node.energy raises €15 million in Series B financing
The Frankfurt-based software company node.energy has raised €15 million in an oversubscribed Series B financing round. The company enables medium-sized companies to cover their electricity needs with direct supply contracts or so-called direct PPAs from wind farms and solar power plants.
With this fresh capital, node.energy plans to become the leading platform for green electricity in the business customer segment in Germany. This mission has convinced renowned investors. The billion-euro DeepTech & Climate Fund (DTCF) and eCAPITAL ENTREPRENEURIAL PARTNERS led the round. eCAPITAL has been financing technology companies in the early to growth phase since 1999 and has also supported energy unicorn 1KOMMA5° at an early stage. Existing investors such as High-Tech Gründerfonds (HTGF), Bitstone Capital, Helen Ventures and BonVenture also confirmed their confidence in the company and participated in the financing.
Dr. Torsten Löffler, Investment Director at DeepTech & Climate Fonds) is delighted that the DTCF is further expanding its ClimateTech portfolio with this attractive growth company: "node.energy impressively demonstrates that the energy transition is opening up new business models and growth prospects for start-ups and investors. Node.energy's customers benefit from very attractive electricity prices thanks to direct procurement from PV plants and wind farms, enabling them to increase their competitiveness."
It is our privilege to continue supporting node.energy with our participation in the Series B financing round,” remarks Mikael Myllymäki, Vice President and Head of Helen Ventures. “As the renewable energy industry matures, so does the demand on the solutions that commercialize the system efficiently. We continue to be impressed by the on-point product offering and professional operations of the company as they continue to scale in this rapidly evolving market.”
The company has now expanded its offering for the next phase of the energy transition. The cost of wind and PV power has been falling for years and is now the cheapest source of electricity, according to a study by the Fraunhofer Institute for Solar Energy Systems (ISE). More and more companies are looking to capitalise on this cost advantage and are switching their energy procurement to direct supply contracts with wind and PV plants, known as Power Purchase Agreements (PPAs). Due to the complex processes involved in the energy industry, this type of electricity procurement was previously only available to very large consumers such as BASF or Amazon. node.energy is now offering PPAs, which are concluded directly with the power plant operators, to medium-sized companies for the first time. The customised combination of green energy producers and consumers is only the first step. The software platform will also be used to manage supply processes, invoicing and the transparent provision of energy data for reporting and controlling purposes. The average savings compared to conventional electricity contracts are between 10 and 25 percent of the actual energy costs. node.energy thus helps their customers to remain competitive and contributes to securing Germany as a relevant business location.
"We are removing bureaucracy and complicated business processes in the supply chain for domestic green electricity. This makes cheap wind and PV power a locational advantage for the German economy," says Matthias Karger, founder and CEO of node.energy.
Hannes Schill, Managing Partner of eCapital, confirms: "node.energy creates a new basis for SMEs to use cost-effective and sustainable electricity. With direct PPAs, SMEs can counteract the increasing price volatility on the energy markets and reliably plan their energy costs. Thanks to its established software business for wind and solar park operators, node.energy is well positioned to meet the needs of SME customers in the PPA-as-a-Service segment and to secure a significant market share in this future field".
For black figures with green electricity
With the Series B funding, node.energy will continue to invest in the development of its platform and the integration of storage solutions within the near future. This expansion will not only create new revenue streams for wind and solar project operators but will also help make the energy transition more cost-effective and sustainable overall.
“Digitalisation and the integration of storage solutions are crucial for a sustainable energy supply," says Karger. “Storage technologies make it possible to use wind and solar power more efficiently, ensuring stable prices and a reliable supply even in times of fluctuating generation.”
Since its founding in 2016, node.energy has become the leading software provider for professional operators of wind farms and solar power plants. Independent power producers such as wpd windmanager GmbH and PNE AG use the opti.node Cockpit software platform to manage and optimise wind and solar projects. The software is currently used by more than 14,000 wind and PV plants, which generate around one-third of Germany's green electricity.