage and relate at the moment only to contingency plans, which may not need to be activated.

Under the regime, Thames Water would be placed into temporary public ownership, parallel to the situation with Bulb Energy after collapsing. The electric utility has since been acquired by competitor Octopus Energy.

Earlier this week, Thames Water’s CEO Sarah Bentley announced her resignation with immediate effect, less than three years after starting in September 2020.

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Earlier this year, the utility reportedly hired investment bank Rothschild and international law firm Slaughter and May under pressure of managing a £14 billion ($17.7 billion) debt pile.

On Thursday, Ofwat released an official statement on the matter, claiming that although Thames Water has had significant issues to address, including its environmental record, leakage performance and financial resilience, their liquidity yet proves a strength.

“…that is all in the context of a company that has strong liquidity – [Thames Water]  recently received £500 million ($630 million) from shareholders and has £4.4 billion ($5.5 billion) of cash and committed funding,” stated an Ofwat spokesperson.

Thames Water serves 15 million customers in London and the Thames Valley.

TenneT’s pre-sale €8 billion credit facility

Dutch-German utility TenneT has announced signing of an €8 billion ($8.7 billion) credit facility, as it continues to mull over the sale of its operations to the German government.

The potential sale was announced earlier this year in February, at which stage the TSO’s financing needs approximated  €15 billion ($16 billion). State funding, they claimed, was being considered a prime structural solution.

TenneT currently operates the Dutch high voltage grid as well as part of the German high voltage grid, although they have stated that both the Dutch and German governments prefer to fund, control and own their national electricity grid.

In announcing the credit facility, the utility stated that “such [a] potential transaction would enable the creation of two strong national players, controlled and funded by their respective governments, and cooperating in driving the energy transition.”

The credit facility, which has a tenor of 2.5 years, is hailed by TenneT as one of the largest single tier ticket credit facilities in Europe since 2020.

The facility is provided by TenneT’s existing relationship banks, namely BNP Paribas (Bookrunner), ABN AMRO, BNG, Commerzbank, Deutsche Bank, ING, Rabobank, Santander, SMBC and UniCredit as mandated lead arranger.

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Tech startup raises €215 million; becomes unicorn

Hamburg-based tech startup 1KOMMA5°, after raising €215 million ($233.5 million) in equity, has reached €1 billion market valuation ($1.1 billion).

The funding round saw US tech investor G2VP as lead investor and a new shareholder for the newly-minted unicorn company.

The 23-month-old startup, which focuses on emobility, storage and solar solutions, stated the funds surpassed their goals of €150 million ($162.9 million) as they look to open a new R&D site in Berlin.

The company has been looking to expand its portfolio of smart solutions, namely an energy management and virtual power plant solution centred around Heartbeat, their energy IoT system.

Stated the company in a press release: “We have also set aside an additional €215 million euros in re-participation options, which can be paid as part of the purchase price for new acquisitions.

“This enables us to invest up to €430 million ($470 million) in total into the vertical integration of the value chain and double down on tech development around Heartbeat and our virtual power plant.”

The raised equity and unicorn status was announced at the same time as their acquisition of Danish solar tech provider Viasol.

With operations and employees in Germany, Sweden, Finland, Italy and Australia, the acquisition expanded their reach into a sixth market, Denmark, and enables the integration of Viasol’s frequency optimisation algorithm in Heartbeat, enabling dynamic tariffs and frequency regulation for Danish customers.

For the latest in finance and investment news coming out of the energy industry, make sure to follow Smart Energy Finances Weekly.

Cheers,
Yusuf Latief
Content Producer, Smart Energy International

Follow me on LinkedIn

Also on the radar are Ofgem’s calls to prospective investors looking to bid for £7 billion ($8.8 billion) worth of offshore transmission assets set to be auctioned off in two bidding rounds in 2024 and 2025.

And looking to focus on its regulated businesses, US energy giant Duke Energy has announced the sale of its unregulated utility-scale renewables business for $2.8 billion to strengthen its balance sheet and avoid additional holding company debt issuances.

Siemens Energy has fully acquired Siemens Gamesa

The announcement came earlier this week when Siemens Gamesa minority shareholders approved a capital reduction for the remaining 2.21% of shares not held by Siemens Energy, paving the way for full integration of both companies.

Upon completion of the transaction, Siemens Energy will have spent a total of €4.05 billion ($4.4 billion) to acquire all shares not previously owned.

Siemens Energy initially announced the bid to secure all remaining shares of Siemens Gamesa in May 2022, which concluded December the same year.

Following a sustained purchase order, Siemens Energy held 98% of shares, with this latest capital reduction bringing it to 100%.

“This is an important step in preparing for full integration. Besides, the turnaround programme at Siemens Gamesa, Mistral, needs further rigorous execution, even though we see first moves in the right direction,” said Christian Bruch, CEO and president of Siemens Energy and chairman of Siemens Gamesa.

The transaction has mostly been financed with equity.

With the integration, shareholders will receive compensation of €18.05 ($19.50) per Siemens Gamesa share, the same price that was offered in the original tender offer by Siemens Energy in 2022.

Siemens Gamesa ended the challenging fiscal year 2022 with what they called a “record backlog” and last month announced the divestment of wind tower manufacturer Windar Renovables.

Smart Energy Finances: Siemens Gamesa divests Windar

Ofgem calls to bidders for £7 billion in offshore transmission assets

Britain’s energy regulator Ofgem has put out a call to prospective investors looking to bid for £7 billion worth of offshore transmission assets.

Around 10 Offshore Transmission Owner (OFTO) assets, comprising prebuilt transmission connections for offshore wind farms, and providing guaranteed returns for 25 years subject to availability targets being met, will be going under the hammer.

The OFTO regime has operated for 11 years, having brought investment in for 24 assets, with more currently going through the process.

The regime ensures compliance with competition laws that mean the offshore wind farm developer may not own the associated transmission link once the wind farm is operational.

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Its design means that the windfarm developer can build the transmission connection to its own specification, with full control over timescales, then be repaid the cost of the asset when it is auctioned off. The developer can then recycle that capital into further developments.

According to Ofgem, the next two years will see a surge in OFTOs coming to market, reflective of the UK Government’s ambitious target of increasing offshore wind generation capacity fivefold to 50GW by 2030.

Bids will be assessed by Ofgem with offshore transmission licences granted to successful bidders, in a process that usually takes one to two years.

Duke Energy sells renewables business for $2.8 billion

Fortune 500 utility company Duke Energy has announced the sale of its unregulated utility-scale commercial renewables business to Brookfield Renewable, one of the world’s largest owners and operators of renewable power and climate transition assets.

The sale values approximately $2.8 billion, according to Duke Energy, and includes non-controlling tax equity interests and the assumption of debt.

Duke Energy’s expected net proceeds from this transaction are approximately $1.1 billion.

Duke Energy will utilise proceeds to strengthen its balance sheet and avoid additional holding company debt issuances.

This will allow the company to focus on the growth of its regulated businesses, including investments to enhance grid reliability and help incorporate over 30,000MW of regulated renewable energy into its system by 2035.

The agreement includes more than 3,400MW in alternating current of utility-scale solar, wind and battery storage across the US, net of joint venture partners ownership, in addition to operations, new project development and current projects under construction.

Primary operations of the business will remain in Charlotte, N.C.

The sale is expected to close by the end of 2023.

For the latest in finance and investment announcements coming out of the energy industry, make sure to follow Smart Energy Finances Weekly.

I will also be attending European Sustainable Energy Week (EUSEW) in Brussels next week from 20 to 22 June. Will I see you there?

Cheers,
Yusuf Latief,
Content Producer
Smart Energy International

Follow me on Linkedin

In Europe, two new bonds have been issued; a corporate bond of €206 million ($222 million) from Swissgrid to secure the electricity reserve for Winter and a €500 million ($538.7 million) green bond in the Netherlands to finance investments in the electricity grid.

Kraken’s US entry

The fast growing energy tech company, owned by Octopus Energy, has signed a strategic collaboration with TPS, which will see Kraken managing their customer battery sites in Texas. This will be the initial implementation for the newly signed partnership, which is hoped to expand across TPS’s US portfolio.

According to TPS, which forms part of Tenaska, one of the largest natural gas and electric power marketing companies in the US, the collaboration will enable them greater operational flexibility, enhanced grid stability and optimised customer revenue streams.

TPS’s portfolio includes over 23GW of solar, wind, energy storage and 10 carbon sequestration projects, capable of storing 50 million tons of CO2 per year.

Kraken touts its cloud-based platform as providing “end-to-end management of the whole energy supply chain”, they state in a joint-issued release announcing the partnership.

Have you read:
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The platform extends from flexible energy device management to customer billing and support and is offered to companies with the aim of unlocking “the full potential of their wind and solar farms or batteries by using advanced data analytics, AI and optimisation to maximize device usage, revenues and environmental benefit.”

Kraken is currently contracted to manage over 6GW across more than 45,000 green energy assets and is targeting the management of 200,000 assets and 10GW of energy capacity by the end of 2023.

Texas has long been aiming to fill a leadership position in the renewables scene; according to NPR, the state now produces the most wind power in the US and is forecast to soon tout the same for solar.

Earlier this year, Kraken owner Octopus Energy announced the creation of a Virtual Power Plant (VPP) in Texas alongside Enphase Energy, Inc., which will enable the energy major to bid their clean energy assets in the Electric Reliability Council of Texas (ERCOT) ancillary markets.

With the deal, Kraken’s platform is now active in 14 countries including the UK, the US, Japan, Australia and a large portion of mainland Europe.

Octopus Energy’s operations span 14 countries; the group invests in, builds and flexibly manages renewable energy, operating a £6 billion ($7.5 billion) portfolio of projects – one of Europe’s largest.

Webinar: How customer-centric SaaS will fuel the clean energy transition – Kraken

Grid and Winter reserves fuel European bonds

In the EU, two separate bonds – one corporate and one green – have been announced; €206 million ($222 million) from Swiss grid and €500 million ($538.7 million) in the Netherlands.

Switzerland

Swissgrid’s corporate bond, placed on the capital market, will see proceeds used to repay the utility’s current financial liabilities and finance ongoing investments, procurement costs and the costs of the electricity reserve for the Winter.

The bond was launched in the shorter maturity segment with a coupon rate of 1.90% and a term of three years.

The bond marks one of many from the Swiss TSO – the last launched in May last year – which has reported strong business performance from 2022, including upped investments by 23.4% and net income of €99.4 million ($107 million).

The bond will be listed on the SIX Swiss Exchange and included in the Swiss Bond Index.

This is one of the additional tasks that the federal government has assigned to Swissgrid to ensure the country’s security of supply, citing the modernisation of their transmission system as key to their net zero ambitions and Energy Strategy 2050.

A new five-year strategy period was initiated by Swissgrid at the beginning of the 2023 financial year, including measures to ensure Switzerland’s grid-related security of supply in the long term.

For its Strategy 2027, Swissgrid has added two new focuses, including innovation and digitalisation and Corporate, Social & Environmental Responsibility (CSER).

The majority of Swissgrid’s share capital is jointly held by various Swiss electricity companies.

Smart Energy Finances Weekly:
Eni’s €2.2bn share buyback programme and grid smartening for investments
EnBW sells quarter stake in TransnetBW

Netherlands

Electrical network operator Alliander’s €500 million green bond has been issued; the capital will be used to finance investments in the electricity grid.

The network company has already issued four green bonds publicly, now amounting to €2.2 billion ($2.4 billion).

The bond loan has a term of 5 years and a coupon interest of 3.25%.

It is the latest effort from Dutch grid operators to finance grid infrastructure to ease recurring bottlenecks.

Earlier this year in March, the country’s regional network operators published an investment scenario report under the flag of Netbeheer Nederland to elaborate on investment plans and strategies.

Alliander has set up a Green Finance Framework for issuing green bonds, under which the electric company can place other forms of sustainable financing, such as money market paper and private loans.

The new Green Bond will be listed on Euronext Amsterdam.

Alliander has also stated its intent to invest over €1.2 billion ($1.3 billion) per year in the coming years to make the energy system future-proof.

I will be attending European Sustainable Energy Week in Brussels from 20 to 22 June. Will I see you there?

Make sure to follow Smart Energy Finances for the latest in finance and investment announcements coming out of the energy industry.

Cheers,
Yusuf Latief
Content Producer
Smart Energy International

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Also on the radar are an AI-based data analytics platform’s entry into the Nordic market, offering asset optimisation of renewable energy assets onto the grid, aiming to open favourable market conditions.

And across the ocean, in the US, energy efficiency and flexibility have driven the acquisition of an energy storage system provider by a smart home and load management developer.

EnBW sells quarter stake in TransnetBW

Südwest Konsortium has acquired 24.95% share in German Transmission System Operator (TSO) TransnetBW, which operates the electricity transmission system in Baden-Württemberg, from energy company EnBW.

According to a joint press release by EnBW, Südwest and TransnetBW, the consortium bought the minority stake in the TSO after a multi-stage bidding process.

Südwest Konsortium consists of more than 30 savings banks, banks, insurance companies and corporations from Baden-Württemberg, led by insurance group SV SparkassenVersicherung.

With the support of LBBW Corporate Finance as a financial advisor, the investment held by the Südwest Konsortium members was managed by derigo GmbH & Co. KG, an investment management company with experience in the infrastructure sector.

Have you read:
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With the transaction, EnBW completes an important part of the partial sale process, which was officially announced in February 2022.

According to law firm White & Case, which oversaw the transaction, it was agreed in advance with state-owned KfW Bank that it would receive a right of first refusal on the second of the two minority shares offered.

Following the sale of the second tranche, EnBW will remain the majority shareholder with just over 50% of the shares.

TransnetBW and EnBW referenced the grid’s status in Germany as a key driver behind the sale:

“To achieve the German government’s climate targets by 2030, implementing the energy transition will require around €600 billion ($644.1 billion) in investment…€126 billion ($135.3 billion) of this will be accounted for by new power lines and power line modernisation alone.

“The Grid Development Plan 2035 (2021) identifies around €10 billion ($10.7 billion) in investment needed for TransnetBW alone, primarily for the major projects SuedLink and Ultranet. The future shareholders will meet TransnetBW’s financing needs in proportion to their holding.”

According to Reuters, which claims the sale valued €1.1 billion ($1.2 billion), with the sale EnBW’s stock rose 1.6%.

EnBW is one of the largest energy companies in Germany and Europe, supplying around 5.5 million customers with electricity, gas, water and services and products in the areas of infrastructure and energy.

From 2023 to 2025, the company is expecting to invest around €14 billion ($15 billion), mostly in the accelerated implementation of the energy transition.

AI data analytics platform for grid assets enters Nordic market

Trailstone Group, a US-based energy and technology company, has announced its entry into the Norway, Sweden, Denmark and Finland markets.

The company offers renewable energy risk management, asset optimisation and trading services and for the last 10 years has provided similar services for over 18GW renewable energy assets across the EU, UK and US, and recently began offering similar services in Japan.

According to the company, a major driver of the decision to expand into the Nordic market is the number of market reforms that will be implemented in 2023 and 2024 to support the continued development of renewables and more closely integrate the Nord Pool with European power markets.

Expected reforms include flow-based market coupling, the introduction of flexibility markets and the shift to 15-minute resolution in intraday markets.

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Ante Pogacic, global head of power and renewables at Trailstone said: “Renewable asset owners and developers selling power into Nord Pool need solutions such as our AI-enabled optimisation platform to manage increasing market complexity and we’re excited to extend our services and experience.”

Trailstone’s optimisation platform uses weather models, data analytics and AI to better predict renewable energy supply and optimise returns for asset owners.

The company’s risk management and trading teams use the platform to manage imbalances caused by weather related production risks, lowering the barriers to entry for asset developers and enabling the deployment of more wind and solar generation.

At the grid level, the company cites the use of the platform in improving the effectiveness and efficiency with which renewables are managed and assets can connect to the grid, lowering reserve requirements and costs.

Savant Systems acquires POMCube

In the US, Savant Systems, Inc., smart home and flexible load management system developer, announced that it has acquired POMCube, Inc., which deploys energy storage systems.

For nearly 10 years, POMCube has been developing and deploying energy storage systems that aim to help facilitate the use of clean energy alongside battery backup in homes and commercial locations throughout North America and Asia.

Moving forward, POMCube will function under the Savant brand and management.

With the acquisition, Savant will enhance its current power system with its newly acquired technology.

According to Savant, their software platform allows for easy monitoring, control and automation of circuits, improving efficiency, both in terms of energy stored and cost.

The complete Savant Power System and components are eligible for tax credits in the US, as well as other government subsidies via the Inflation Reduction Act (IRA).

Savant is currently investigating opportunities under current government programmes to manufacture inverters and backup batteries domestically within the US.

For the latest in finance and investment announcements coming out of the energy industry, make sure to follow Smart Energy Finances Weekly.

I will also be attending European Sustainable Energy Week in Brussels from 20 to 22 June. Will I see you there?

Cheers,
Yusuf Latief
Content Producer, Smart Energy International

Follow me on LinkedIn

Eni’s €2.2 billion share buyback

Rome-based energy company Eni has announced the first tranche of a share buyback programme, totalling €2.2 billion ($2.4 billion).

The First Tranche will concern up to a maximum of 62 million of Eni’s shares (approximately 2% of share capital), up to a total maximum of €1 billion ($1.1 billion) and to set up a share portfolio to serve extraordinary financial transactions, as for example convertible bond issues.

The purchases will be executed on the Euronext Milan through an authorised agent, who will act independently.

The share buyback will be executed over a period of 12 months and may be increased to a total maximum of €3.5 billion ($3.8 billion), in case of upside scenarios.

Therefore, after the First Tranche, a further phase of purchases will be launched to complete the overall planned buyback program.

Have you read:
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Series B for utility-driven robotics

ANYbotics, a Swiss robotics developer, has announced a $50 million Series B funding round led by international deep tech investors Walden Catalyst and NGP Capital with participation from Bessemer Venture Partners, Aramco Ventures, Swisscom Ventures, Swisscanto Private Equity alongside other existing investors.

The investment comes as demand for robotic solutions surges in heavy industries such as utilities, as well as oil & gas, chemicals, power, mining and metals & minerals.

Faced with an ageing workforce and labour shortages, these industries increasingly rely on innovative robotics solutions to streamline operations, reduce environmental impact and increase worker safety.

The funds will be used to scale the company’s deployments internationally, fuel the development of new capabilities, and enhance its position in robotic inspection solutions.

According to ANYbotics, their ANYmal robot platform returns value in operational deployment and is used by market leaders such as PETRONAS, Shell, SLB, Outokumpu, Siemens Energy, BASF and Vale.

“This funding validates our unique approach to addressing fundamental challenges of operating complex industrial facilities,” said Péter Fankhauser, ANYbotics co-founder and CEO. “Our legged robots have already proven their value in increasing productivity and safety.

“With this investment, we will expand internationally and accelerate the development of our robots’ AI capabilities such as manipulation for maintenance work to revolutionize automated industrial operations.”

‘Smartening’ the grid is driving investments

KPMG’s report, Smarter Grids: Powering decarbonisation through technology investment, examines the policies that support smart grids’ implementation and the investments incentivised by these enabling policies.

Wei Lin, partner and head of ESG for KPMG China, commented on the report’s findings: “Energy independence and the need to decarbonise the economy by progressively moving away from fossil fuels reliance is a key policy and business opportunity driver.

“Many countries not only have strategic roadmaps for expanding renewable energy generation, but they are also charting pathways for alternate energy options including green hydrogen and energy storage. These changes have contributed to the renewed urgency to strengthen the electricity grid.”

Ebele Angela Onyeabo, associate director of climate and sustainability at KPMG China, added how “sustainable finance is increasingly targeting the clean technologies of the future.

“Banks, asset managers, institutional investors, utilities and corporates are in many ways exploring opportunities for decarbonising their portfolio as well as their processes. Investing in and integrating smart grids technology offers a clear path to substantial carbon reduction critical to energy transition.”

Also of interest:
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EV sales remain in top gear with China in the driving seat

China’s vertically integrated market

The report looks at the cases of the UK, US and, of particular interest, China.

Reliable electricity, states KPMG China – a subsidiary of the global consulting firm – is critical to economic growth in the country, which generated over 8,500TWh of electricity last year, accounting for one-third of global output.

State-Owned Enterprises (SOEs) dominate the investment landscape.

Specifically, the SGCC (State Grid Corporation of China) – the country’s biggest market player and the largest electric utility company in the world – has been upping investments into electricity networks and transmission lines over the years, upscaling smart grid compliant UHVDC (Ultra High Voltage Direct Current) and flexible AC transmission lines.

They have also focused on advancements in distribution smart grid infrastructure to foster demand side management and drive uptake in electric vehicle, vehicle to grid and smart metering technology.

Through such investment, the report puts forth how ‘smartening’ the grid has benefited from access to green finance in China, which has resulted in greater access to green bonds and other financial tools, which the report states are critical for enabling the country to achieve its carbon neutrality goals through energy efficiency.

Increasing interconnection between domestic and international policies, they state, has also sped up growth of a “transparent, standardised green bond market, enabling key players to attract private investment through various financing tools.”

Variability within the country’s vertically integrated market, they add in the report, allows for the inflow of private investments to support smart grid development.

Additionally, according to KPMG’s 2022 CEO Outlook, based on a survey of over 1,300 global CEOs, long-term digital transformation and ESG make up two of the top four trends impacting businesses globally.

Smart grids, they state, straddle these two issues in a way that impacts stakeholders across sectors.

For the latest in finance and investments announcements coming out of the energy industry, make sure to follow Smart Energy Finances, our weekly column.

I will also be attending European Sustainable Energy week (EUSEW) from 20 to 23 June in Brussels, Belgium. Will I see you there?

Cheers,
Yusuf Latief
Content Producer, Smart Energy International

Follow me on LinkedIn

Italian gas DSO Italgas has announced positive Q1 results, dated 31 March 2023, stating their recent acquisition of a Greek gas distribution company and a digital push as driving their growth.

The company announced 18.9% growth in their EBITDA, up to €297.2 million ($326.8 million).

The growth is attributed to the company’s investments over the first three months of 2023, including €175.1 million ($192.6 million) for the extension, digital transformation and repurposing of their networks. Specifically, 213km of new pipelines were laid in the first quarter of 2023.

Late last year Italgas completed the acquisition of Greek gas DSO Depa Infrastructure S.A., pushing them further into a leading role in the Greek gas distribution market and signalling their return to the international market.

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The company, during a shareholders meeting last month, acknowledged the acquisition of Depa and their digital transformation as key indicators of their growth strategy.

Benedetta Navarra, Italgas chairwoman, commented in a press release, “Digitisation, technological innovation, circular economy, training, diversity and inclusion continue to be the cornerstones of our actions at the disposal of communities and territories”.

Paolo Gallo, the company’s CEO, added: “Alongside decarbonisation targets it is crucial to ensure security of supply and industry competitiveness. An approach that we are also promoting in Greece, since the last months of last year marked the Group’s return abroad with the acquisition of Depa Infrastructure, the country’s main gas distribution player.”

According to the company’s Q1 financial results, all economic indicators showed double-digit growth, with Group Net Profit exceeding €100 million ($110 million), up 16.5% compared to the first quarter of last year, thanks also to the contribution of their activities in Greece.

Market snapshot: Smart electric meters to reach $6.9 billion by 2028

According to research released by ResearchAndMarkets, the global smart electric meter market is forecast to grow at a rate of 1.6% CAGR between now and 2028 to reach $6.9 billion, up from 2022’s $6.2 billion.

Key drivers, according to the research, include:

• Increasing adoption of energy efficient technologies and rising investments for replacement of traditional systems with IoT-based metering tech
• Increasing subsidies and incentives provided by governments globally to boost the integration of grid infrastructure with smart electric systems
• Increasing advancements in microgrid networks and expansion of distributed generation technology
• Rising consumption of power across residential establishments such as multi-storey buildings and apartments coupled with the expansion of the commercial sector; these accompany rising utilisation of energy efficient services and products

SP Energy Networks launches 11-month 273MW flexibility tender

SP Energy Networks has launched its spring Flexibility Tender in a search for providers to supply flexibility services across 571 locations identified within its distribution network licence areas.

The UK distribution and transmission network operator, is seeking to procure 273MW of flexibility for an 18-month period from November 2023 to October 2025.

Flexibility providers can apply via the Piclo Flex Platform; pre-qualification period is open and will run until Friday 14 July 2023. The bidding competition will then open on Monday 17 July and close on Friday 21 July 2023.

This new tender will allow for additional flexibility across areas where it has been identified that demand for electricity will increase due to low carbon tech adoption, including electric vehicles and heat pumps, which can often lead to network constraints during busy periods.

Also of interest:
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Record clean energy investment in 2022 still falls short – report

Neoenergia sells 50% equity across eight transmission assets

In a deal valuing BRL1.2 billion ($240 million), Iberdrola’s subsidiary has entered an agreement with GIC, a global institutional investor, to sell 50% equity across eight power transmission assets in operation.

These include Jalapão, Santa Luzia, Dourados, Atibaia, Biguaçu, Sobral, Narandiba and Rio Formoso, which consist of 1,865km of transmission lines.

The purchase price is subject to customary price adjustments. A transmission holding company will be formed to hold the operational assets.

GIC will also have a right of first offer in connection with the potential future sale of 50% of equity interest in the power transmission assets under construction by Neoenergia – Itabapoana, Guanabara, Vale do Itajaí, Lagoa dos Patos, Morro do Chapéu, Estreito, Alto do Parnaíba and Paraíso – which cover 6,089km of lines. The same rights shall also apply to Potiguar Sul, totalling 6,279km of lines.

The eight operational assets have Annual Permitted Revenues (RAP) of approximately BRL430 million ($86 million) and an average concession term of 25 years.

Following closing of the transaction, Neoenergia will continue to provide operation and maintenance services, as well as other corporate services to the operational assets.

ABB divests

Tech developer ABB has completed divestment of its UK technical engineering consultancy business, part of its Energy Industries division, to TÜV Rheinland, following a strategic portfolio review.

The financial terms of the transaction have not been disclosed.

According to ABB, the business complements TÜV Rheinland’s existing risk, safety and integrity management services and has been integrated into the Industrial Services and Cybersecurity business of TÜV Rheinland in the UK.

ABB’s UK technical engineering consultancy, including a network of subcontractors and associates, has around 160 people operating from two main sites in northeast and northwest England.

A specialist team of technical experts helps global energy customers improve process safety, equipment and asset integrity as well as technical design for new and existing industrial plants.

The combined business is expected to create a scalable, broad-based technical engineering provider delivering a full-service offer to the high hazard industries, supporting customers in the energy transition and with energy security.

The initial announcement of the acquisition came from TÜV Rheinland earlier this year in January, the same month ABB completed divestment of its power conversion unit to AcBel Polytech.

For the latest in finance and investments announcements coming out of the energy industry, make sure to follow Smart Energy Finances, our weekly column.

Cheers,
Yusuf Latief
Content Producer, Smart Energy International

Follow me on LinkedIn

UrbanChain

The creator of a unique energy market for renewables has announced a turnover pipeline of £22 million ($27.5 million) for the next 12 months.

UrbanChain runs a Peer-to-Peer (P2P) energy exchange which enables consumers to place an exact order for electricity and for generators to meet that order.

The energy tech company’s turnover is set to grow beyond £22 million, they state, with 1TWh of renewable energy generation now available in the P2P energy exchange.

Already a part of its P2P energy exchange are generators of renewable energy, private companies from multiple sectors, local authorities, social housing associations, manufacturers, energy suppliers and households.

UrbanChain CEO Dr. Somayeh Taheri said: “Such is my belief in UrbanChain that I plan to do an IPO (Initial Public Offering) within the next five years. Having 1TW of renewable energy generation from solar, hydro and wind in the pipeline is no small matter and we won’t stop here.

“The energy market has for too long been broken in the UK and we are changing this by enabling a clearer pathway toward reaching net zero greenhouse gas emissions by 2050.”

According to UrbanChain, their P2P energy exchange is the only trading platform for renewable energy in the UK. Through its AI and blockchain technology UrbanChain profiles consumption behaviours and production patterns in the hopes of securing the best match between consumers and renewable energy generators.

Once part of the peer-to-peer energy exchange, consumers buy renewable, local green energy and save up to 50% on energy bills.

Renewable energy generators have no need to sell to intermediaries and intermediaries don’t then sell to the wholesale market. The result for generators of renewable energy is at least 25% better margins, states the company, and more money earned in the medium to long term.

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Switchd

Also in the UK, Turquoise, a UK merchant bank specialising in climate tech investments, has announced an investment by Low Carbon Innovation Fund 2 (LCIF2) in Switchd as part of a capital raising round of over £1.2 million ($1.5 million) from a group of existing and new investors.

Switchd offers a subscription-based, automated retail energy tariff switching service as well as MakeMyHouseGreen, a digital platform assisting residential homeowners to install renewable energy and energy efficiency products.

Ian Thomas, managing director at Turquoise, commented: “LCIF2 is pleased to make a further investment in Switchd. The company is achieving rapid rates of growth as homeowners seek to reduce both energy bills and carbon emissions.”

Llewellyn Kinch, co-founder of Switchd, added: “This funding round will allow us to expand our team and accelerate growth across the business. We are pleased with the appetite of our existing shareholders, including LCIF2, and new investors to participate in the capital raise.”

LCIF2 is funded by the European Regional Development Fund, with the UK’s Department for Levelling Up, Housing and Communities as the Managing Authority.

50Hertz

Eurogrid, parent company of German transmission system operator 50Hertz, has raised additional liquidity on the capital market for investments in the power grid infrastructure.

The electric utility investor has successfully placed a bond worth €650 million ($715 million) with a term of seven years (2023 – 2030) at an interest rate of 3.722%. It will also be used to service a bond due in November 2023.

Marco Nix, 50Hertz chief financial officer commented: “Following the green loan of 600 million euros that we took up a few weeks ago through a KfW program, we are now securing further funds for our investment activities.

“The solid demand shows – despite a regulatory framework that now no longer matches the general interest rate development – a continuing trust of investors in the future viability of 50Hertz. We have to work on a sustainable financing framework together with politicians and regulators.”

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BESS market boom

According to research from Aurora Energy, battery storage markets across the European continent will attract over €70 billion ($77 billion) in investment between now and 2050.

The vital role that batteries can play in the European power sector’s decarbonisation is set to drive a surge in installations over the next few decades — installed grid-scale capacity will rise to 42GW by 2030, and at least 95GW by 2050, compared to the 5GW installed across the continent today.

This is according to Aurora Energy Research’s latest European Battery Markets Attractiveness Report, released last week.

These capacity additions represent a cumulative investment opportunity of over €70 billion between 2023 and 2050. Over 40% of this capital will be deployed by the end of 2030, Aurora calculates.

According to their findings and modellings, the average battery duration will increase over time, due to growing demand for longer storage as renewable power generation increases. Batteries with over four hours’ storage capacity will account for 61% of total installed battery capacity in 2050, compared with 22% in 2025.

Read the full story

For the latest in finance and investments announcements coming out of the energy industry, make sure to follow Smart Energy Finances, our weekly column.

Cheers,
Yusuf Latief
Content Producer, Smart Energy International

Follow me on LinkedIn

Also on the radar are announcements from the Asian Development Bank and the Global Energy Alliance for People and Planet of a new fund, aiming to drive clean energy projects in South and Southeast Asia.

Finally, in a partnership to develop hydrogen hubs and drive down green hydrogen costs, three utilities in the UK, alongside Guidehouse and Pembrokeshire County Council, are partnering on a feasibility study that will involve revenue stacking and financial optimistion of electrolysers.

Fulcrum exits smart metering market

UK utility services provider Fulcrum has decided to exit the smart metering market.

The announcement was made in the company’s trading announcement for the financial year ending 31 March 2023.

According to Fulcrum, the smart metering market is no longer considered to be an attractive opportunity or area of the market for the Group to operate in because the market would ‘hold little area of operational opportunities’. They highlight that since the company’s fundraise in December 2021, the UK energy market has experienced ‘significant volatility’, which informed their decision.

The exit is being looked at as opening new space to investigate “more attractive opportunities”.

Fulcrum’s announcement comes in as the smart meter suppliers in the UK have come under fire for reportedly forced prepayment meter installations and not meeting smart meter rollout targets.

This led to a warning being issued by the Ofgem CEO after the regulator banned forced installations for highest risk customers.

Have you read:
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Badger Meter reports robust demand environment

On the other side of the pond, the demand environment for metering is quite strong, at least according to Q1 reporting from flow metering provider Badger Meter.

The US-based company, which develops flow measurement, water quality and control products for water utilities and municipalities announced strong orders and results in their First Quarter 2023 Highlights, released yesterday.

The company reported “robust demand environment continued with strong order” – $159.1 million in total sales, up 20% than the prior year, operating profit increases of 30% year-on-year and record backlog despite all-time high sales performance in the quarter.

Kenneth C. Brookhorst, the company’s chairman, president and CEO, commented on these record financial results and how it signals the “favourable industry fundamentals, healthy demand for our innovative smart water solutions, and outstanding execution…”

The release of the results follows the company’s acquisition of Syrinix in their Q1, which provides intelligent water monitoring solutions – such as high-frequency pressure monitoring and leak detection within water distribution and collection networks – for $18.3 million.

The company’s utility water sales increased 20% year-over-year, claiming robust adoption of their cellular AMI solution. The acquisition of Syrinix, they state, contributed significantly to the year-over-year sales increase.

Added Bockhorst: “Our expanding portfolio of end-to-end smart water offerings…and our stellar balance sheet supports our capital allocation priorities including value-added, disciplined acquisitions.

“Healthy demand for these innovative and trusted offerings…give us confidence in our long-term growth outlook as we help to preserve the world’s most precious resource.”

More from Smart Energy Finances:
SMS points to smart metering and storage portfolios for profit gains
$60bn global revenue from smart meter deployment by 2027

Catalytic capital for Asian clean energy projects

The Asian Development Bank (ADP) and the Global Energy Alliance for People and Planet (GEAPP) have announced a new capital fund for clean energy projects in South and Southeast Asia. Eligible project countries include India, Indonesia, Vietnam, Pakistan and Bangladesh.

The fund was announced during the World Bank Spring meetings and sees GEAPP provide an initial $35 million in what they are calling catalytic capital, which will be established and administered by ADB.

The fund aims to address the challenges of climate change and energy access and transition in Asia and beyond.

Priority programmes will include supporting Battery Energy Storage System (BESS) in Vietnam, and the early retirement of coal-fired power plant initiatives in Indonesia.

Opportunities will be supported through technical assistance, grant components for investment projects, and blended concessional instruments to crowd-in additional capital.

“There are great opportunities to open up clean energy access and transition while addressing climate change yet in 2021 just 8% of financing for energy transition technologies went to low- and middle- income countries (LMICs) – that’s the lowest share in 10 years,” said Simon Harford, GEAPP’s chief executive officer.

Harford added how the partnership with ADB is aimed at meeting critical climate goals through new and additional capital that will be “mobilised at a ratio of at least 15x at portfolio level to encourage the use of clean energy in the region, underpinned by practical innovation, scalable solutions, and knowledge sharing.”

The new fund was formalised at a signing ceremony in Washington DC attended by ADB’s managing director, general Woochong Um; GEAPP’s chief executive officer, Simon Harford; and GEAPP chief partnerships officer, Sundaa Bridgett-Jones.

#ICYMI: Revenue stacking and financial optimisation of electrolysers

In an effort both to decarbonise heat and transportation as well as to reduce gas and electricity network operating costs, three utilities in the UK have partnered with Guidehouse and Pembrokeshire County Council.

Specifically, Wales & West Utilities, National Grid Electricity Distribution and RWE are partnering on a feasibility project to investigate opportunities for co-locating electrolytic hydrogen refuelling stations with heat demand.

The aim of the partnership is to establish hydrogen hubs and determine whether hybrid hydrogen and district heating systems can support the decarbonisation of transport and heat at the lowest cost for customers and the network.

Part of the partnership will see the stakeholders explore revenue stacking which, according to Revenue stacking for behind the meter battery storage in energy and ancillary services markets, entails participating in multiple markets to increase revenue.

They will also explore financial optimisation of the electrolysers, integrating the response to multiple energy demands and facilitating efficient infrastructure provision.

Read the full story

For the latest in finance and investments announcements coming out of the energy industry, make sure to follow Smart Energy Finances, our weekly column.

Cheers,
Yusuf Latief
Content Producer, Smart Energy International

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Also on the radar is Enel’s consideration of a storage sale to alleviate its net debt, a smart metering tender in Uruguay and closure of a major smart metering deal by Queensland Investment Corporation (QIC).

UK Infrastructure Bank’s storage fund investments

Energy services and solutions company Centrica and British state-owned UK Infrastructure Bank are investing £265 million ($329.8 million) in energy storage in the UK, marking the bank’s first investment into such technology.

The Bank will invest £75 million ($93 million) on a match funding basis into the Gresham House Secure Income Renewable Energy & Storage LP (SIRES) alongside a £65 million ($80.9 million) investment from Centrica.

These investments are alongside a stated commitment from UK infrastructure Bank to invest £125 million ($155.6 million) on a match-funding basis into Equitix UK Electricity Storage Fund.

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Project breakdown of the funding includes:

• Supporting launch of the SIRES fund, which will focus on developing the collocation of renewable generation and short duration electricity storage facilities to help maximise grid connections.
  
  Centrica will be a cornerstone investor, marking the first time the business has invested in such a fund.
  
  The £65 million investment will be used to fund the construction of the seed asset, a collocated solar and battery energy storage project in Hartlepool, County Durham, with 50 MWp solar capacity and 75MWh of battery energy storage.
  
  Centrica’s Energy Marketing & Trading business will seek to provide a route-to-market for the assets in the fund once they become operational.
  
• Supporting launch of the Equitix UK Electricity Storage Fund through the Bank’s committed £125 million investment.
  
  The fund will focus on a combination of innovative business models across both short and long duration storage.
  
  The Bank has cited its infrastructure specialist asset management experience and asset portfolio across the UK electricity value-chain as providing them with the necessary insights for these types of investments.

The deals, which represent the Bank’s first investments in the electricity storage sector, are hoped to unlock a further £200 million ($248.9 million) in match-funded private sector capital.

John Flint, CEO of UK Infrastructure Bank said: “The Bank’s investment into these new funds will help break down the barriers to greater, long-term investment across a range of storage sector and renewable energy opportunities.”

According to the International Trade Administration, more than 16.1GW of battery storage capacity is operating, under construction or in the pipeline across 729 projects in the UK.

The technology is considered high priority for the UK Government and a key component of their push towards a net zero carbon economy.  

Enel mulls storage sale

Enel SpA is evaluating the sale of a majority stake in its energy storage business, claims Bloomberg reportage, in a move aimed at further reducing the company’s debt burden.

Italy’s biggest utility has received non-binding bids for an 80% stake in the project, valued at around €2 billion ($2.17 billion), according to the publication’s sources. Under the plan, Enel would look to retain around 20% to secure governance at the unit.

Should a deal go through, it will mark the latest from the Rome-based energy major in an attempt to alleviate their consolidated debt.

Earlier this year, the Group sold their stakes in Romanian operations to Greece’s PCC. Late last year they sold 50% of their stakes in Gridspertise. Both transactions were hoped to mitigate their net debt which, as of March this year, values approximately €1.7 billion ($1.8 billion).

This latest consideration, states Bloomberg, sees Enel working with advisers for the sale of the storage unit, which is attracting interest from infrastructure funds.

The project uses industrial-scale batteries used to store energy created from renewable sources that will eventually be inserted into the national electric grid.

Also of interest:
Gridspertise CEO highlights digital leapfrog opportunities for European DSOs
Energy Transitions Podcast: Europe’s urgent need for flexible balancing power

Uruguay smart meter tender

As Uruguay state-owned utility UTE (National Administration of Power Plants and Electrical Transmissions) continues a strategic drive to replace residential meters with smart meters, the country’s government has announced a smart meter tender.

According to bnamericas, the tender sees officials seeking 180,000 single phase and 20,000 three-phase smart meters alongside the necessary software and components, consulting-training and maintenance services.

The tender was announced in the same span as UTE announced landmark installation of one million residential smart meters, part of their plan to install smart meters in all homes across the country by 2024.

Commemorating the millionth installation, UTE president Silvia Emaldi stated: “These devices and the technical infrastructure to manage remotely allow us to provide a better service and a reduction in costs for UTE, which is shared with customers.”

Emaldi added how, as of July 5, the smart metering programme will be extended to SMEs. Bids for the tender are due May 5.

#ICYMI: Australia’s QIC closes Vector Metering ahead of schedule

Australian state-owned QIC (Queensland Investment Corporation) has reached contractual close for its joint venture deal with Vector Limited’s New Zealand and Australian smart metering business – Vector Metering – touted as the largest smart meter provider of its kind across Australia and New Zealand.

The acquisition, initially required to be closed by June of this year, remains subject to regulatory approvals and follows Vector’s announcement in December 2022 of QIC as its preferred joint venture partner.

The deal consists of a sale by Vector of a 50% interest in Vector Metering to a new fund and co-investors managed by QIC Infrastructure. The investment is the first asset for this new QIC Infrastructure fund.

Vector Metering owns and manages over 2.3 million meters across the electricity and gas markets in Australia and New Zealand.

Read the full story

For the latest in finance and investments announcements coming out of the energy industry, make sure to follow Smart Energy Finances, our weekly column.

Cheers,
Yusuf Latief
Content Producer, Smart Energy International

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Also on the radar are an energy data analytics partnership for market insights, a strategic partnership to generate revenue streams for V2G fleet operators and a renewables real estate investment strategy.

Smart meter deployment revenues up 44%

A new study from Juniper Research, which provides insights into the sustainable technology market, found that hardware, connectivity and service revenue from smart meter deploymens will exceed $60 billion in 2027; up from $41 billion in 2023.

According to the research, Smart Grid: Key Opportunities, Challenges & Market Forecasts 2022-2027, this 44% growth reflects how smart meters are becoming critical to increasing the efficiency of energy grids via analytics; central to lowering costs to customers during the energy price crisis.

The research finds that Italy, which has had mandatory smart meter installations since 2006, leads globally in smart meter deployment. By 2027, the research forecasts that the country will have the highest household penetration rate of smart meters globally, at almost 100%.

The top five countries were ranked as follows:

1. Italy (99.6%)
2. UK (98.7%)
3. Saudi Arabia (98.4%)
4. Hong Kong (98.4%)
5. UAE (97.4%)

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The research recommends utility companies focus on educating consumers on the benefits of smart metering, as these benefits are often unclear to them. Utility companies should focus on the potential for saving energy, with evidence-based use cases to catalyse adoption.

It also found that, with over 1.8 billion smart meter connections forecast to be in use by 2027 globally, smart meter connectivity represents an important opportunity for cellular networks and low-power IoT connectivity.

It states that low data usage of smart meters lends itself naturally to low-power IoT, but as cellular networks are the only networks capable of providing ubiquitous access in some markets, they clearly still have a role.

Report co-author Nick Maynard explained: “While smart meters have come a long way in deployment terms, they are only as good as the connectivity they leverage. Utility companies must aim to aggregate the best networks for their locations, or they will fail to obtain the benefits smart meters can readily provide.”

V2G revenue opportunities

Synop and BorgWarner are partnering up on revenue-generating opportunities for Electric Vehicle (EV) fleets using Vehicle to Grid (V2G) tech.

Partners Synop, a commercial EV fleet charging and energy management platform, and automotive suppliers BorgWarner are hoping to provide monetisation opportunities for fleet operators by lowering the overall costs of fleet ownership.

The two companies will supply hardware and software solutions, and establish V2G testing and compatibility best practices, aiming to enhance V2G tech while supporting utilities and the grid.

Further to this, the partnership will help resolve traditional challenges for EV fleets – such as system uptime, resilience to price volatility and charging mixed fleets.

The partnership follows utility programmes both companies jointly participated in, through which – touts both – commercial fleets were able to make back a maximum of $12,000 per commercial vehicle by selling energy to power the grid.

The announcement of the partnership follows an acquisition for BorgWarner of Hubei Surpass Sun Electric’s (SSE’s) Electric Vehicle Charging Solution, Smart Grid and Smart Energy businesses, which the company touts as an important move for their electrification business in Asia as it is expected to complement their existing charging footprint in Europe and North America.

A strategic data analytics partnership

Energy Aspects (EA) and Vortexa have announced a strategic partnership to combine energy commodity data and intelligence with cargo tracking analytics to provide energy markets with insights into short-term market dynamics.

Under the partnership, EA will use Vortexa’s cargo tracking analytics as an input to its research and analysis on global crude, refined products and LNG markets.

The partnership aims to bring increased clarity to risk-based energy markets.

Fredrik Fosse, chief executive at Energy Aspects, stated that their analytics will be well combined with EA’s data, allowing them to “benchmark and complement primary data sources with those of the leading third-party providers.”

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The six countries that win the most EU funding for energy projects

Headquartered in London, UK, with global offices, Energy Aspects was founded in 2012 by energy industry experts Dr. Amrita Sen, Fredrik Fosse, and Richard Bronze to meet the need for research into energy market and macro fundamentals, grounded on big data and forecasts.

Vortexa provides real-time data and advanced analytics for energy and freight markets, covering crude oil, refined products, LPG and LNG, across vessel classes.

Real estate investment strategies for renewable assets

Accelerate Investment Partners and CBRE Investment Management (IM) launched Accelerate Infrastructure Opportunities, a strategy to invest in digital and renewable real property interests across North America.

CBRE is a global real assets investment management firm, while Accelerate acquires, owns and manages investments in ground leases and land under critical infrastructure assets that generate long-term, sustainable cash flow.

This includes renewable assets – such as wind, solar, storage and EV charging projects – as well as cellular infrastructure and billboards.

Robert Shaw, managing director, private infrastructure at CBRE IM, stated: “Accelerate’s long-term partnership focus on acquiring real property interests under renewable and digital infrastructure projects provides an innovative way to deploy capital in the infrastructure 2.0 assets that we believe will thrive in the new digital, green economy.”

Energy Transitions Podcast: Europe’s urgent need for flexible balancing power

Announcement of the partnership and strategy came on the same day as Fortune named CBRE ‘One of America’s Most Innovative Companies’, marking CBRE the only commercial real estate services company to receive such a recognition.

Accelerate’s management team leading the strategy includes Brennan Potts, founder and CEO of Accelerate, Brandon O’Gara (managing partner and chief financial officer), Graeme Kavanagh (partner and chief revenue officer), Josh Castillo (partner and chief investment officer, infrastructure) and Brenda Hurst (partner and chief operating officer).

For the latest finance and investment announcements coming out of the energy industry, make sure to follow Smart Energy Finances Weekly, our finance column.

Cheers,
Yusuf Latief,
Content Producer, Smart Energy International

Follow me on LinkedIn

Also on this week’s finance radar are Accenture’s acquisition of Flutura, an India-based AI company, ABB’s investment in a direct current microgrid startup and Trane Technologies’ Series B investment into a company’s liquid cooling solution, aiming to bolster water cooling efficiencies for data centres.

SMS: smart metering and storage portfolios for profit gains

Scottish-based smart metering company SMS last week declared financial results for the year ended 31 December 2022.

According to the company’s statutory performance measures, announced last week in their annual results, SMS saw a 92% increase in profit before tax.

Specifically, their profit before tax at the end of 2022 was £16 million ($19.6 million), up from £8.3 million ($10.2 million) the year before.

The company, which installs and manages smart meters, energy data, grid-scale battery storage and other carbon reduction (CaRe) assets, has stated its smart metering and grid-scale battery portfolios as prime areas of growth.

Say Tim Mortlock, SMS chief executive officer: “The strong momentum in our meter and grid-scale batteries businesses provides us with confidence in our 2023 and longer term outlook – we will continue to deliver on our sustainable promises.”

Specifically, SMS stated confidence in their medium-term outlook, an expected progressive improvement in 2023’s smart meter installations and a hopeful pipeline expansion into other CaRe assets.

Over the course of 2022, SMS increased its smart metering portfolio by approximately 480,000 installations; up from 1.7 million in 2021 to 2.2 million in 2022.

Revenue generated from meter rental and data contracts, including those from 3rd party-managed meters, was up 13% at £97.1 million ($114 million) from £85.9 million ($105.2 million) in 2021.

From a strategic standpoint, the Group made investments in EV software company Clenergy EV and n3rgy Data, which provides digital services and data analysis – in the hopes of accelerating their capabilities in Electric Vehicle (EV) charging infrastructure and energy data management.

They have stated commitment to developing a commercial asset base for behind-the-meter tech, such as solar and storage, domestic EV chargers and air sourced heat pumps, seeing long term market opportunities for each.

Smart Energy Finances: SMS smart meters lift dividends and €15.1bn EIB green financing

ABB invests in a DC microgrid startup

Automation company ABB is entering a strategic partnership with Direct Energy Partners (DEP), a start-up using digital technology to accelerate adoption of Direct Current (DC) microgrids.

The partnership involves a minority investment in Direct Energy Partners through ABB’s venture capital unit, ABB Technology Ventures (ATV).

Financial details of the investment were not disclosed.

DEP focuses on local energy generation and distribution with scalable DC microgrids that aim to increase customer’s operational autonomy while reducing overall energy and operating costs.

The systems are touted by the startup as 10% more efficient than the industry standard and have a 30% lower total cost of ownership (TCO).

DEP’s DCIDE software platform streamlines the design and implementation of low-voltage DC microgrids. The digital development environment is aimed at enabling users to work solutions by matching designs automatically with real-world products available in its digital marketplace.

Smart Energy Finances: SVB’s collapse and its potential headwinds for cleantech startups

Megawatt-scale, low-voltage DC energy networks will play a key role in the energy transformation.

EVs, solar generation, wind farms, battery storage, hydrogen fuel cells, LED lighting, computing and consumer electronics all either generate or consume power as DC.

Distributing energy around factories, large buildings and sites using a DC microgrid will minimise the number of power conversion steps to provide higher energy efficiency, increased operational reliability and lower total cost of ownership.

Accenture acquires Flutura

IT company Accenture has agreed to acquire industrial Artificial Intelligence (AI) company Flutura, headquartered in Bangalore, India, to strengthen their industrial AI services for clients in energy, chemicals, metals, mining and pharma. Terms of this deal were not disclosed.

Flutura specialises in industrial data science services for manufacturers and other asset-intensive companies.

Its AI platform provides self-service solutions for advanced analytics, aiming to support process, asset management and reliability engineering teams to assess, predict and improve energy efficiency outcomes of production and manufacturing facilities.

Industrial engineers and data scientists can also quickly develop digital models of industrial assets on Flutura’s AI platform, which processes data from disparate IT and operations technology systems.

According to Senthil Ramani, senior managing director and Accenture Applied Intelligence lead for growth markets, the acquisition will enable their client companies – particularly in Australia, South-East Asia, Japan, Africa, India, Latin America and the Middle East – to “reduce emissions, energy consumption and lost output due to unplanned downtime of industrial assets.”

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Companies need strong AI capabilities to build a digital core and become more successful, according to research Accenture presented at the 2023 World Economic Forum in Davos. Another Accenture study found that most companies are not very AI-mature and have barely scratched the surface of the technology’s potential.

Last year, Accenture acquired data science company ALBERT in Japan. Other recent AI acquisitions include Analytics8 in Australia; Sentelis in France; Bridgei2i and Byte Prophecy in India; Pragsis Bidoop in Spain; Mudano in the UK; and Clarity Insights, End-to-End Analytics and Core Compete in the US.

R&D investment for data centre cooling

LiquidStack, which provides liquid immersion cooling for data centres, has received an investment from Trane Technologies, a global climate innovator.

Trane Technologies, through its strategic brand Trane, develops sustainable Heating, Ventilation and Air Conditioning (HVAC) and is, according to LiquidStack, one of the data centre industry’s most prominent suppliers of mission-critical infrastructure.

The investment aims to support adoption of LiquidStack’s solutions and significantly reduce data center carbon footprint, water consumption, e-waste and environmental impact.

Two-phase immersion cooling drastically reduces data centre direct and indirect carbon footprint to the tune of over 1,500 tonnes per MW versus air cooling.

This translates into 40% reduction in mechanical equipment energy use vs. air cooling, 33% lower CAPEX, 32% lower TCO and up to 69% compaction of data centre white space.

Broader adoption of LiquidStack’s technology can also reduce water usage for powering and cooling data centres by over 300 billion liters per year.

LiquidStack will primarily use the new funding to ramp up manufacturing, including the opening of a facility in the US.

In addition to increasing manufacturing scale, the new facility will include research and development labs, factory acceptance testing and a service training centre to support the demand and adoption of LiquidStack’s immersion cooling technology in hyperscale, cloud, colocation and edge computing applications.

For this and more finance and investment announcements coming from the energy sector, make sure to follow our column, Smart Energy Finances Weekly.

Cheers,
Yusuf Latief,
Content Producer, Smart Energy International

Follow me on LinkedIn

Silicon Valley Bank’s collapse

Being called the largest bank failure since the 2008 financial crisis, the effects of Silicon Valley Bank’s (SVB) collapse are far-reaching; with the energy sector feeling the effects.

The Bank was considered the go-to entity for startups seeking financing to get themselves off the ground, especially for those within the climate tech space.

According to the Bank’s website, SVB had 1,550 climate tech and sustainability clients. When it came to clean tech projects, the start-up focused bank had $3.2 billion in financing commitments for clean energy startups, leading or participating in 62% of community solar financing.

Examples of clean tech companies listed on their page include the likes of solar and virtual power plant developer Sunrun, Plus Power, AES, Leeward Renewable Energy and Bloom Energy, among many others.

The bank was shut down by regulators last week due to a failure of management and supervision according to a statement from the Bank Policy Institute and signals potential long term headwinds for energy sector startups.

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According to Energy Tech, the bank had previously vowed to commit more than $5 billion in loans, investments and other financing support for sustainability efforts, but got caught up in losing bond positions as the Federal Reserve continued raising benchmark lending rates to try and bring inflation down.

Although the failure will definitely have short term fallout for startups with vested interests, CNBC emphasises the growth of the climate tech startup space since the bank’s start, hailing their collapse as opportunity for new lenders to serve the market.

Explaining the potential that Silicon Valley Bank’s collapse may present for project bankability was Katie Rae, CEO of The Engine, an accelerator and venture fund focusing on “tough tech,” including climate startups – to CNBC.

“Fundamentally, the companies that are coming out of climate right now have real strength. These are foundational companies and people are going to want to lend to them because it’s good business.”

E.ON bolsters energy transition investment plan by €6 billion

In Europe, and on a more positive note, electric utility company E.ON has announced an significant upgrade to its 2027 investment plan.

After strong financial earnings in 2022 – adjusted Group EBITDA rose to €8.1 billion ($8.6 billion) in the 2022 financial year – E.ON points to further growth in the company’s network infrastructure due to their additional investments and has committed a €6 billion ($6.4 billion) increase to their investment programme to 2027.

This constitutes a more than 20% increase, totalling €33 billion ($35.2 billion) until 2027.

More than 95% of the planned investment activities that are covered by the EU taxonomy are expected to meet its strict sustainability criteria. The largest share of the additional investment, up to €4 billion ($4.3 billion), will go toward energy networks.

In particular, the ambitious expansion targets for renewables are leading to further increased demand in Germany and Europe to connect these facilities to the network and to expand the network capacity. 15% of Europe’s renewables capacity is already connected to E.ON’s networks.

An EV startup’s equity lifeline

British EV startup Arrival has announced a $300 million equity financing line with Westwood Capital, aiming to slow its cash burn and sharpen a US product strategy.

The startup is hoping to commence US production of its Class 4 XL electric Delivery Van in the Charlotte factory in late 2024.

Key elements of the company’s financing and strategic plan include lowering their targeted cash spend to no more than $35 million/quarter – aiming to significantly reduce the size of investment required to fund the business this year – and finalising a 50% reduction of the Company’s global workforce in Q1.

The financing line will provide the Company with access to additional liquidity, hoped to fund the business into late 2023 without the investments required for XL production.

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At the end of December, the Company had $205 million of cash on hand. This was insufficient to fund its business plan or its operation for a period of 12 months, and so Westwood’s equity is seen as a financial lifeline for the company.

With the actions taken to reduce costs and the capital commitments subsequent to year end, the Company believes it can operate the business into 2024 while it seeks to raise capital to complete the vehicle programme for the US.

However, there remain material uncertainties about the Company’s ability to continue as this further capital is required to fund the company to a breakeven point.

Zinc8 energy storage system funding for first commercial factory

Zinc8 Energy Storage Solutions Inc. has announced approval from the Ulster County Industrial Development Agency (UCIDA) of the issuance of tax-exempt revenue bonds for up to $10 million to undertake the buildout and completion of their first commercial manufacturing facility within Ulster County, New York.

Proceeds are expected to be utilised for the acquisition of machinery, equipment, fit-up and improvements to the facility.

Once a lease has been entered into, the Company expects additional investment will be needed into the facility over the first three years after taking possession.

Zinc8 has developed its battery technology using zinc and air as fuel. Power from the grid or renewable source is used to generate zinc particles in a Zinc Regenerator and Oxygen is released into the atmosphere as a by-product. The zinc particles are flowed to the storage tank and maintained in potassium hydroxide (KOH) electrolyte until required.

Whenever power is needed, the zinc particles are delivered to the power stack, recombining them with oxygen to generate electricity. The zinc oxide (ZnO) by-product is returned to the storage tank for later regeneration.

The Company is currently reviewing the capital requirements to fund the buildout of the manufacturing facility.

The Ulster County tax-exempt municipal bonds are subject to various terms and conditions, including limitations on the use of funds and repayment terms.

The Company has engaged KeyBanc Capital Markets Inc. as placement agent to place the bonds with eligible investors in accordance with applicable securities laws.

For the latest finance and investment announcements coming out of the energy industry, make sure to follow Smart Energy Finances Weekly.

Cheers,
Yusuf Latief
Content Producer, Smart Energy Internaitonal

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Enel sells Romanian operations to Greece’s Public Power Corporation

Enel Group is selling all equity stakes in Romania to PPC, the largest electric power company in Greece, for €1,3 billion ($1.3 billion).

The sale is part of the energy major’s attempt to reduce debt; their consolidated net debt amounts to approximately €1.7 billion ($1.8 billion).

It also comes as part of Enel Group’s disposal plan to reposition their business and geographic interests, as announced in their 2023 to 2025 strategic plan. The plan aims to focus the Group’s clean energy growth across targeted countries, namely Italy, Spain, the United States, Brazil, Chile and Colombia.

Enel Group has been operating in Romania since 2005 in power distribution and supply, as well as renewable energy, with over 500MW managed by Enel Green Power Romania and advanced energy services.

The Group’s Romanian distribution companies operate in three key areas of the country, namely Muntenia Sud (including Bucharest), Banat and Dobrogea, serving a total of over 3 million customers.

Closing of the sale is expected by the third quarter of 2023.

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Debt financing for digitalisation

Italian investment bank Cassa Depositi e Prestiti (CDP) is lending €120 million ($127 million) to Milan-based energy and manufacturing company Prysmian group for innovative R&D and accelerating digitalisation.

The initiative being financed is part of a larger project focusing on four areas:

• Innovative materials research (from the use of nanotechnology to new sustainable materials and solutions, management of low-voltage power grids and systems, and hybrid cables for the energy and telecommunications sector)
• Testing (from the use of alternative materials for cable design to advanced cable operation technologies)
• New product development (from dynamic cables for offshore renewable energy to high-performance optical fibre, e-mobility cable solutions and design of sensors for localising, monitoring and managing power grids)
• Digital transformation and sustainability (from the implementation of digital solutions for machine learning and artificial intelligence to the development of sustainability impact assessment models)

Prysmian R&D is in line with the Paris Agreement and the European Green Deal and Horizon Europe directives for the promotion of clean, renewable energy.

Resources granted under the loan – which has a six-year maturity – are part of a long-standing collaboration between CDP and Prysmian Group:

“This transaction confirms the important role of CDP in supporting an Italian Group that is among the global leaders of its industry and invests considerably in research and development to continue its innovation journey,” stated Andrea Nuzzi, head of corporate and financial institutions, CDP.

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The loan was announced three days prior to Prysmian releasing their 2022 profits. With their adjusted EBITDA at 52.5% growth from 2021, the company is calling it the “best year ever”, with energy being the primary driver.

Specifically, energy transition, electrification and digitalisation resulted in an order book of projects at €8.4 billion ($8.9 billion). Renewables, power distribution and data centres drove energy sales up by 12.3%.

Seeded expansion for a water & EV-based VPP

Shifted Energy, a Hawaii-based Distributed Energy Resources (DER) company, closed a $4.3 million seed funding round to expand energy efficiency programmes and distribute smart energy products.

Shifted Energy deploys DER control and monitoring systems, machine-learning data analytics and dispatch optimisation software to its customer base, utilities included.

The company’s software creates Virtual Power Plants (VPPs) out of single and multifamily homes by connecting electrical appliances such as water heaters and EV chargers to a cloud-based platform. These resources are aggregated to benefit utilities as energy storage, load reduction and fast-frequency response.

Co-led by EPIC Ventures and Kapor Capital, with participating investors Buoyant Ventures, Startup Capital Ventures x SBI Fund, and Hunt Development, the funding round will be used for talent acquisition and expanding coverage areas throughout the US, Canada and Australia.

“As the energy transition continues to gain steam, we see a tremendous opportunity for Shifted Energy to bring new technologies to local communities for the benefit of both individual ratepayers and large-scale utilities,” said Allison Myers, co-founder and general partner at Buoyant Ventures.

For the latest in finance and investment announcements coming out of the energy industry, make sure to follow our finance column, Smart Energy Finances Weekly.

Cheers,
Yusuf Latief,
Content Producer, Smart Energy International

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An investment scenario for grid strategies

The Dutch regional network operators have published an investment scenario report, under the flag of Netbeheer Nederland – an association of national and regional electricity and gas network operators.

The report, Scenarios investment plans, was drafted as a basis for elaboration on the investment plans of regional grid managers.

The investment scenarios in the new report have been adapted to climate ambitions to achieve a 55% CO2 reduction by 2030, in line with that laid down in the EU’s Fit for 55 Climate Act.

This means that the task has been adjusted significantly upwards compared to scenarios in the investment plan for 2022.

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The report lays out three scenarios specifically to form a basis for Dutch grid investments:

1. Climate Ambition (KA): A central scenario based on all existing and proposed energy and climate policy (Klimaat en Energieverkenning 2022).
2. National Drivers (ND): A “flanking” scenario with more focus on electrification of demand and sustainable generation on land.
3. International Ambition (IA): Another flanking scenario with more focus on sustainable gases, including hydrogen.

Through the scenarios, the Dutch network operators map out what they will need to consider for well-founded investment plans, in line with the country and continent’s energy ambition.

Each accounts for trends important for energy networks as well as the changing landscape of the energy transition – in both the amounts of energy used and which energy carriers will be important.

Amprion increases syndicated loan agreement by €500 million

As Netbeheer Nederland released its investment report, the Dutch TSO Amprion announced an increase loan for an existing syndicated agreement.

The credit line has been increased by €500 million ($530 million) to a total of €2 billion ($2.1 billion). All eight original syndicate banks participate proportionally in the expansion.

The original agreement was signed in April 2021, allowing the Dortmund-based utility to develop and align its financing strategies with investments in transmission.

By stepping up the syndicated loan agreement, Amprion is now hoping to increase its flexibility for short-term financing in response to the increased investments necessary to accelerate grid expansion across the country, which in 2022 experienced significant recurring grid bottlenecks.

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Participating banks include Bayerische Landesbank, Commerzbank, DZ Bank, ING, Landesbank Baden-Württemberg, Landesbank Hessen-Thüringen, SEB and UniCredit.

Peter Rüth, chief financial officer of Amprion stated: “The syndicated loan agreement with our eight banking partners is the basis for our bridge-to-bond financing strategy.

“By increasing the financing volume, we are creating even greater flexibility in short-term financing and will be able to take even better advantage of market opportunities in the future.”

The loan agreement has a term of four years with an option of extending by a total of two further years.

UK cleantech investors pool £6 billion in new coalition

Meanwhile, in the UK, a new strategic coalition of cleantech investors has been formed.

The coalition – Cleantech for UK – was formed with combined funds of over £6 billion ($7.2 billion) to accelerate its namesake, UK clean technologies.

The coalition sees Kiko Ventures join other cleantech accelerators and investors in the UK, supported by Breakthrough Energy – an umbrella energy company founded by Bill Gates – and organised by Cleantech Group, an analyst team covering global investment trends in the energy sector.

Cleantech venture capital investment for the UK in 2022 amounted to £3.2 billion ($3.9 billion), equalling the record-breaking amounts of 2021.

Founding members of the coalition include Imperial College London’s cleantech accelerator Undaunted, Clean Growth Fund (cleantech venture capital investor), Kiko Ventures (cleantech venture capital investor), Breakthrough Energy Ventures (cleantech venture capital investor), Just Climate (climate-led investor) and Legal & General Capital (alternative asset platform).

IEA‘s first meeting of new Finance Industry Advisory Board

And in global developments, the IEA held the first meeting of its new Finance Industry Advisory Board, bringing together 40 representatives of leading actors in the world of energy finance, including banks, asset managers and international financial institutions.

The IEA convened the new board to enable a more structured dialogue with the energy finance community on a range of issues affecting energy investment, in particular as they relate to clean energy transitions.

At the meeting at the IEA headquarters in Paris, participants exchanged views on some of the main investment-related outputs planned by the IEA for 2023.

These include the annual World Energy Investment report that tracks flows of capital into the energy sector; an upcoming joint report with the International Finance Corporation on scaling up private sector finance into clean energy projects in emerging and developing economies; the Cost of Capital Observatory that is run by the IEA and several partners; new analysis on clean energy finance in Africa that is being developed in cooperation with the African Development Bank; and planned analysis for the COP28 Climate Change Conference on the oil and gas industry in transitions to net zero emissions.

The IEA has three main aims for the new initiative:

1. To provide a structured exchange of views on the main IEA analytical outputs relating to energy investment and finance.
2. To provide an institutional channel for dialogue between the energy finance community and energy policymakers.
3. To allow for regular exchanges on the use of IEA scenarios.

For the latest announcements coming out of energy’s finance and investment scene, make sure to follow our Smart Energy Finances Weekly column.

Cheers,
Yusuf Latief,
Content Producer, Smart Energy International

Follow me on LinkedIn

The country’s G20 presidency announced enhanced focus on energy issues, providing immense investment opportunity for energy firms as NTPC Green Energy (NGEL) stated their intention of raising an immense loan of Rs9,000 crore ($1.1 billion) to repay debt obligations after 15 renewable businesses were acquired in April, 2022.

Also on the radar is a new study from Juniper Research, which has found that revenue from EV (Electric Vehicle) charging will exceed $300 billion globally by 2027.

And Elia Group, which consists of Belgian TSO Elia and Germany’s wing of TSO 50Hertz – has become one of several Belgian companies selected to be part of BEL ESG, a new stock market index directly linked to sustainability, launched by Euronext.

India’s G20 Presidency

According to reportage by ET EnergyWorld from the Economic Times, India’s G20 presidency has announced a renewed focus on renewables, hoping to spur much needed investment in the industry.

The announcement was made while inaugurating India Energy Week 2023 in Bengaluru, as Prime minister Modi mentioned how India’s energy demand has significantly increased and will reach 11% of the global demand as compared to 5% currently.

Renewable investment in the country will be vital for international net zero goals to be reached.

As mentioned by ET EnergyWorld, in India‘s 2023 budget, Rs35,000 crores ($4.2 billion) were allocated as priority capital investment toward the energy transition in line with the government’s stated 2070 net zero goals.

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$1.1 billion renewable debt for a past renewables acquisition

NTPC Green Energy (NGEL) plans to raise a loan of up to Rs9,000 crore for repaying debt obligations towards NTPC – a state-run power giant in India – against an acquisition of 15 renewable energy assets and their CAPEX from back in April, 2022.

According to the Press Trust of India (via Outlook India), a document released details the company’s intention.

“NGEL intends to raise fresh debt and repay outstanding liability of about Rs8,200 crore ($990.1 million) towards NTPC by 31 March 2023 along with applicable liability of interest cost. Additional funds to the tune of Rs800 crore ($96.6 million) would be required for additional debt liability based on the balance sheet as on the closing date and for balance CAPEX payments of projects which are yet to achieve full COD (Cash On Delivery),” said the official document.

Press Trust of India further reports that the document stated that the minimum amount of loan offered by banks shall be Rs1,000 crore ($120.7 million) and in multiples of Rs500 crore ($60.4 million) thereafter.

Also of interest:
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EV charging to exceed $300 billion globally by 2027

Meanwhile, in the international scene, a new study from Juniper Research has found revenue from EV (Electric Vehicle) charging will exceed $300 billion globally by 2027; up from $66 billion in 2023.

The report, EV Charging: Key Opportunities, Regional Analysis & Market Forecasts 2023-2027, assessed leading EV charging vendors and evaluated them on a number of criteria, including depth and breadth of offerings, innovation and future prospects; providing extensive analysis of the competitive landscape in this dynamic market.

The Competitor Leaderboard ranked the three leading vendors as follows:

1. Siemens
2. ChargePoint
3. ABB

Research author Jordan Rookes explained further: “Siemens demonstrates an intricate knowledge of the market; targeting currently underserved segments, particularly public transport and fleets. Competing vendors must diversify their portfolio away from just home and public chargers and start targeting alternative high-growth market segments to maximise their market share.”

The research also predicts by 2027, the total number of plug-in vehicles will surpass 137 million globally; up from 49 million in 2023.

Elia joins sustainability stock market index

Over in Europe, Elia Group has become one of the Belgian companies selected to be part of BEL ESG, a new stock market index directly linked to sustainability, launched by Euronext, a pan-European stock exchange that offers trading and post-trade services.

The index is designed to meet an increasing market demand for improved visibility of sustainable investment tools. It will monitor 20 listed Brussels-based companies that adopt the best Environmental, Social and Governance (ESG) practices.

The index identifies and follows 20 BEL 20 and BEL Mid companies and states itself as a “sustainable version of the national blue-chip index” that will now also follow shares listed on the Brussels stock market.

Designed in partnership with ‘Sustainalytics’, a research and ratings institutions for ESG data, the index aims to help investors identify companies that show a strong commitment to sustainable development, combining economic performance with ESG considerations. The makeup of the index will be revised on a quarterly basis.

Elia Group correlates their integration into the new index with the implementation of ActNow, their sustainability programme focusing on five key dimensions in line with the United Nations Sustainable Development Goals (SDG), namely:

1. Decarbonising the electricity sector and business activities
2. Minimising environmental impact Group infrastructure
3. Improving health and safety conditions of employees and subcontractors
4. A committment to diversity, equality and inclusion
5. Attention to good governance to ensure long-term sustainable success

For the latest in the energy industry’s finance and investment scene, make sure to follow our column, Smart Energy Finances Weekly.

Cheers,
Yusuf Latief
Content Producer, Smart Energy International

Follow me on LinkedIn

Also on the radar are announcements from European energy trading platform Enmacc, which has launched guarantees of origin onto their request-for-quote platform after a successful Series B, and a leadership report from Guidehouse Insights, which has named Schneider Electric, General Electric, Oracle and OSI as leading Advanced Distribution Management Systems (ADMS) vendors.

Enel Finance first to link sustainability bond to EU taxonomy and SDGs

Enel Finance International N.V. (EFI) has launched a dual-tranche sustainability-linked bond for institutional investors in the Eurobond market for a total of €1.5 billion ($1.6 billion).

The new issue marks the first use by Enel of multiple KPIs per tranche. And is the first time in a public bond issuance – claims the Group – that a tranche of a bond couples a KPI linked to the EU Taxonomy with a KPI linked to the United Nations Sustainable Development Goals (SDGs).

The other tranche of the bond is linked to two KPIs related to the Group’s decarbonisation path, across direct and indirect greenhouse gas emission reduction.

The bond, which is guaranteed by Enel, was almost three times oversubscribed, with total orders of approximately €4 billion ($4.3 billion).

The issuance is structured in the following two tranches:

• €750 million ($798 million) at a fixed rate of 4.000%, with a settlement date set on 20 February 2023, maturing 20 February 2031. The issue price has been set at 98.877% and the effective yield at maturity is equal to 4.168%;
• €750 million at a fixed rate of 4.500%, with a settlement date set on 20 February 2023, maturing on 20 February 2043. The issue price has been set at 97.669% and the effective yield at maturity is equal to 4.682%.

The interest rate of both will remain unchanged to maturity, subject to the achievement of Sustainability Performance Targets.

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Enel collaborates on Italian maritime electrification

Trading platform adds GoOs for power and gas

Enmacc GmbH, an Over-The-Counter (OTC) energy trading platform in Europe, has launched Guarantees of Origin (GoOs) onto their Request-For-Quote (RFQ) platform, with the first trades completed.

Enmacc cites the move as a response to the necessity to decarbonise across industries and the evolving needs of Enmacc customers, who can now trade GoOs with the same RFQ technology as for power and gas and gain access to a new liquidity pool.

The launch came seven weeks after the second and final closing of Series B financing, in which the tech venture capital firm Bayern Kapital joined a group of investors.

Bayern Kapital’s Wachstumsfonds Bayern joined alongside Alantra’s Klima Energy Transition Fund, which led the financing round at €210 million ($223 million), and the 10x Group. Previous investors also include Chevron Technology Ventures, Piton Capital and Illuminate Financial.

While the final amount of the closed round has not been disclosed, Enmac touts it as an eight-figure sum.

The company is using the Series B capital to strengthen its position across Europe and introduce additional commodities, starting with guarantees of origin, which will be followed by CO₂ emission allowances (EUAs).

Founded in 2016 and headquartered in Munich, Germany, Enmacc aims to digitalise the energy trading process with a network of up to 2000 traders from various institutions, including energy suppliers, industrial companies, energy trading houses and municipal utilities.

Enmacc is now using its reach in the European market to move beyond power and gas; they have started rolling out environmental commodities — such as guarantees of origin and soon carbon allowances — trading on the platform.

Also of interest:
GridVerse – Enel Grids’ approach to the metaverse
Smart Energy Finances: Macquarie Assets acquires National Gas and sells Open Grid Europe

Guidehouse Insights highlights ADMS leaders

A new report from Guidehouse Insights examines the competitive landscape for Advanced Distribution Management Systems (ADMS) vendors.

While many vendors and utilities consider ADMS to be a combination of SCADA, a distribution management system (DMS) and an outage management system (OMS), this integrated architecture has grown in recent years to include EMS and DERMS modules, though this is not universal across vendors.

This evolution has led to a smaller, more refined pool of vendors made up of traditional OEMs, software conglomerates and several specialised providers.

And according to a Leaderboard report from Guidehouse Insights – Guidehouse Insights Leaderboard: ADMS Vendors, compares eight ADMS vendors using ten criteria: Vision, Go-to-Market Strategy, Partners, Technology, Geographic Reach, Sales & Marketing, Product Performance, Product Portfolio & Integrations, Pricing, and Staying Power – Schneider Electric, General Electric, Oracle, and OSI are the leading ADMS vendors.

“Among the collection of utility IT and OT systems, ADMS has been at the forefront of market innovation and investment over the past decade,” says Michael Kelly, principal research analyst with Guidehouse Insights.

“Leading ADMS providers continue to adequately differentiate themselves via highly sophisticated and reliable solutions, holistic product portfolios, low total cost-of-ownership, and more flexible architectures, pricing options and deployment models.”

Guidehouse Insights states how each of these companies stands out from the competition because of their technological development and portfolios, strong partner relationships, sustainable business models and significant market traction.

While Schneider Electric and General Electric are capitalising on their early-mover status through their solutions and product roadmaps, relative newcomers Oracle and OSI continue to make significant inroads with their own set of unique differentiators.

All of the vendors in the Leaderboard ranked as Leaders or Contenders, indicating a fiercely competitive landscape and an increasing need for them to differentiate.

For the latest in news coming from the energy industry’s finance and investment scene, make sure to follow Smart Energy Finances Weekly.

Cheers,
Yusuf Latief
Content Producer, Smart Energy International

Follow me on Linkedin

Also on the radar is sonnen, seen making moves into the Dutch market.

Macquarie acquires equity in National Gas

National Grid plc has completed the sale of 60% equity interest in its UK gas transmission and metering business (NGG) to UK asset and infrastructure manager Macquarie Asset Management and British Columbia Investment Management Corporation (BCI), a Canada-based institutional investor.

Initially announced in March 2021, National Grid states the sale is part of their pivot towards electricity, marking National Gas as owner of Britain’s gas network.

National Gas is comprised of two organisations – National Gas Transmission and National Gas Metering.

National Gas Transmission will own and operate the UK’s 7,600 km-long National Transmission System (NTS) and National Gas Metering will continue to provide maintenance and management services for over 7 million domestic, industrial and commercial gas meters.

Jon Butterworth will be staying on as CEO.

National Gas plans to invest in the UK’s energy security, by repurposing existing assets in collaboration with the UK Government and partners to deliver a hydrogen ‘backbone’ for Britain.

Have you read:
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Smart Energy Finances: Enel sells 50% stake in Gridspertise

Fluxys buys Macquarie Asset’s 24% stake in Open Grid Europe

A week before the completion of National Grid’s sale to Macquarie Asset Management, Belgium-based gas TSO Fluxys bought 25% stake in Open Grid Europe (OGE) – the largest TSO in Germany – from Macquarie.

According to Fluxys, their infrastructure and decarbonisation projects are complementary with OGEs, spelling a strategic alignment for the coming years between their subsidiaries in Belgium, Germany and Switzerland. This holds the prospect for Germany to create additional hydrogen import and CO2 export routes through Belgium.

Through the agreement, Fluxys is to acquire Macquarie European Infrastructure Fund 4’s 23.6 % stake in OGE, alongside a 0.5 % stake owned by Halifax Regional Municipality Master Trust.

Terms of the transaction have not been disclosed and closing is expected by the end of March 2023 upon approval of relevant regulatory authorities and other customary closing conditions.

Energy Transitions Podcast: Why a gas price cap could worsen the energy crisis

sonnen enters Dutch market continuing European growth push

As Fluxys’ acquisition signals strategic shifts within the European market, sonnen seeks to expand its penetration, specifically with a push into the Dutch market.

Residential energy storage and management firm sonnen is bringing its smart energy storage and energy services to the Netherlands. The Dutch market entry follows their recent expansion in Belgium and Spain as part of the company’s push for continued growth in Europe.

The company, which provides smart energy storage solutions and virtual power plant services, has stated the Netherlands’ PV market is growing rapidly: in 2020 and 2021 alone, a total capacity of 6.3GW was installed.

Also of interest:
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With its products, sonnen is now hoping to create optimal technical conditions for households with photovoltaic systems that want to make their energy supply independent and clean.

Various versions of the sonnenBatterie are already available in Europe in Germany, Austria and Switzerland, Italy, the UK, Sweden, Ireland, Spain and Belgium. Outside Europe they are available in Australia and in the US.

Currently, sonnen operates virtual power plants in Germany, Italy, Australia and the USA.

For the latest insights into the finance and investment scene within the energy transition, make sure to follow Smart Energy Finances Weekly.

I will also be walking the floors at GridTech Connect (6 February) and DISTRIBUTECH (on the 7th and 8th of February) in San Diego, California. Hope to see you there!

Cheers,
Yusuf Latief
Content Producer, Smart Energy International

Follow me on LinkedIn

Also on the radar are a successful Series A investment from BMW i –  a subsidiary of BMW founded to design and manufacture plug-in Electric Vehicles (EVs) – in an EV charger solution.

Additionally, AMI provider CrescoNet has consolidated its utility solutions as Scalar launches an energy-as-a-service offering.

Solar EV developer bankrupt

Atlas Technologies B.V., a subsidiary of Atlas Technologies Holdings, an information solutions designer, has announced bankruptcy.

The operating company was responsible for the development of the Lightyear 0 – the world’s first long-range solar-panelled EV – production of which has now been suspended.  

The announcement came on January 26, three days after Lightyear submitted a request to suspend payment proceedings with the company, which was granted by the Dutch Rechtbank Oost-Brabant in ‘s-Hertogenbosch; the court declared Atlas Technologies B.V. bankrupt.

Atlas Technologies Holding B.V., which holds the IP rights, and Lightyear Layer B.V. are not in scope of the suspension of payments proceedings of Atlas Technologies B.V.

Lightyear has stated that due to the necessity of shifting focus from Lightyear 0 to Lightyear 2, the submission of suspension was necessary.

Lightyear 2 opened its wait list earlier this month, signalling its market entry.

CEO and co-founder Lex Hoefsloot commented on the move and their strategy to focus on development of the Lightyear 2: “Unfortunately we had to make this decision. The whole process of developing Lightyear 0 has provided our company many valuable learnings over the past years. We are now redirecting all our energy towards building Lightyear 2 in order to make it available to clients on schedule.

According to Hoefsloot, after launching the waitlist for the Lightyear 2, over 40,000 individual customers subscribed with up to 20,000 pre-orders from fleet owners.

Said Hoefsloot: “We hope to conclude some key investments in the coming weeks in order to scale up to Lightyear 2, an affordable solar electric vehicle available for a wider audience.”

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BMW i invests in Ampeco

AMPECO, an EV charging management platform, has raised $16 million in venture capital investment after closing a Series A funding round led by BMW i Ventures.

The funding will be used to drive expansion into North America of the company’s EV charging platform, which aims to enable large-scale public, business, fleet, and residential providers to manage EV chargers at scale.

AMPECO’s solution integrates with smart meters, building management systems and renewable energy sources in the hopes of driving efficiency.

The company has over 120 customers in more than 45 markets, representing over 62,000 charging points.

They have an established foothold in the US and plan to use the funds to expand the engineering and product innovation teams while accelerating their position in North America with on-site local teams as well as in the UK, France and Germany.

In addition to the Silicon Valley-based Series A leader, Launchub Ventures and Cavalry Ventures accompanied angel investors.

BMW i Ventures was also an early investor in Chargepoint and Chargemaster, which has since been acquired by BP.

CrescoNet’s product shift

CrescoNet, which provides public and private LTE/5G standards-based Advanced Metering Infrastructure (AMI) and Internet of Things (IoT) solutions for utilities, is consolidating its electric and gas solutions and operations under the Smart Earth Technologies (SET) brand.

CrescoNet acquired SET in July 2021. According to the company, which is based in the US, the decision was based on their findings that the integration of electric, gas and water solutions into a common offering would be best in line with utility needs.

SET offers an integrated meter-to-cash platform to the water utility industry. The system includes solutions for data acquisition, near real-time remote device management and integration with customer information and billing systems.

Vivek Beri, chief executive officer for Smart Earth Technologies, commented: “SET is the right vehicle to provide the groundbreaking solutions in communications, metering, MDM and DERMS to the electric, water and gas industries.

“The CrescoNet and SET teams already work together as a company, but this shift embodies our vision as an organisation to deliver a unified solution designed by the best and brightest in our industry.”

Also of interest:
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Scalar’s energy as a service programme

Scalar, a US-based environmental company, announced its Energy as a Service financial services programme.

The programme is designed to help businesses institute environmentally-friendly protocols while reducing their overall energy costs.

The Scalar team specializes in energy management and through the energy as a service model, will offer energy-efficient management tools – such as smart meters and LED lighting – to companies aiming to going go green.

“We’re able to use our smart metering technologies, and…service packs for energy efficiency to guarantee carbon reduction and provide offsets with warranties,” stated Scalar CEO, Hubert Gutsa.

For the latest finance and investment announcements coming out of the energy industry, make sure to follow Smart Energy Finances, our weekly column.

Also, I will be walking the floors at GridTech Connect (6 February) and DISTRIBUTECH (on the 7th and 8th of February) in San Diego, California. Hope to see you there!

Cheers,
Yusuf Latief
Content Producer, Smart Energy International

Follow me on LinkedIn

This M&A announcement came in as Investcorp, partnering with IMB Business School, announced the results of its latest survey concerning top investment trends. The survey found the energy sector to be a dominant area for investment, specifically energy security, renewables and EVS/batteries.

Topping the survey was AI and digitisation which, although not directly linked, have widespread correlation and application within energy, especially with regards to efficacy and critical infrastructure performance.

Shell’s supercharged M&A

Shell’s USA subsidiary is acquiring Volta Inc. at $169 million, bringing Volta’s dual charging and media network to the oil giant, a move hoped to expand their opportunities in EV charging.

Shell USA Inc. will acquire all outstanding shares of Class A common stock of Volta at $0.86 per share in cash upon completion of the merger, which represents an approximate 18% premium to the closing price of Volta stock on January 17, 2023, the last full trading day prior to the announcement of the transaction.

The transaction provides the opportunity to unlock Volta’s signed pipeline of charging stalls in construction or evaluation and capture what Shell is calling a seismic EV charging market opportunity.

Volta’s extensive network leverages its proprietary PredictEV platform, which uses behavioural science and machine learning tech to help commercial property owners, cities and electric utilities plan EV infrastructure intelligently, efficiently and equitably.

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An affiliate of Shell will provide subordinated secured term loans to Volta to bridge Volta through the closing of the transaction.

The transaction is expected to close in the first half of 2023. Upon closing, Volta’s Class A common stock will no longer be listed on any public market.

Goldman Sachs & Co. LLC and Barclays Capital Inc. are serving as advisors to Volta, and Shearman & Sterling LLP is serving as Volta’s legal advisor.

Raymond James & Associates, Inc. provided a fairness opinion to Volta’s board of directors. UBS Securities LLC is serving as a financial advisor to Shell, and Norton Rose Fulbright US LLP is serving as Shell’s legal advisor.

Energy top investment priority – Investcorp

The latest survey from Investcorp, which was completed in partnership with IMB Business School, identified digitisation & AI, renewable energy and energy security as the three highest scoring investment trends – Electric Vehicles (EVs) and battery storage coming in at fifth – in terms of current and growing importance in the next three decades.

AI and digitisation

According to investors, AI and digitisation is recognised as the number one megatrend across all regions surveyed – Europe, Middle East and the US.

Over eight in 10 major global institutional investors stated they are currently investing in this space or will do in the future. Investors globally strongly believe that digitisation and AI will enable companies to provide solutions to pervasive problems and will enable a wave of innovation in the years to come.

Follow our column:
Smart Energy Finances: Badger acquires smart water solutions & TE Connectivity’s smart grid win
Smart Energy Finances Weekly: Elia Group outlook at negative & Adani’s smart metering subsidiary

Energy Security

Energy security was identified as a key theme for both Europe and the US, driven and exacerbated by the current conflict between Russia and Ukraine.

The conflict has dramatically increased energy and commodity prices, aggravated the post COVID-19 supply-side shock, caused additional disruption to supply chains and helped lead to a surge in inflation, all of which is being felt most strongly across European and US markets.

It has now become an imperative for Western markets to invest in domestic energy production to strengthen and ensure energy security.

Survey data suggest that investors anticipate the theme to continue well beyond the current conflict, leading to opportunities to invest in domestic energy production in Europe and beyond.

Net zero/decarbonisation and renewables

The survey highlights the lack of consensus between regions in terms of net zero, decarbonisation and renewables.

In the US and Europe, survey data suggest that these key themes are considered key investment trends that will define the next 30 years. However, the data also suggest that there is a disconnect between renewables and net zero/decarbonisation in both Asia and the Middle East.

In mind of the COP27 conference, the survey shows that there are strong regional views and opinions when it comes to net zero/decarbonisation and how quickly different regions should look to decarbonise.

In contrast, when it comes to renewables, attitudes differ given the significant investment in large-scale renewables projects underway in both Asia and the Middle East.

Varying economic considerations and energy reliance on fossil fuels across the regions explain the survey results, however, there is are clear decarbonisation opportunities in Asia and the Middle East, home to some of the largest carbon emission challenges.

Capital flow and demand

Rishi Kapoor, co-chief executive officer for Investcorp, said on the surveys findings: “Flow and demand for capital, market and sector forecasts as well as the regulatory environment are all key when thinking about future investment themes. Our most recent survey provides a great insight into how global investors are assessing and weighting the different global megatrends that are shaping the world’s markets.

“It is clear that for global investors, digitisation & AI is a key trend that will shape the global economic landscape over the long term and our data suggests that companies that leverage leading edge technologies for solving universal or critical problems are going to be as highly investible in the decades to come as they have been in recent years.

“Even though the sector has had a very difficult year it remains an attractive investment domain today and investors surveyed believe it will ride out the current macro-economic storm. This provides some hope and opportunity for growth capital and investors that predominantly invest in the technology space.”

For this and the latest news happening within the energy industry’s finance and investment scene, make sure to follow Smart Energy Finances Weekly.

Also, I will walking the floors at GridTech Connect (6 February) and DISTRIBUTECH (on the 7th and 8th of February) in San Diego, California. Hope to see you there!

Cheers,
Yusuf Latief
Content Producer, Smart Energy International

Follow me on LinkedIn

Also on the radar are two successfully closed seeding rounds.

Swedish company qvantum has raised €42 million ($45.5 million) to drive its European expansion and launch its next generation modular electric heat pump series, based on natural refrigerant, across Europe.

And Enpal, a European solar provider, has received €215 million ($233 million) in growth capital for its expansion strategy.

Badger acquires Syrinix

Badger Meter has acquired Syrinix, a privately-held provider of intelligent water monitoring solutions, for £15 million ($18.3 million), funded with available cash.

The acquisition will add a new element of smart water capabilities. The acquired company has its specialities in high-frequency pressure monitoring and leak detection within water distribution and collection networks.

Syrinix’s remote network monitoring equipment and cloud-based software platform deliver data, customised alerts and insights, providing real-time asset monitoring to reduce water loss and improve asset life.

On the other hand, Badger Meter is a global provider of water solutions, including flow measurement, quality and other system parameters.

Their offerings provide data and analytics with the hopes of optimising water operations. Add onto this the acquisition of Syrinix, it will be interesting to see how Badger’s offerings develop into the future.

Kenneth C. Bockhorst, chairman, president and chief executive officer of Badger Meter, stated on the acquisition: “We are pleased to add the hardware-enabled software capabilities of Syrinix into our smart water solutions portfolio.

“We continue to expand our comprehensive digital solutions to operationalise real-time data into actionable insights that improve efficiency, resiliency and sustainability. I look forward to working alongside the talented Syrinix team to further our aim to preserve the world’s most precious resource.”

Have you read:
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Octopus Energy to take over struggling competitor Bulb Energy

TE Connectivity adds grid monitoring portfolio to its mix

TE Connectivity, US-based consumer electronics company with a focus on connectivity and sensors, and Germany-based Kries-Energietechnik, have signed a sales agreement covering North, Central and the majority of South America.

Through the agreement, TE becomes the exclusive seller in the region of Kries’ portfolio of grid monitoring products that enable a smarter, more reliable and sustainable power network.

The joint portfolio is hoped to boost TE’s smart grid offerings to digitalise existing networks and provide information about where and how much power is flowing. These intelligent digital systems pinpoint faults and weak connections in the grid, providing a tool for power monitoring and asset management.

Through the exclusive partnership, TE will provide three key levels of smart grid monitoring solutions from Kries:

• Permanent voltage monitoring and detecting with the CAP-Line;
• Fault indication on underground and overhead networks with the IKI-Line;
• Remote monitoring and feeder control for substations with the PON-Line.

These product lines can be used with TE’s Raychem switchgear connectors and high voltage terminations for applications such as substations, underground and overhead power distribution networks.

Series B for a natural refrigerant heat pump series

Swedish heat-pump systems and tech company Qvantum has closed its Series B capital raise, securing €42 million.

The new capital will support Qvantum’s growth and expansion strategy and accelerate go-to-market of its next generation electric heat-pumps into densely populated urban areas and cities across Europe.

Specifically, the company will finalise its new production site in Åstorp (with a capacity of 50 000 heat pump per year) and launch its next generation modular electric heat pump series, based on natural refrigerant, across Europe.

The new electric heat pump platform is modular and designed to make the heat pump an integrated part of a local energy system.

The heat pumps are emission free and will be accessible to many application fields, including in densely populated areas.

Lead investors include Thomas von Koch (Partner and ex CEO of global private equity firm EQT) investing through his private company, IMAS Foundation, a sister foundation to the INGKA Foundation which is owner of the INGKA Group that operates most IKEA stores globally.

Munters, which develops energy-efficient air treatment and climate solutions, also joined the financing round and will enter into a co-operation agreement with Qvantum.

Other Series B investors are SEB Greentech, DIG Investment (connected to the H&M Persson family) and Gullspång Invest. Mats Rahmström, chief executive of Atlas Copco, is also investing through his private company and joins Qvantum as industrial advisor.

Also of interest:
Smart Energy Finances: Load shifting in the limelight
Shell acquires Next Kraftwerke to strengthen position in renewables trading

Series D for an intelligent energy provider’s platform expansion

Solar power provider Enpal has received a further €215 million ($233 million) in growth capital from a Series D funding round led by TPG Rise Climate with Westly Group and Activate Capital coming on board.

Existing investors such as HV Capital (backed by the European Investment Bank), SoftBank Vision Fund 2 and Princeville Climate Technology have also taken part and further increased their commitment.

The additional growth capital will enable Enpal to offer new products, expand into new markets and further develop the company’s intelligent energy platform.

Enpal offers an intelligent energy platform as well as PV systems with storage and a wall box to enable a clean energy transition for consumers.

In announcing the funding, Enpal founder and CEO Mario Kohle stated the company’s mission of helping tackle global climate change “by putting solar panels on every roof, a battery in every home and a wallbox electric vehicle in front of every door”.

For this and the latest news in the energy sector’s finance and investment scene, make sure to follow Smart Energy Finances Weekly.

I will also be attending GridTECH Connect (6 February) and DISTRIBUTECH International (7 to 9 February) in San Diego, California. Will I see you there?

Cheers,
Yusuf Latief,
Content Producer, Smart Energy International

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