Dutch demand flexibility startup Sympower has completed a €5.2mm Series B, backed by Kees Koolen, raised to bring increased demand flexibility to European electricity markets. Sympower has already made a mark on the European grid system by partnering with Fingrid, Svenska Kraftnät, and TenneT.
The power industry is one where the simple rules of supply and demand drive efficiency in both operations and revenue. Inefficiencies caused by supply-demand imbalances drive fluctuations in electricity prices, with energy consumption peaks prices occurring at times of high demand. Demand flexibility alleviates the stresses of price volatility by shifting energy consumption to times where there is greater availability of cheaper resources.
Why does this matter?
- Utility participation in demand flexibility in Europe signals strong support in the shift towards renewable energy power generation, as supply volatility in renewable sources adds risk to electricity markets
- Peak shifting as a result of demand flexibility not only reduces electricity costs for the average residential, commercial, and industrial sectors, especially for powering HVAC systems and boilers, but it mitigates the risk that is posed by variability in the renewable power supply
- Policy on grid optimization will further expedite the need for demand flexibility and increase the case of smart grid deployment
An effective solution to grid imbalance is essential to reliable power grids in the green revolution. Due to natural variability in wind and solar assets, predicting supply becomes a significant challenge. Sympower’s solution to variability further legitimizes renewable assets and provides a more clear pathway for the integration of energy storage systems.
Because demand flexibility essentially shifts demand to times periods of less usage, energy storage can be a sink or source for power supply during peaks and troughs. In the field, that means taking advantage of price arbitrage to provide financial stability in power volatility. While Sympower’s software solution to demand flexibility is just the start to more reliable, cheaper power, it paves the way for further innovation in grid optimization and DER.
About The Author
Impact Investment Fellow
Matt is an Impact Investment Fellow with Vectors Angels as a part of the organization’s sustainability team. While most disciplined in power generation and energy storage, Matt takes on a wide array of technologies in the sector.
Leveraging these skills, Matt works with early-stage startups on fundraising and go-to-market strategies, understanding their market, and competitor due diligence.
Matt holds a BS in Finance and Economics from Boston College and an MEng from Boston University in Materials Science & Engineering. Matt’s graduate research and passion focused on the impact fundraising mechanisms and financial institutions have on the success of startups in the renewable energy and cleantech industries. His current interests involve developing new financial instruments to fund demo and pilot “tough tech” projects and closing the commercialization gap.