tem., a AI transactions platform that enables UK businesses to buy energy directly from renewable generators for less than the cost of traditional fossil fuels, has secured an €12.4 million Series A round, accelerating its mission to reshape the UK’s energy landscape.
This investment, led by European VC Atomico, with participation from existing investors AlbionVC and Revent, and joined by notable angels Holly and Sam Branson and Wise CTO Harsh Sinha and CPO Nilan Peiris, brings tem.’s total funding to €15.4 million and positions the company at the forefront of the UK’s urgent transition to sustainable energy. As part of this round, Atomico Partner Terese Hougaard will join tem.’s board.
tem.’s growth comes as the global economy scrambles to meet 2050 climate targets. Skyrocketing oil and gas prices have crystallised the business need to find alternatives to fossil fuels. With UK businesses facing electricity price hikes of 63% and gas price increases of 124% between Q3 2021 and Q3 2022, the need for affordable, stable energy sources has never been more pressing.
“Small and medium-sized businesses are critical in tackling climate change, and are desperate for energy they can trust after seeing their bills soar by 124% during the recent energy crisis. We built tem. so that any UK business can get affordable energy while powering the clean energy transition from their doorstep,” said Joe McDonald, tem. CEO and co-founder.
tem.’s proprietary algorithm is revolutionising the energy market by directly matching businesses with renewable energy generators in real-time. tem.’s AI engine forecasts fluctuations within energy supply and demand, processing 1.8 billion matches every second. This innovative approach not only bypasses the inefficient wholesale market but also promises to save businesses up to 25% on their energy bills while providing 100% traceable, renewable energy.
Among tem.’s customers is iconic British racing track Silverstone. Stephane Bazire, Head of Business Sustainability at Silverstone said: “working with tem, we are now paying less for fully traceable renewable energy, while putting more money back into the pockets of generators, hugely helping our business reduce its carbon footprint – which is a high priority for our company.”
tem.’s platform is uniquely primed for this growth, connecting businesses directly with the burgeoning network of over 22,000 small, medium, and large renewable generators across the country. This newly decentralised supply is being created from everything from large-scale wind farms to family-owned solar parks and local weirs generating hydropower.
But to date only megacorporations – able to negotiate complex Power Purchase Agreements (PPAs) directly with these generators – have been in a position to truly benefit. 99% of UK businesses have no option but to purchase energy from the wholesale market, the same way of procuring energy since the 80’s. This is an opaque, inefficient and volatile market, where middlemen capture £1.65bn each year in transaction fees at the expense of the end customer, and businesses lack meaningful transparency or control over their energy mix.
Atomico partner Terese Hougaard added: “tem. has not only seen impressive growth to date; the future potential is massive with $1trn in direct renewable energy transactions to unlock globally. With their deep energy experience and expertise from Limejump and Shell, nobody is better placed than Joe, Jason, Ross and Bartek to seize this opportunity.”
Read the orginal article: https://www.eu-startups.com/2024/09/london-based-tem-nabs-e12-4-million-to-make-renewable-power-affordable-for-uk-businesses/
