Greenely, a Swedish energy tech startup, is set to accelerate its expansion with an €8 million Series A funding round. The company offers an energy management platform that combines freemium energy consumption analytics with energy optimization services. Currently, these optimization services are only available to customers who also pay Greenely for energy supply. However, the startup plans to decouple this requirement as new European legislation is implemented. This will allow more customers to access the platform’s services, which include smarter charging of electric vehicles and accessing government payouts for reducing energy demand on the grid.
In addition to energy optimization, Greenely offers customers the option to install a home battery. This enables households to respond to changes in wholesale electricity prices and reduce their energy costs by storing energy for later use. The platform is also designed to integrate and manage energy use and demand for households with solar installations and heat pumps. For example, customers with home batteries and solar panels can sell surplus energy when prices are high and store it for later use or future sale.
One of the standout features of Greenely’s platform is its “residential virtual power plant” (VPP) technology. This allows customers to participate in balancing the electricity network and generate revenue through government payouts. The CEO and co-founder of Greenely, Tanmoy Bari, explains that the company aggregates energy demand on a massive scale, stabilizing the power grid and leading to reimbursement from the government. This revenue is then passed on to the customers, allowing them to save and generate money through the platform.
On average, customers can save €250 per year on energy consumption through Greenely’s platform. However, Bari emphasizes that households charging an electric vehicle could see savings of up to €500 per year. Battery storage customers also have the opportunity to earn revenue by supporting Greenely in balancing demand on the grid. Bari suggests that users could have generated over €3,000 in balancing payments last year if the VPP tech had been fully live. While customers need to consider the cost of the battery, Bari states that a household can recoup the investment in two to three years.
Greenely’s journey began as a tool for energy utilities to enhance their customer experience. However, the team recognized an opportunity to become an “energy platform” that goes beyond directly competing as an energy supplier. By decoupling its services, Greenely aims to position itself as an independent player focused on driving down energy bills and helping customers generate revenue. This approach allows the startup to scale its platform and have a greater impact on energy management and demand, potentially accelerating Europe’s decarbonization efforts.
The new funding will enable Greenely to expand its platform to homeowners in Finland and Norway as a first step for international expansion. The startup also has its sights set on other European markets, such as France and the UK, where smart meter uptake has been good. However, markets with low smart meter penetration, like Germany, are not currently part of Greenely’s roadmap.
Greenely’s Series A funding round was led by Belgian investment company Korys, with participation from existing investor Luminar Ventures and other shareholders. The company has raised about €15 million to date. Commenting on the funding, Korys’ investment director and investment manager expressed their excitement to partner with Greenely and support its geographic and product expansion.
In conclusion, Greenely’s energy management platform and virtual power plant technology offer customers the opportunity to save on energy consumption and generate revenue. With its expansion plans and focus on becoming the largest player in Europe, Greenely aims to revolutionize the way households consume electricity and contribute to a net-zero future.