Smart Energy Finances: SparkMeter funding, Elia in the US and AI assisting investments

This week we look at a $5 million investment into SparkMeter, which provides grid management solutions tailored to emerging markets, an acquisition from Elia Group signalling their entry into the US and insights into how AI can assist with clean tech investments in a constantly changing market environment.

Honeywell invests in Sparkmeter

SparkMeter, a provider of grid management services, equipment and software solutions across Africa, Asia and the Americas, has secured a strategic $5 million investment and global partnership with Honeywell Smart Energy, a utility digital solution provider.

Honeywell will provide its base of US utility customers with SparkMeter’s integrated cloud-based metering and operational analytics software and offer SparkMeter’s metering hardware to large emerging market countries.

Founded in 2013, SparkMeter provides grid management solutions tailored to emerging markets, where 2.1 billion people live without reliable electricity access.

The company touts a simple plug-and-play solution that enables microgrids and distribution utilities operating in remote locations to access a range of features, including flexible billing, customer communications and remote monitoring and control.

According to SparkMeter, the partnership comes as utilities globally look towards more advanced use cases of smart metering, beyond simple automated meter reading and billing integration.

According to SparkMeter, their modern industrial IoT tech platform provides a first-of-its-kind end-to-end metering and operational analytics solution, compatible with any Advanced Metering Infrastructure (AMI).

This allows utilities to circumvent electricity and revenue loss due to load management or payment challenges, and begin to plan for new grid dynamics such as DERs and EV chargers.

Also from Smart Energy Finances:
Funding for Capalo AI’s market optimisation platform
Purchasing electricity indexed to stock exchange prices

Elia Group enters US market

Elia Group has entered a firm agreement to acquire a 35.1% stake in energyRe Giga Projects.

The Belgium-based energy group will deploy $400 million over three years into energyRe Giga-Projects, with proceeds fully committed to fund project development in US electricity transmission and renewable energy generation.

A subsidiary of energyRe LLC, energyRe Giga is an independent US developer of clean energy solutions, including both utility-scale transmission and generation.

Founded in 2020 and dual-headquartered in Houston, Texas and New York, New York, energyRe’s focus on transmission-led generation combines HVDC transmission with emissions-free energy sources to decarbonise US cities and deliver clean power directly to the energy load centres.

With the acquisition, Elia Group enters the US markets alongside energyRe, an established partner with a strong pipeline of projects.

Elia Group, through its WindGrid subsidiary, will serve as the designated holding entity for the stake. This aligns with Elia Group’s growth strategy in Europe and in the US, which centres on expanding its overseas activities and reinforcing Elia Group’s development of sustainable energy solutions.

energyRe Giga brings local expertise with a highly experienced team, established track record in the development of projects in the US, solid pipeline of near-term projects and a strong network of partnerships.

Elia Group will contribute its strong offshore transmission capabilities across development, construction and operations and maintenance, close relationship with EU suppliers, strong HVDC expertise and experience in transmission planning and solving for congestion issues.

The acquisition will be accretive to Elia Group with returns above European regulated utilities targets enabled via a selective approach to project development, prioritising profitable and value-accretive projects focused on semiregulated markets.

The capital-light business model of energyRe Giga is also expected to have a minimal impact on Elia Group’s balance sheet.

energyRe Giga’s assets are sold upon completion of each project, with the opportunity to reinvest capital to foster further portfolio expansion.

The transaction is expected to close in the first quarter of 2024.

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How can AI help with energy investments?

A major trend in 2023 has been investments and acquisitions into AI-powered platforms that assist with grid forecasting and energy trading decisions.

This is not necessarily a surprise – the year has solidly demonstrated that artificial intelligence will continue to make its mark across industries, especially energy.

To gain more insights into how AI can assist with investments, I reached out to Brian Sathianathan, Co-Founder of Iterate.ai, who stated that “project developers in the energy sector can harness AI for competitive advantage and more targeted investor pitches.

“AI allows for the gathering and analysis of large datasets to identify market trends and tailor pitches. It also helps create personalized pitches based on investor interests, enhancing chances of securing funding.”

Sathianathan adds how, through the use of AI, investors are able to identify “potential investment opportunities and risk assessment, presenting robust propositions to potential investors.

“AI also streamlines smart contract management and stakeholder engagement by automating tasks and analysing public opinion respectively.

“AI has revolutionized the way we approach investment decisions, especially in the realm of clean tech projects.

“By leveraging predictive analytics, portfolio optimisation, fraud detection, NLP (Natural Language Processing), and automated trading, investors can make more informed decisions that balance financial returns with environmental and social responsibilities.”

No matter your thoughts on the place of AI within the workforce and energy landscape, its presence will surely continue to grow. And it is a presence worth watching.

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

Cheers,
Yusuf Latief
Content Producer
Smart Energy International

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