French tech developer closes €215m for 1.4GWp demand response capacity
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Demand response tech developer Voltalis has closed €215 million ($233 million) in loans to finance its infrastructure project of 1.4GWp of demand response capacity.
According to the French tech company, the announcement marks the first non-recourse project financing structure dedicated to demand response.
The company states in a release that this financing structure, a type of commercial lending that entitles the lender to repayment only from the profits of the project at hand, has more typically been used for renewable energy projects.
With its use for a demand response programme, adds Voltalis, the company has created a new type of asset: the capacity to reduce consumption.
The financing follows two initial tranches totalling €148 million ($160 million). The round was completed by EDRAM, which emphasised its confidence with an additional contribution of €40 million ($43 million), and by BNPP Asset Management, a new entrant to the pool and contributor of €25 million ($27 million).
The new financing will be deployed by the end of 2025 for Voltalis’ demand response capacity, which curtails a building’s energy consumption to help power systems avoid the use of CO2-emitting power plants.
Commenting in a release was Mathieu Bineau, CEO of Voltalis: “The innovative project financing structure and the record amount secured over the last 12 months once again demonstrate Voltalis’ strength.
“They confirm that our ambitions are perfectly aligned with the imperatives of energy savings and transition for governments and populations. With the invaluable support of our lenders, whom I would like to thank for their confidence, we are ready to step up our operations to continue building the infrastructure that will meet these challenges.”
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Voltalis operates through short interruptions at individual scale, aggregating assets for flexible consumption.
According to the company, this includes the aggregation of millions of devices such as heating, air conditioning, heat pumps, hot water tanks and electric vehicle charging that help relieve the grid at periods of peak stress.
In 2024, for the second year running, Voltalis won the majority of MW in the latest French Demand Response tenders under lot 1 dedicated to the residential and tertiary sectors (buildings under 1MW).
With this new allotment by the French Ministry of Energy Transition, Voltalis benefits from a cumulative market share of over 83% and will be required to raise additional financing.
Added Jean-Francis Dusch, CEO of Edmond de Rothschild UK, CIO of Benjamin de Rothschild Infrastructure Debt Generation (BRIDGE) and global head of Infrastructure, Real Assets & Structured Finance, and Shirley Chojnacki, senior investment director – head of energy (BRIDGE): “We are very proud to renew our support for Voltalis by increasing our participation in the financing that underpins its development in this key sector. Indeed, electricity consumption management fits in perfectly with our infrastructure debt portfolio and, more significantly, with our commitment to the energy transition, a strong conviction of EDRAM since the launch of our infrastructure debt activity.
“By further supporting this financing, we also hope to support Voltalis in its long-term growth, helping it to consolidate its position as sector leader in France and Europe. We are very proud to be a partner of Voltalis.”
For this round of financing, the six lenders include EDRAM, LBPAM, CIC Private Debt, Schelcher Prince Gestion, SCOR Investment Partners and BNPP AM.
Voltalis cites their business model already proven on an installed base of 1.2 million appliances as key to convincing the financiers to lend their support.
Eight Advisory and Willkie Farr & Gallagher LLP assisted Voltalis in structuring this financing, while Herbert Smith Freehills LLP advised the lenders.
This financing also reinforces Voltalis’ objective of deploying 10 GWp capacity in France and Europe by 2030.
