Swedish-based startup Greenely is closing an €8 million (about $8.7 million) Series A funding round.
The mentioned funds the specified company intends to spend on expanding its energy management platform in the Nordic countries. It is worth noting that in this case, the countries neighboring Sweden are meant.
Greenely is involved in the energy transition process. The process involved is not a project that can be realized in the shortest possible time, even with global and excessive efforts. The energy transition can in a sense be compared to a change in historical epochs. In this case, it does not imply something like political or social transformation. The mentioned process has historical significance in the context of a kind of evolution of the energy sector. At the same time, it should be noted that energy, both in the global sense and in a narrowly specific aspect, is one of the most important values for humanity, guaranteeing, among other things, the very possibility of its existence. As above mentioned, the energy transition is not a revolution in the social sense, but still, the relevant aspects of this process are likely to manifest themselves to a certain extent as the corresponding tendency materializes. It is worth noting that energy availability is one of the determining factors in the context of prospects and opportunities for economic growth. At the same time, the economic situation largely determines the state of affairs in society, provoking tensions if the material and financial circumstances are negative. The condition of the social system has a certain degree of influence on policy, varying depending on the specifics of a particular historical period. For this reason, energy is of great importance to the state power of any country in the broad sense of the relevant wording.
Greenely, which operates in the energy technology sector, currently serves around 200,000 households in the domestic market. The startup offers consumers free energy consumption analytics and optimization services. In this case, the end result is that paying customers can save money on their electricity consumption. One of the solutions is the smart charging of electric vehicles. In this case, the process is carried out at low electricity prices. Greenely can also reduce energy demand through the use of an automatic optimization mechanism.
Currently, energy optimization services are only available to customers who pay the company for energy supply. Greenely plans to abolish this requirement. The mentioned intention will be realized as the new European legislation is implemented in the Swedish market. This plan is expected to become a reality by the end of the current year.
The startup also offers its energy consumers the opportunity to install a home battery. Greenely is currently reselling the Pixii Home. The battery gives consumers the ability to store energy for later use. In this case, households respond to changes in wholesale electricity prices and optimize the time when they connect to the grid to reduce the amount of their spending.
The Greenely platform has been developed to integrate and manage energy consumption and demand in households with solar installations and heat pumps. For example, customers whose homes have batteries and solar panels can sell excess energy when the price of electricity is high and store it when the price is low for later sale.
Paying customers receive a dynamic hourly electricity tariff and the opportunity to tap a technology that Greenely calls a residential virtual power plant (VPP). The system allows customers to participate in balancing the electricity network and generates revenue opportunities through government payments. The system also promotes grid stability.
Greenely chief executive officer and co-founder Tanmoy Bari while speaking to the media said the company is making sure that its customers save a lot of money. According to him, the switch to the firm’s platform and its subsequent use contribute to the achievement of the respective economic goal. He also noted that the virtual power plant technology allows customers to earn income they have never seen before. According to him, the company aims to stabilize the energy system in Sweden. Separately, he said that the government of the country actually reimburses the firm for the costs that the brand gives to the consumers. In this context, Tanmoy Bari emphasized that the company’s customers can not only save money but also make a lot of money through the Greenely platform.
The average energy savings of the firm’s solution is 250 euros per consumer per year. At the same time, Tanmoy Bari notes that a household using an electric car can save up to 500 euros per year. According to him, this goal is achievable as a result of the Greenely platform’s ability to optimize charging.
Battery storage consumers also have the opportunity to generate revenue by supporting the company’s ability to help the government balance demand on the energy grid.
Tanmoy Bari estimates that if VPP technology were fully implemented in 2023, users could have generated more than €3,000 in balancing payments last year. In the meantime, customers should take into account the cost of the battery. However, the Greenely CEO notes that a household will recoup the spending on buying a home battery within two to three years.
It’s worth noting that the company hasn’t always been involved in the so-called race for smart consumption. Greenely was founded about ten years ago. The initial idea behind the company activity was to offer energy firms a tool to improve customer service. Over time, Greenely saw an opportunity to shape the experience for the energy consumer for tomorrow. The author of the corresponding formulation is Tanmoy Bari. Against the backdrop of this goal, Grennely faced the need to become an energy supplier.
The company’s current approach is somewhat similar to the concept of UK firm Octopus Energy or Swedish startup Tibber operating in the digital energy sector. Greenely’s goal is to go beyond direct competition as an energy supplier. The company aims to become an energy platform that customers of rival companies can also use to save money and generate revenue in addition to the services provided.
The decoupling of services is likely to allow Greenely to position itself as a more independent player, working on behalf of customers to reduce their energy bills and help generate earnings.
At the same time, Tanmoy Bari said his company does not see itself as an energy supplier. Greenely’s self-identity is centered on the firm’s status as an energy platform. Tanmoy Bari says that the company is committed to forming the best possible experience for consumers. He says the new funding will allow the firm to expand its platform to homeowners in Finland and Norway, which will be the first step towards international expansion.
The company is also currently considering other European markets where smart meters are widely used. This includes the United Kingdom and France. Tanmoy Bari says the company can adapt to regulatory differences in the management of energy markets across Europe. At the same time, he notes that the introduction of smart meters is a prerequisite as part of Greenely’s approach. For this reason, a market such as Germany is not yet part of the company’s expansion plan.
As we have reported earlier, Adani Green Energy Raises $1.13B to Boost Renewable Energy Transition in India.
