The $331bn market potential for smart energy and two European startups staking a claim

In this week’s Power Playbook: The smart energy market is surging and European startups have been spotted staking a claim.

In April, Research and Markets released data projecting the smart energy market to grow from $199.5 billion in 2024 to $330.6 billion by 2030, growing at a CAGR of 8.8%.

So, what would be driving this market growth? Well, according to the research house:

• Technological advancements
• Proliferation of renewable energy
• Evolving consumer behaviour
• Rapid deployment of smart grids and advanced metering infrastructure (AMI)
• Increasing integration of DERs, such as rooftop solar panels and energy storage systems, by decentralising energy production and enhancing grid resilience
• Consumer demand, as residential and commercial users adopt smart energy technologies to gain greater control over energy usage and costs
• The rise of EVs, which creates a surge in demand for smart charging infrastructure

Additionally, says Research and Markets in their report, the backbone of the smart energy revolution lies in technological innovation, which is reshaping the way energy is produced, managed, and consumed.

AI and ML are enabling predictive analytics, real-time monitoring, and optimisation of energy systems. AI-driven energy management platforms help utilities and consumers identify patterns in energy usage, allowing for smarter decision-making and resource allocation.

Two startups caught my eye that fit this profile and successfully secured financing to grow their market share and further develop their tech, namely: VIOTAS and Soldera.

VIOTAS’ €10 million: Demand response services

VIOTAS develops smart grid demand response services that pays large energy users to support grid stability.

Last week, the Limerick, Ireland-based company announced it secured a €10 million ($11.3 million) growth finance facility from Claret Capital Partners.

The new funding will enhance VIOTAS’ capacity to fuel international growth and develop new services to improve revenue certainty for its customers in what they say are complex and often volatile energy markets.

The company has to date largely self-funded its international growth through strong commercial performance.

The company recently established a foothold in the US, marked by a November 2024 launch event celebrating its entry into the Texas ERCOT market. This expansion requires both technical capability and sustained investment in the systems, teams, and infrastructure needed to operate at scale in a new market. Thus enter the deal with Claret Capital Partners.

The funding will also support progress in existing markets such as Australia, where price volatility can lead to variability in earnings for customers providing grid support. Namely, VIOTAS is developing services that help customers navigate these fluctuations by unlocking more stable, long-term value for participating in energy flexibility programmes.

Commenting in a release was Prof. Paddy Finn, CEO of VIOTAS: “This facility provides additional firepower to move even faster—developing new technologies, entering new markets, and supporting customers with more resilient, value-generating services.”

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Soldera’s €2.5 million: Guarantees of Origin (GOs)

Also this month, Soldera announced a €2.5 million ($2.8 million) financing round, led by Lifeline Ventures, with participation from Skaala, Lemonade Stand, Alumni Ventures, and others.

Soldera, based in Estonia, aims to streamline the way certificates that verify and monetise renewable electricity production are traded in Europe.

According to the company on their website, the renewable energy market faces unnecessary constraints from outdated administrative processes. While producers deploy state-of-the-art wind farms and solar installations, supporting systems remain inefficient – they are manual, error-prone and resource-intensive.

Thus enter the Estonian startup, whose AI-powered tech automates the management and trading of GOs in the renewable energy sector; GOs are digital certificates that verify the renewable energy source of electricity. Namely, Soldera’s platform aims to help renewable energy producers of all sizes save time by automating registration, administration and sales.

Boasting a network of over 3,000 renewable energy producers, the company in a release says the fresh funding will be used to continue expanding their platform, onboard more producers, and enhance their AI-based tech.

The funding also means more terawatt-hours under management on the platform, which they say will ultimately translate into better aggregate pricing for their customers.

Soldera calls the backing from the likes of Lifeline and others as indicative of growing confidence for GOs: a bullish signal from venture capitalists for the market.

“By backing Soldera, these investors are making a fund-returning bet that would not be possible without significant GO market growth. Interestingly, some are making focused bets on energy infrastructure, while others position Soldera as a crucial play within broader climate portfolios. This diversity of conviction into GO market infrastructure represents a strong consensus that the GO & REC market has a bright future ahead,” said the company in a blog post.

The smart energy market is clearly entering a high-growth phase, European startups like VIOTAS and Soldera demonstrating the type of tech that will tap into its potential.

What do you think? What other technologies and startups should we be on the lookout for in this burgeoning space as our net zero targets inch closer?

Reach out and let me know.

Cheers,
Yusuf Latief
Content Producer
Smart Energy International

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