Climate tech
Q2 202427.06.2024

Smart grids (Q2 2024)

Picture of Éanna Kelly

Éanna Kelly

at Sifted

Climate tech investors have really cottoned onto the opportunity of grid transformation in the last couple of years.

This is because the grid is undergoing a massive shakeup. Unlike power generated by fossil fuels — which can be turned on and off to meet demand — renewable energy sources like wind and solar produce power intermittently: when the wind is blowing and the sun is shining. That means electricity grids need to be able to balance different power inputs to ensure stable supply.

To combat this, new smart grids use a combination of software and hardware to match the supply and demand of electricity in real time to maintain a stable, reliable power supply.

Companies are working on tech that changes elements of the grid itself. Spanish company IONATE, for example, provides next-generation transformers that monitor the voltage to a minute level and can dynamically control it based on the supply of electricity at a given time.

VCs piled a record $1.5bn into grid technologies in Europe in 2023; though that figure has fallen in the first half of 2024. Most of that money has gone into batteries, typically a large capex investment (and for this reason, existing energy companies will have an upper hand here).

So while startups are making headway, we’re likely to see more of them partner with established utility or grid operating companies to build out their tech.

20 startups to watch

  • Fever logo

    Sifted score

    7.83
    -

    Fever

    • Strong investor(s)
    • Serial founder(s)

    • Year founded

      2022

    • HQ

      Stockholm, Sweden

    • Latest round

      Seed
      €10m / Feb 2024

    • Total funding

      €11.5m

    View company profile
  • Terra One logo

    Sifted score

    7.35
    -

    Terra One

    • Strong investor(s)
    • Serial founder(s)
    • Hiring

    • Year founded

      2022

    • HQ

      Berlin, Germany

    • Latest round

      Seed
      €7m / Apr 2024

    • Total funding

      €7m

    View company profile
  • Reel logo

    Sifted score

    7.3
    -

    Reel

    • Serial founder(s)
    • Hiring

    • Year founded

      2020

    • HQ

      Copenhagen, Denmark

    • Latest round

      Seed
      €5m / Jan 2024

    • Total funding

      €7.3m

    View company profile
  • Ecoworks logo

    Sifted score

    7.17
    -

    Ecoworks

    • Strong investor(s)
    • Serial founder(s)
    • Hiring

    • Year founded

      2018

    • HQ

      Berlin, Germany

    • Latest round

      Early VC
      €40m / Dec 2023

    • Total funding

      €79.6m

    View company profile
  • Blixt logo

    Sifted score

    6.77
    -

    Blixt

    • Strong investor(s)
    • Serial founder(s)
    • Hiring

    • Year founded

      2018

    • HQ

      Stockholm, Sweden

    • Latest round

      Seed
      €5m / Mar 2024

    • Total funding

      €10m

    View company profile

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