Electron has raised £4 million to accelerate the world’s transition to Net Zero through expansion in the UK, Europe and North America.
Its marketplace software ElectronConnect allows electricity system and network operators, renewable generators and flexible energy consumers to optimise their use of both variable renewable power, and network capacity based on time and location.
This time- and location-based optimisation is essential to achieving Net Zero energy, while reducing network congestion, faster connecting, more clean technologies to the grid, and ultimately lowering bills for consumers.
The investment round was led by East Innovate, the venture capital arm of quantitative commodity, technology and research company, East Alpha, with participation from Riverstone, Nesta, and One Planet Capital. The round was advised by Mountside Ventures.
The funds will support Electron’s rapidly growing team, invest in further product development, and expand its international presence.
“We believe that time and location-based markets for energy and flexibility are foundational to the fastest, cleanest path to Net Zero energy,” said CEO Jo-Jo Hubbard.
“But, when Electron started developing these markets six years ago, the policies, business models and technologies required to support such markets were still unclear.
“Fast forward to today, many of the world’s major economies have already reached 50%+ variable renewable generation; storage technologies have reached inflection point; over one million electric vehicles are already on the road; and increasingly congested networks have risen to the top of political agendas. There has never been a clearer need or mandate to deploy flexibility markets at scale.
“This is the inflection point for which we developed ElectronConnect: built with 25 utility partners across 5 countries to be the world’s most dynamic and integrated market platform for distributed, low-carbon grids.
“This funding brings us the resources to scale, as well as the right partners, insight and support on that journey. We are grateful for the backing of investors who share our vision and are excited to get going.”
East Innovate’s head of venture capital Rory Scott Russell commented: “We are delighted to back the Electron team in their mission to drive the adoption of flexibility markets at scale.
“We are deeply cognisant of the scale of the opportunity for global flexibility markets, especially in the context of an increasing variable supply of renewables; volatile energy prices; and ongoing cost of living crisis.
“Electron’s superior trading technology and software-first solution has the potential to build and maintain the leading position in this rapidly growing market.”