1、Commercial and Industrial Energy Supply Infrastructure2 0 2 4 R E P O R TCommercial and Industrial Energy Supply Infrastructure2Executive SummaryDecarbonizing the commercial and industrial(C&I)sector is an immense and urgent challenge,making it an outsized opportunity for innovative startups.Moreove

2、r,as the sector currently accounts for 40%of final energy consumption in the EU,it plays a crucial role in the European energy transition.However,the heterogeneous nature of C&I businesses hinders standardization efforts,and the transformation in the energy industry presents a dual landscape of chal

3、lenges and opportunities.Factors such as fragmented data,technological hurdles,cost optimization,and compliance intricacies necessitate a comprehensive and holistic approach.Increasingly,though,innovative startups are capitalizing on this challenge and decentralization and digitalization trends,movi

4、ng beyond traditional energy commodity sales to offer novel services to enhance green energy supply for C&I businesses and reduce their dependence on fossil fuels.This report organizes European C&I energy infrastructure and supply into a framework with four categories:energy generation,procurement,c

5、onsumption reduction,and alternative fuels.Asset connectivity and controls,together with administrative,are cross-cutting enablers.The report highlights 157 innovative startups addressing critical C&I needs,such as on-site generation,off-site greenfield projects,challenger utilities,billing,or energ

6、y storage.Ultimately,the report emphasizes how startups have shifted from selling commodities to service-oriented models,driven by decentralized energy adoption facilitated by digitalization and cost optimization.2Executive Summary3Table of Contents4Introduction5Challenges&Opportunities6European C&I

7、 Energy Infrastructure&Supply LandscapeTA BL E OF CO NTE NTS7-9Generate own energyOn-site.7-8 Off-site Greenfield8-99-12Procure green energyRenewable Energy PPA.9 Energy trading.10 Challenger utilities.11 Renewable Energy Certificates.1213Asset Connectivity&Controls 14AdministrativeReporting&Complia

8、nce.1415Consumption reductionFlexible assets.15 Energy efficiency1617Alternative fuelsHydrogen.17Commercial and Industrial Energy Supply Infrastructure4(1)Eurostat2023(2)IAS 2022(3)McKinsey 2023(4)PWC 2021C&I energy demand and supply play a significant role,contributing to over 40%of final energy co

9、nsumption in the EU(1).In our definition,C&I customers refer to businesses and organizations that acquire goods or services for use in production,manufacturing,or other operational purposes.The C&I sector stands out as one of the most carbon-intensive sectors,mainly due to its heavy reliance on ener

10、gy and energy-intensive processes and equipment.At the same time,many businesses are looking to adopt renewable energy technologies.C&I is the fastest growing segment in distributed PV,which saw a 167GW increase from 2019 to 2022(2),and McKinsey projects that the behind-the-meter C&I storage capacit

11、y in the EU will increase by 400GWh from 2023 to 2030(3).To meet net-zero targets,C&I would need to decarbonize more than five times greater(4)than what was achieved over the past years.However,the heterogeneity in C&I businesses makes standardization of services offered and productization complex f

12、or startups operating in this space.To fully realize the decarbonization potential of C&I,a holistic approach is required that considers not only the supply of renewable energy but also reducing fossil fuel demand through electrification,energy efficiency,and other measures.IntroductionCommercial an

13、d Industrial Energy Supply Infrastructure5(5)LCP Delta 2021The energy industry is undergoing a significant transformation,posing complex challenges for C&I customers in managing their energy supply and infrastructure.This shift is driven by the need for efficient energy management,cost optimization,

14、sustainability goals,and compliance with evolving regulatory frameworks.C&I customers face key issues in energy management,including the lack of real-time monitoring,fragmented data across systems,and balancing energy needs in industries like manufacturing.Technological challenges include a lack of

15、data standards,integrating modern solutions with legacy systems such as SCADA systems,and addressing cybersecurity risks in a digitized environment.Cost optimization is another major concern,with inaccuracies in billing,peak demand charges,and inflexible fixed-rate contracts affecting profitability.

16、Challenges&OpportunitiesRisk management is another dimension of the problem due to high wholesale market price volatility(influenced by geopolitical events such as the war in Ukraine).Sustainability targets add complexity,involving the integration of renewable energy sources,achieving carbon reducti

17、on goals,and limited access to affordable solutions.Compliance with dynamic energy regulations demands significant resources and can disrupt operations,with the risk of financial penalties and reputational damage.As businesses look to decarbonize,decentralization and digitalization are significant t

18、hemes for startups.Traditional C&I energy relied on high-carbon energy sources,which were easier to manage.The new C&I landscape is transitioning to renewable power,which is intermittent.This means energy demand must align with supply(unlike fossil fuel-based setups,where supply follows demand).As s

19、ome companies aim to generate power on-site,they become prosumers,leading to decentralized energy and new business models.The evolving renewable energy production increases the need for grid flexibility and makes power wholesale more volatile.This shift allows C&I companies to participate actively i

20、n energy markets.The move towards decentralized energy and innovative business models is transforming C&I products into as-a-service models.Hence,startups catering to C&I customers are transitioning from selling commodities(energy)to offering services(5).Commercial and Industrial Energy Supply Infra

21、structureAlternative Fuels6European C&I Energy Infrastructure and Supply LandscapeOur landscape is segmented based on the needs of C&I customers.One option is to boost the supply of green energy by generating our own and procuring it from renewable sources.The second option includes reducing the exi

22、sting fossil fuel demands through consumption reduction and the use of alternative fuels.In addition,there are horizontal layers that enable both of the above:asset connectivity and control as well as administrative solutions.Based on these two core paths,weve focused on sub-segments that provide mo

23、re granularity around startups solutions that answer the C&I customers needs.In the report,weve highlighted the sectors that we deem the most relevant in addressing the current C&I needs,from on-site generation to energy trading to asset connectivity and control.Below,we introduce the status quo,cha

24、llenges,and opportunities while always providing guidance through our investment thesis for each sub-segment.In total,we have been able to uncover 157 startups that are headquartered in Europe.(Find the complete list of startups here.)AdministrativeBillingReportingGenerate Own EnergyOff-siteOn-siteC

25、onsumption ReductionFlexible AssetsEnergy EfficiencyOthersHydrogenProcure Green EnergyRenewable PPARECEnergy TradingChallenger UtilitiesAsset Connectivity and ControlCommercial and Industrial Energy Supply Infrastructure7(6)NatWest Group 2022(7)OECD 2015(8)RE100(9)EUSolarEnergyStrategy2023While a co

26、nsiderable number of C&I players aim to adopt on-site green energy solutions(1in 6 SMEs intended to generate onsite green energy in 2023)(6),they face challenges due to resource constraints,lack of clarity in the market,and financial limitations.The on-site green energy infrastructure market is stil

27、l in its early stages(7),causing ambivalence among C&I customers about available services,providers,and government incentives.Solar emerges as a primary C&I energy generation asset(8),offering flexibility(modularity)and affordability.In the EU,commercial buildings will probably face a solar obligati

28、on,requiring a fourfold accelerated deployment of solar energy systems(part of The Solar Energy Strategy,which is part of the EUs RepowerEU)(9).Even though there is a strong push from regulators,C&I players lack a streamlined approach,which creates a barrier to starting renewable energy infrastructu

29、re projects.Beyond solar,potential options include wind turbines,geothermal energy,waste heat utilization,and the integration of batteries and EV charging stations(as we describe in“flexible assets”).A comprehensive strategy is needed to support customers in transitioning to sustainable practices.On

30、-site energy operations include sales and financing(advisory),design and planning,installation,and commissioning.SALES&FINANCING(ADVISORY)Companies in the sales category are pivotal in identifying,acquiring,and financing end-to-end energy projects.The challenge lies in achieving repeatability due to

31、 the diverse nature of C&I customers(unlike more standardized B2C sales processes).Often hesitant to invest outside core areas,they can benefit from the as-a-service model(offered by companies like Enviria or Urban Volt),which is price competitive with previous utility tariffs and eliminates upfront

32、 payments(through rentals or off-balance sheet debt structures).DESIGN&PLANNING Installers,integrators,and renewable energy sales companies require tools similar to those in the B2C sector for project design.Facing soft cost pressures,a proper digital tech stack is essential.Automated remote analysi

33、s tools assess the sites potential,while feasibility studies and scenario analysis enable rapid quoting for diverse renewable energy setups(covered by the marketplace model from Voltaro).Cross-asset optimization,including EV charging,heating,generation assets,and batteries,adds complexity,requiring

34、innovative approaches.A trusted tool for accurate energy cost simulations and savings modeling is the vision of companies like Reonic or Gridcog.Generate own energyO N-S I TEOn-siteCommercial and Industrial Energy Supply Infrastructure8(10)Levelized Cost of Electricity(LCOE)is an economic measure us

35、ed to compare the lifetime costs of generating electricity across various generation technologies.(11)Independent Power Producer(IPP)is a non-utility generator,an entity that is not a public utility but owns facilities to generate electric power for sale to utilities and end users INSTALLATION&COMMI

36、SSIONING The initial design phase involves collaboration between renewable energy sales companies,subcontractors,and fulfillment partners.Capacity constraints(blue collar scarcity),prevalent in B2C,are equally challenging in the B2B space,requiring streamlined coordination and digital project manage

37、ment platforms to enhance process excellence and manage soft costs effectively(e.g.,Inrange).Seamless collaboration and data exchange are vital for transparency and progress monitoring through a user-friendly interface.OUR INVESTMENT THESIS Renewables integrations at the C&I site are unstandardized,

38、complex,and time-consuming.In the On-site energy generation sector,we identify the following promising solutions:1.Embedded financing option providers that allow installers off-balance sheet project financing 2.Startups can efficiently collect public data,seamlessly connect to BMSs,create digital tw

39、ins of buildings,and calculate optimal upgrade options without extensive human intervention.3.Project management toolkit,accessible through SaaS platforms or integrated within comprehensive solar providers(end-to-end service providers),in efficiently managing the entire solar value chain and streaml

40、ining workflows.Generate own energyO N-S I TEAs an alternative to on-site energy generation(behind the meter),companies can opt to generate and use power sourced from another location,which often is referred to as off-site greenfield projects.Suppose a companys power needs to surpass on-site capacit

41、y or prefer buying from a larger project to reduce the levelized cost of electricity(LCOE)(10).In that case,they can choose a project that meets their requirements elsewhere.This could be from an independent power producers(IPP)(11)portfolio or collaborating with a third party to develop its own pro

42、ject(via co-ownership models like Ripple).Following that,the client and partner define the key contract terms,often coupled with a structured Power Purchase Agreement,which is discussed in the next section.O FF-S I TE G R EE N F I EL DOff-siteCommercial and Industrial Energy Supply Infrastructure9(1

43、2)Bloomberg2023Generate own energyFor customers to explore available options,location intelligence,and project development platforms that help them understand the feasibility of off-site energy generation(marketplace for sourcing projects,like Caeli Wind or Glint Solar)are crucial.Project originatio

44、n can be challenging,especially when specific customer requirements complicate projects.OUR INVESTMENT THESIS Startups in this sector need help to thrive due to extended project cycles,unpredictable revenue in the off-site energy generation market,and substantial capital requirements to develop proj

45、ects.Additionally,the off-site power greenfield approach competes with PPA startups,which benefit from more vital customer touchpoints(due to the recurring nature of contracts),making them more dominant and lucrative in the future.O FF-S I TE G R EE N F I EL DProcure green energyPower Procurement Ag

46、reements(PPAs)are contractual arrangements between a producer of renewable energy and a buyer for a fixed or variable price per megawatt-hour(MWh).These agreements,varying in structure and location,are crucial for businesses aiming to meet sustainability targets and hedge renewable energy risks.In a

47、 significant shift,over 10%of the global increase in renewable electricity capacity comes from such agreements(12),highlighting their growing popularity and importance in the C&I sector.However,PPAs are complex,requiring a deep understanding of legal and risk factors,and involve intricate aspects li

48、ke market-conditioned validation,lifecycle payments,and environmental risk charges.The evolving regulatory landscape is fostering innovative PPA structures and broader adoption.This trend has led to the emergence of startups providing tailored PPA solutions that are showcased in real-time,going beyo

49、nd mere modeling and forecasting.In the market,we see startups acting as a form of advisor or outsourced procurement division for corporate and industrial clients(e.g.,Reel or Pexapark),as well as startups operating as a marketplace for PPAs(e.g.,Squeaky or Renewable Exchange).OUR INVESTMENT THESIS

50、While PPA startups certainly benefit from advanced modeling and forecasting capabilities for demand and supply profiles,they require tailor-made contracting to capture long-term value,especially if several parties are involved.We see purely modeling,forecasting,and platform approach as a rather thin

51、 value proposition.R EN EWA B LE EN ERGY P PACommercial and Industrial Energy Supply Infrastructure10(13)ION2023Procure green energyEnergy trading involves the buying,selling,and transferring of energy commodities,with markets like the wholesale and grid markets further divided into futures,day-ahea

52、d,and intraday markets.This sector faces challenges(13)such as market volatility,regulatory complexities,and supply intermittency from renewable sources.These challenges lead to price fluctuations and risks traditionally absorbed by suppliers but now impacting C&I customers.As a consequence,C&I cust

53、omers have to become proactive in the energy market.Modern approaches,leveraging AI for predictive analytics,offer significant opportunities to tackle these challenges and optimize trading by analyzing extensive data,including weather conditions,energy demand and generation,and much more.In the mark

54、et,we see new trading houses(e.g.,twig.energy),enabling toolboxes for C&I customers trading strategies(e.g.,Dexter Energy),trading specifically for assets such as batteries(e.g.,Suena)as well as startups integrating the C&I customers connected assets into the market(e.g.,Frequenz).Further,some start

55、ups(e.g.,Esforin)unlock flexibility by automatic algorithmic trading on the intra-day markets and modern energy exchanges(e.g.,ETPA and Piclo)that allow them to facilitate large trading volumes at high speed.OUR INVESTMENT THESIS Volatility in energy markets creates rewards for companies to access a

56、nd trade flexible assets.In addition,energy markets are moving to more near-term and high-frequency trading,which creates additional opportunities for startups to provide the tools to participate in this shift.Within energy trading,we therefore see several promising solutions emerge:1.Companies allo

57、wing for integrating energy markets and multiple DER assets(revenue stacking over single use case)into energy supply agreements expand the access to the best price and optimize the demand and supply of C&I customers.2.Startups offering solutions that enable a broader spectrum of energy assets,beyond

58、 those meeting stringent grid control criteria,to participate in intraday markets.3.Digital trading platforms are the infrastructure that offers traders intraday flexibility and connectivity with energy users such as C&I companies at high speed.EN E RGY TR A DI N GChallenger UtilitiesPPARECEnergy Tr

59、adingCommercial and Industrial Energy Supply Infrastructure11(14)Reuters2023Procure green energyThe current landscape has seen a surge in startups focusing on the residential(Tibber,Greenely,etc.)and multi-tenant space(Einhundert,etc.)space to become their de facto utility.However,fewer startups hav

60、e ventured into providing energy services for C&I customers,who rely primarily on traditional energy providers(14).The war in Ukraine has caused a spike in energy prices,leading to a 40%increase in markets like Germany and making fixed contracts untenable for these providers.This shift has forced ma

61、ny C&I customers to rely more on their own on-site power production,making their energy needs less predictable and altering the landscape of traditional utility contracts as an opportunity.This change presents a unique opportunity for startups to step in and offer integrated services,allowing C&I cl

62、ients to become their own utility.Innovative startups like Frequenz,Tem,and others are replacing conventional energy agreements with renewable energy contracts that can include dynamic tariffs beyond the predictability of static PPA solutions.Unlike the high churn rate in the B2C sector,energy contr

63、acts with C&I customers tend to span multiple years,which provides stability.However,these startups need to be able to create stand-out technical products that allow them to navigate the complexities of integrating flexible assets into the intra-day trading market to diversify their revenue streams

64、beyond fixed energy contract fees.OUR INVESTMENT THESIS Companies that allow C&I customers to become their own de facto utility by providing one-stop-shop-solutions based on their flexible energy generation and storage capabilities together with access to grid energy will be able to prevail if they

65、integrate the capability of trading said flexibility on the intraday market.C H A LLE N G ER U TI L I TI E SCommercial and Industrial Energy Supply Infrastructure12(15)Energylink 2023Procure green energyRenewable Energy Certificates(RECs)are market-based instruments certifying that the bearer owns o

66、ne megawatt-hour(MWh)of electricity generated from renewable energy sources(15),which can then be traded as a commodity.The REC market includes a wide range of participants and faces challenges in certificate authenticity,traceability,and pricing volatility.While businesses often purchase RECs to cl

67、aim renewable energy use,this approach is criticized for greenwashing,as it doesnt always reflect actual renewable energy consumption.To address this,first movers like Google and Microsoft are buying into an hourly tracking system for RECs,which provides more accurate data,including the exact time,l

68、ocation,and kind of energy produced.Companies like FlexiDAO,Zerolabs,and Granular Energy are leading in this space,using technologies such as blockchain and other technologies for better transparency that allow for the issuance of hourly,location-based certificates.On the other hand,we see the REC t

69、rading/buying side,which is hindered by the domination of over-the-counter trading and the cumbersome regulatory aspect of different geographies in a relatively small market that is not as attractive for startups to enter.R EN EWA B LE EN ERGY C ERT I F I CATE SOUR INVESTMENT THESIS To scale,solutio

70、ns have to match energy consumption with renewable energy production location-based by providing digital tags on an hourly basis.To ensure transparency and authenticity,these solutions should include blockchain technology without affecting the consumers operations,meaning they should not require adv

71、anced training or knowledge of blockchain to use the product.Commercial and Industrial Energy Supply Infrastructure13(16)IEA2023(17)McKinsey2023Asset Connectivity&ControlsAsset connectivity and control are vertically integrated as they are essential layers both in increasing the supply of green ener

72、gy and reducing the demand for fossil fuels.Asset connectivity and control are crucial in the energy sector,focusing on managing and optimizing distributed renewable energy assets(DERs)and other controllable systems like batteries,furnaces,and other flexible assets.This is key in enhancing energy ef

73、ficiency and reliability in corporate and industrial settings,with an increasing trend of companies generating their own energy.Specifically,from 2019 to 2022,there was a significant growth in solar PV installations,and a shift towards on-site energy generation and electrification is rendering tradi

74、tional energy supply models obsolete(16)(17).The integration of various DERs and ensuring seamless communication between different asset types poses challenges,highlighting the need for effective asset connectivity and control solutions.The opportunity for C&I customers is a setup that enables the e

75、nterprise to produce and regulate its power,reducing reliance on the external electricity grid,a setup often known as a microgrid.These localized grids,which can operate autonomously or connect to larger grids,incorporate technologies like photovoltaics and batteries that are equipped with APIs and

76、control systems that link to software for detailed energy insights.The management of these interconnected systems requires advanced technologies like AI to handle real-time data,including weather patterns and energy usage and generation.Companies like Frequenz and Ecoplanet are at the forefront,adju

77、sting distributed resources in response to energy demand fluctuations.OUR INVESTMENT THESIS Connecting and controlling assets is a key infrastructure layer to enable many additional revenue streams;however,it still needs to be uncovered if there is enough value in a stand-alone product versus as a m

78、ust-have feature in other applications.Asset Connectivity and ControlsCommercial and Industrial Energy Supply Infrastructure14(18)European Commission 2023AdministrativeEarlier this year,the European Commission took a major step by making significant changes to the EU Energy Efficiency Directive.This

79、 revision places a renewed emphasis on energy efficiency.Notably,energy management systems will be mandated for large energy consumers,marking a fundamental shift in energy governance.But this directive extends its reach to all enterprises,including SMEs,where those exceeding an annual energy consum

80、ption of 85 terajoules(TJ)will be required to implement an energy management system,with energy audits mandated for those surpassing the 10 TJ threshold(18).In the UK,energy-related regulations such as the Climate Change Act,Energy Performance Certificates(EPCs),and the Energy Savings Opportunity Sc

81、heme(ESOS)carry particular significance for SMEs as they outline the specific obligations and responsibilities that these businesses need to follow in terms of reporting and compliance.Energy reporting solutions simplify the auditing process by collecting data on energy usage,focusing on factors lik

82、e lighting,heating,and air conditioning,and revealing areas where energy consumption can be reduced.In the first instance,these solutions offer a variety of social,environmental,and financial benefits.In the long term,energy audits contribute to lower consumption,reduced energy costs,extended equipm

83、ent lifespan,and ensure compliance with regulations,aligning businesses with growing environmental expectations and the pursuit of sustainability.OUR INVESTMENT THESIS The industry is currently experiencing a digital transformation,embracing innovative solutions that boost efficiency,accuracy,and su

84、stainability.However,startups focused on reporting and compliance will struggle to effectively navigate the complexities of varying regulations and non-legislative reporting preferences,hence impacting their operational expansion on both regional and global scales.As legislation consolidates,the mar

85、ket will open up to machine learning-driven,data-focused specialized solutions that can adequately respond to current and future legislation beyond regional boundaries.R EP O RTI N G&C OM P LI A N C EReportingBillingCommercial and Industrial Energy Supply Infrastructure15Consumption reductionThe glo

86、bal move to sustainable energy requires adequate energy storage to address renewable source intermittency.Long-duration energy storage(LDES)is vital for enhancing grid reliability,integrating renewables(19),and utilizing intelligent battery management software in smart grids,aiding commercial and in

87、dustrial customers in reducing energy costs and promoting wider adoption of renewables.Current energy storage technologies,primarily lithium-ion batteries,grapple with challenges like limited storage duration,high costs,environmental concerns,and safety issues,while emerging technologies like vanadi

88、um redox flow batteries and gravitational storage face scalability and environmental constraints,hindering widespread adoption(20)(21).Despite challenges,the energy storage sector sees a 7%rise in VC funding for European energy storage in 202322,reflecting its potential for growth akin to the histor

89、ical trajectory of lithium-ion batteries,indicating a path towards a carbon-free future(23).To overcome these hurdles,innovative solutions are emerging,including startups exploring solid-state and sodium-based batteries,developments in metal-air batteries,gravitational storage technologies,and advan

90、cements in chemical and mechanical storage like compressed air energy storage(CAES)and Sand/Molten-Silicon batteries(24)(25).These solutions target the limitations of current technologies,aiming to provide longer storage(26)durations,enhanced safety,and improved scalability.Examples include Energy D

91、ome and A2As agreement to build CO batteries in Italy for long-duration storage,Tiamats development of salt-based batteries in France(27),Gravitricitys trial of gravitational storage in Scotland(28),and Polar Night Energys deployment of the worlds first commercial sand battery in Finland,storing ele

92、ctricity in sand as heat for on-demand use(29).OUR INVESTMENT THESIS The focus should be on startups prioritizing key performance indicators(KPIs),including storage durations exceeding 12 hours to surpass lithium-ion limitations.Achieving a cost per kWh stored below$100 is crucial for competitivenes

93、s,given lithium-ions traditional cost of around$100 per kWh30.Technologies should be favored with 20,000+charge/discharge cycles for longevity and economic viability,emphasizing scalability,safety,and sustainability while minimizing reliance on critical minerals for maximum return on investment(31).

94、F L EX I BL E A S S E T S(19)IEA 2020(20)DOE 2023(21)Nature Energy 2023(22)Clean Energy Finance Forum 2023(23)CTVC 2023(24)Advanced Energy Materials 2023(25)Science 2017(26)Power Technology 2023(27)Clean Energy Finance Forum 2023(28)Energy Storage News 2023(29)Polar Night Energy 2023(30)McKinsey 202

95、3(31)BloombergNEF 2023Flexible AssetsCheesecake EnergyCommercial and Industrial Energy Supply Infrastructure16Consumption reductionEnergy efficiency aims to reduce the energy required to provide products and services.It is about doing more with less because the greenest kWh is the one not used.The I

96、nternational Energy Agency estimates that energy efficiency improvements can deliver a third of the energy-related emission reductions needed to reach the 2050 Net Zero Scenario(32),making it a key decarbonization strategy for C&I players as one of the largest emitting sectors.Further,current EU reg

97、ulations require HVAC building energy demand to be reduced by 18%by 2030 and require a building automation and control system to be in place by Jan 2025(33).Cost considerations also strongly drive C&I energy efficiency,especially in hard-to-abate industrial sectors(34).To achieve progress,companies

98、have a wide array of solutions available,all driven by advanced technologies and data-driven insights.Real-time monitoring and analytics are at the forefront,allowing C&I customers to gain precise visibility into their energy usage patterns and identify inefficiencies or anomalies.This data can then

99、 be harnessed to implement proactive energy-saving measures.Additionally,energy modeling and optimization SaaS tools can create predictive models that pinpoint areas for energy optimization.For commercial buildings,solutions might include taking small steps,such as choosing LED light bulbs and energ

100、y-efficient appliances or smart thermostats(e.g.,Vilisto),more significant efforts,such as upgrading insulation and weatherization(35),or installation of advanced building energy automation and control systems(e.g.,Dabbel;Infogrid;xWatts).Innovative energy management systems leveraging AI-based pred

101、ictive and adaptive control can also help reduce energy consumption and waste in the industry(e.g.,Sensorfact).Furthermore,predictive,intelligent maintenance can help customers prevent unplanned downtime and optimize the performance of production assets(e.g.,Distance;Jungle.ai).EN E RGY EF F I C I E

102、N CY(32)IEA 2023(33)EU Green Deal2022(34)McKinsey2010(35)EESI 2022OUR INVESTMENT THESIS We believe a key aspect for these startups is to provide plug-and-play solutions that allow for customers to get onboarded immediately while keeping initial costs low by limiting CAPEX requirements for immediate

103、ROI.This approach allows customers to see immediate benefits from energy-saving measures,which is a must in a competitive field with high energy costs and low margins.Energy EfficiencyCommercial and Industrial Energy Supply Infrastructure17Alternative fuelsThe hydrogen landscape is currently marked

104、by a diverse array of hydrogen types,each with varying environmental and sustainability impacts.At the heart of this lies the challenge of transitioning from grey hydrogen derived from fossil fuels to hydrogen derived from renewable resources.Today,not all steps of the low-emission hydrogen value ch

105、ain are running at a commercial scale.Green hydrogen production startups have always been the most prominent in the innovation space.Some existing electrolyzer technologies,mainly PEM and Alkaline,are at a stage ready to deploy in projects and are attracting later-stage investments.However,midstream

106、 technologies addressing the dislocation of demand and supply centers still need a push to reach economic viability.Co-location of production and consumption centers is currently the lower-cost approach.That being said,we see a shift to developments in infrastructure and transportation,allowing the

107、movement of hydrogen from a low-cost production center,for example,Australia or the Gulf,to be consumed in Japan,the US,etc.Dozens of European startups are working on cleaner hydrogen production,e.g.,Berlin-based Enapter,whose AEM electrolyzer,transforming water and renewable energy into green hydro

108、gen,is very promising.OUR INVESTMENT THESIS The main focus in the market is to bring the cost of green hydrogen down.Many startups and incumbents are looking into bringing efficiency up and capex down;however,this is driven mainly by the cost of electricity.Furthermore,we expect to see significant p

109、roduction in countries rich in low-cost renewables and,hence,more innovation addressing the dislocation of supply and demand centers.However,the current landscape indicates that large-scale commercial availability of hydrogen,especially green hydrogen for C&I customers,remains a goal yet to be reali

110、zed,with many projects relying on public funding and maintaining a pilot character.H Y DROG E NHydrogenPlug and Play Tech Center is a leading innovation platform and one of the most active early-stage VC firms globally,with multiple success stories and 30+unicorns in the portfolio,including PayPal,H

111、oney,N26,and Einride.Headquartered in Silicon Valley,Plug and Play invests across more than 20 industries.Their European mobility offices are located in Stuttgart,London,Modena,and Gothenburg.AB OUT THE AU TH O R SDiego Mendez Senior AnalystEllen Smeele AssociateZeina Hegazy Program InternMoritz Mue

112、ller AnalystSET Ventures focuses on innovation leaders who are transforming the energy system and pioneering the future of energy in distributed infrastructure,digital utilities,buildings,mobility,and industry,as well as relevant enabling technologies.They look for fast-growing companies with strong

113、 digital DNA seeking(late)seed and Series A funding that can demonstrate market traction.Future Energy Ventures(FEV)is a VC and collaboration platform investing in world-class start-ups shaping the future energy landscape.Founded in 2016 with 50 investments to date,FEV is now investing from an SFDR

114、Article 9 Fund targeting Series A and B investments.They focus on sustainable energy,smart cities,and frontier technologies designed to accelerate the energy transition and decarbonize our societies.With hubs in Germany,Tel Aviv,and Silicon Valley,FEV provides financing and scaling opportunities for

115、 high-potential companies creating digital and scalable climate technologies with the power to disrupt traditional energy supply chains and redefine the energy landscape and customer solutions for about 50 million customers.Rebecca Roser AssociateDr.Till Stenzel PartnerLucas Fatas Visiting AnalystMaciej Lehmann Investment Associate Nathalie Helles Milde Investment Associate Jan Palasinski PartnerCommercial and Industrial Energy Supply Infrastructure-2 0 2 3 R E P O R T -