Smart Energy Finances: P2P energy exchange platform touts 1TWh in renewable assets
A P2P energy exchange platform, an investment from the low carbon investment fund into an energy retail service, 50Hertz’s green bond and an expanding energy storage market are on this week’s energy finances radar.
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.
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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