Zurich-based Pexapark, a provider of Power Purchase Agreement (PPA) solutions for renewable energy, announced that it has secured €20M in a Series C round of funding.
The investment, led by Telstra Ventures, with participation from Swisscom Ventures and the A&G Energy Transition Tech Fund (A&G ETTF) is the VC arm of A&G, will support Pexapark’s growth in the global renewable energy markets.
Albert Bielinko, Partner at Telstra Ventures, says, “We invested in Pexapark because we believe they are the global leader in energy risk management software for investors in renewable energy, as well as the leading source of market intelligence for renewable PPAs.”
“Signing PPAs is crucial to ensure new renewables projects can be financed and Pexapark provides a critical service that makes this process more efficient.”
“As the world transitions to renewables, and government subsidies are gradually removed, we believe Pexapark’s services will be indispensable. Pexapark also has an iconic team who structured the first PPAs in Europe many years ago,” adds Bielinko.
Operating system to buy, sell and manage renewable energy
Founded in 2017 by Michael Waldner, Luca Pedretti and Florian Müller, Pexapark is specialised in the renewable energy sector, offering market intelligence, software, and advisory services.
The company has facilitated over 30,000 MW of renewable PPA transactions, making it a trusted platform for managing renewable energy investments.
Pexapark provides transparent PPA reference prices in 19 markets and assists companies in successful PPA transactions, market risk management, and monetising renewable energy investments.
The company is dedicated to accelerating the transition to net-zero emissions by creating an efficient market for renewable energy.
Capital utilisation
Pexapark says that the funding will enable the company to enhance its technology, expand its advisory services, and help customers navigate opportunities and risks in the energy transition.
Michael Waldner, CEO, Pexapark says, “The renewable energy market is experiencing significant and sustained growth, driven by its cost competitiveness and robust political support.”
“Despite this, renewable energy investors face a complex set of challenges – from market opacity to price volatility and regulatory pressures. In this dynamic landscape, possessing both market intelligence and energy risk management capabilities has become absolutely critical.
These capabilities are crucial not only for competitively pricing energy but also for safeguarding capital by effectively managing exposure to market risks.”
“This fresh injection of capital takes us into the next exciting phase of our mission to equip renewable energy players around the globe with the expertise, processes, and systems to thrive amid evolving market dynamics.”
The funding will fuel innovation in Pexapark’s services, including trusted reference prices for Power Purchase Agreements (PPAs) in Europe, PPA transaction advisory services, and their unique energy risk and portfolio management software, PexaOS.
These services have already been adopted by over 200 renewable energy, storage, and green hydrogen companies in Europe, such as Octopus Energy Generation, Statkraft, BP, EDF Renewables, and Covestro.
Pexapark’s services, including transparent pricing in 19 markets and managing over 30GW of PPAs, have garnered significant industry traction. Their software, PexaOS, is actively managing 13GW of renewable assets for Independent Power Producers and funds across Europe.
Leveraging their investors’ global presence, Pexapark aims to expand its team and offerings to meet the increasing global demand for renewable energy solutions.
Brief about the investors
Telstra Ventures has made 92 investments leading to 38 successful exits including companies like Auth0 and DocuSign. Their Revenue Acceleration platform has generated over $500M for their portfolio, expanding businesses globally. In 2022, the firm closed their third fund, totaling $1B under management.
Swisscom Ventures, the venture arm of Swisscom AG, has invested in 80+ tech companies since 2007. The firm invests between $50M to $100M annually, focusing on sectors like Telco, DeepTech, Cybersecurity, Fintech, and Big Data & AI. Apart from funding, they offer entrepreneurs access to Swisscom’s technical resources and market channels.
Speaking about the investment in Pexapark, Jennifer Webb, Investment Director at Swisscom Ventures says, “We have backed Pexapark because it is uniquely positioned globally to support renewable energy market participants in addressing price volatility and regulatory changes, as this market grows and matures.”
“Swisscom Ventures finds strong alignment with Pexapark’s mission of improving market effectiveness in the renewables industry, an industry seeing investment outpacing that of fossil fuels. When we examined this market, we were impressed by the strength of this team and the depth of their expertise. We are excited to support the Pexapark team as they work together to expand the reach and impact of the company.”
A&G Energy Transition Tech Fund invests in technology companies advancing the energy transition and decarbonisation. It focuses on growth rounds in Europe and globally, co-investing with international funds and corporations. A&G ETTF evaluates investments based on Sustainable Development Goals impacts.
Juan Diego Bernal, MD at A&G Energy Transition Tech fund, says, “In ever more volatile electricity price markets, where it’s increasingly difficult to predict their future evolution, new tools and capabilities are needed to address these complexities and ensure a fair and efficient energy transition for all.”
“In this regard, Pexapark is the undisputed leader in Europe, offering data-driven products and services that provide better insights and transparency into the electricity markets and energy trading through PPAs.”
“In essence, Pexapark assists renewable energy investors and offtakers in making more informed decisions and managing their portfolios in an automated manner. We are very proud to have Pexapark as part of our portfolio of companies and to contribute value to its international growth,” adds Bernal.