Swell Energy Raises $120 Million for Solar, Battery VPP Program


Ben Parton

Swell Energy has raised $120 million to additional its digital power plant (VPP) applications. The spherical was led by SoftBank Vision Fund 2 and Greenbacker Development Opportunities Fund I LP with participation from an Ares Infrastructure Opportunities fund and Ontario Power Generation Pension Fund.

The funding will help Swell’s improvement of 600 MWh of VPPs by way of the deployment and aggregation of 26,000 energy storage techniques situated at houses and companies throughout the United States. Swell VPPs present a wide range of grid service capabilities by way of tasks in utility territories throughout Hawaii, California and New York.

Swell creates VPPs by linking utilities, clients and third-party service suppliers collectively, and by aggregating and co-optimizing distributed energy assets by way of Swell’s GridAmp software program platform. In explicit, working with utilities, Swell delivers worth to its community of shoppers by way of invoice financial savings, GridIncome and energy safety, making a cohesive community of solar-powered batteries that helps total grid reliability and stability, whereas doubtlessly decreasing grid working prices.

“By coordinating distributed energy resources across the grid to intelligently meet fluctuating demand, Swell’s AI- and machine learning-driven platform helps address a major challenge of the energy transition, while also lowering customers’ bills,” says Ben Parton, director at SoftBank Group. “We are excited to support Swell’s team as they accelerate clean energy adoption.”

“Swell’s business model is an innovative application of existing technology directly solving two large issues plaguing the grid and renewable energy adoption: transmission and load shifting,” states Ben Baker, managing director and principal of Greenbacker Development Opportunities Fund. “We couldn’t be more pleased to partner with Swell, its impressive management team, and the existing investor base. The company’s three business verticals – Grid Services, Finance, Development – are mutually beneficial, and together will swiftly expand the proliferation of renewable resiliency, providing value to both customers and utilities.”

In addition to the challenge finance alternatives with present utility partnerships, Swell can also be pursuing improvement in in any other case underserved markets the place vital grid companies are essential to strengthen and modernize infrastructure. In areas the place native grids should evolve to accommodate extra renewable energy and electrical automobile adoption, Swell’s VPP applications can present elevated grid flexibility whereas precluding important funding in new fossil gas technology.

For these utilities, Swell will increase the inventory of dispatchable behind-the-meter property, aggregates these property for grid companies participation, and dispatches distributed energy assets to create ongoing worth for the grid, all whereas creating an improved expertise for the shopper. Swell analyzes and identifies every area’s distinct utility wants and grid stresses, then delivers the suitable grid companies by way of versatile energy storage options, serving to with load administration, renewable energy balancing and ancillary grid companies.

“Swell is at the forefront of executing on the promise of virtual power plants, which we believe can be one of the most important and necessary advancements in smart grid service technologies available,” feedback Keith Derman, associate and co-head of the Ares Infrastructure Opportunities technique. “Ares has been working with Swell since its Series A raise in 2019, and we are excited to continue building upon that relationship with this follow-on investment.”

“Utilities and investors have understood the importance of virtual power plants for some time now; this funding further signals that the capital markets see tremendous value in this new asset class,” provides Suleman Khan, CEO of Swell Energy. “Virtual power plants are the key to a cleaner energy future at scale. Through the use of our GridAmp software, we are dedicated to enabling an accelerated transition to a carbon-neutral future compatible with the needs of both utilities and the communities they serve.”

This newest financing spherical brings Swell’s whole fairness capitalization up to now to $152 million, together with prior investments made by an Ares Infrastructure Opportunities fund, Aligned Climate Capital, Third Sphere and others. Citi acted as sole placement agent on this transaction.


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