Renewable Energy Startup Tem Aims to Disrupt the Utilities Industry
Renewable energy is gaining traction worldwide as nations strive to reduce their carbon emissions and become more climate-neutral. The need for clean energy alternatives is also underscored by rising oil and gas prices. In this context, London-based startup Tem aims to revolutionize the utilities industry by connecting businesses directly to renewable energy sources and bypassing traditional energy providers.
Tem, often referred to as the U.K.’s first “neo-utility,” has developed a marketplace and platform that leverages technology to streamline the process of procuring renewable energy. The company partners with an existing Ofgem-regulated utility instead of obtaining its own supply license. This approach allows Tem to focus on its core mission of enabling businesses to access affordable clean energy and meet their climate targets.
The platform uses an AI matching algorithm to connect businesses with suitable renewable generators based on their energy requirements. Through Tem’s interface, customers can select their renewable energy priorities, preferred contract length, and view data related to power consumption and the origin of their energy. With over 200 customers, including prestigious organizations like Silverstone, Tem has successfully facilitated the transition to renewable energy for a diverse range of businesses.
One of the key advantages of Tem’s platform is its ability to simplify and streamline the complex process of transacting with renewable energy sources. Typically, companies would need to negotiate long-term power purchase agreements (PPAs) and manage costly administration. However, Tem’s platform eliminates these barriers, making renewable energy more accessible to businesses of all sizes.
In terms of pricing, Tem charges a variable percentage of each transaction, ensuring that energy prices are at least 10% cheaper than the wholesale market. The startup has also positioned itself as a trustworthy and reliable alternative to traditional energy providers. Unlike some competitors that source energy from renewable or offset sources through traditional utility markets, Tem directly matches businesses with renewable generators. This approach mitigates risks associated with volatility and high transaction costs.
Investors have recognized the potential of Tem’s disruptive model, as evidenced by the recent £10.5 million ($13.7 million) Series A funding round led by Atomico. Other participants include AlbionVC, Revent, and notable angel backers such as Holly and Sam Branson, as well as executives from Wise. This funding will support Tem’s expansion plans beyond the U.K., with a focus on European markets like Germany and the Nordics, followed by the United States.
Tem’s innovative platform is an excellent example of how technology can transform traditional industries. By connecting businesses directly to renewable energy sources, Tem empowers companies to reduce their carbon footprint and contribute to a more sustainable future. With its emphasis on affordability, transparency, and simplicity, Tem is well-positioned to disrupt the utilities industry and accelerate the adoption of clean energy on a global scale.