Paris-based Granular Energy, a startup providing market solutions for clean energy, announced that it has secured €7.5M in funding, led by Norrsken VC, to enhance transparency in the green energy market.
The round also saw participation from All Iron Ventures, Box Group, Valo Ventures, and existing investors Seedcamp, Revent and Powerhouse Ventures.
Agate Freimane, General Partner at Norrsken VC says, “We’re excited to support the Granular team on their journey to revolutionise the power grid. Granular Energy’s software empowers utility companies to offer honest insights to customers about their energy sources, at a time when there’s increasing demand for transparency.”
“We believe in the team’s vision to drive substantial change and make greener energy not only more readily accessible and understood but the norm.”
Market solutions for clean energy
Granular Energy addresses the lack of information in the green electricity sector by providing consumers with real-time data on energy sources.
By empowering individuals to make informed choices and invest in clean energy initiatives where needed, the company claims to contribute significantly to global sustainability efforts, fostering positive environmental, social, and economic change.
“How green is your green energy? The answer is surprisingly murky,” Toby Ferenczi, co-founder of Granular Energy says, “Many consumers are on contracts branded as ‘100 per cent renewable,’ yet there are serious questions about what this really means.”
“Energy companies are allowed to market tariffs as ‘green’ if they can evidence that they have sourced enough energy certificates to cover the energy consumed by their customers – from businesses to households – on that tariff within a 12-month period.”
“This means that a company could, for example, buy certificates for renewable energy from a solar farm in the middle of summer, and claim to use that energy for electricity consumption at night in winter.”
“Furthermore, energy companies are not required to disclose from where they have bought certificates or how they have been assigned to their customers. A recent survey showed that globally, less than 5 per cent of leading utilities fully disclosed the renewable energy sources behind their green offers last year,” adds Ferenczi.
This is where Granular Energy comes in. The company introduces software for utilities, automating energy certificate management and significantly improving operational efficiency.
This innovation enables utilities to offer customers transparency, detailing the exact sources of their energy and associated carbon emissions.
Despite the absence of mandatory legislation, 25 utilities in 9 countries have already adopted this solution, responding to the rising demand for transparency from environmentally conscious consumers and businesses.
Realistic view of electricity supply
Sourcing clean energy on an hourly basis provides transparency, showing consumers when there’s excess clean energy and when there’s a shortfall. This real-time information encourages the adoption of technologies like batteries and demand response, enabling better utilisation of clean energy and accelerating the decarbonisation of electricity grids.
Traditional annual matching of supply and demand doesn’t offer this level of insight or incentive for technology adoption.
Toby Ferenczi, co-founder of Granular Energy says, “One of the most effective things anyone can do to reduce their carbon footprint is to purchase energy from carbon-free sources. We’re helping energy companies create more transparent offers for their customers to make switching to clean energy more accessible and more impactful.”
“Consumers deserve to know whether their electricity comes from a source that is either destroying our planet or is part of our future.”
Thomas Parsons, Director of Sales and Origination at leading UK green energy provider Good Energy adds, “Good Energy has for a long time been vocal about the problems with the existing energy certificate system.”
“Moving to ‘hourly-matched’ clean energy is the only way for consumers to really ensure they are eliminating fossil fuels from their energy supply. We are delighted to be working with Granular Energy to make this possible for our customers.”