Klima, an energy transition fund backed by Spanish investment bank Alantra, has led a €23 million funding round for Amsterdam-based Dexter Energy. The Dutch climate technology firm will utilize this investment to accelerate the development of a machine-learning tool designed for short-term power trading, further promoting the energy transition.
According to the European Commission, the share of renewable energy in electricity generation in Europe is projected to rise from 47% in 2022 to 70% by 2030. However, Dexter Energy highlights several challenges faced by green energy producers, including market volatility, unpredictable weather patterns that cause price fluctuations, and decreasing traditional subsidies.
To address these issues, Dexter Energy has developed an AI-driven trading platform that assists energy companies in operating within the volatile European electricity markets. The platform balances the electricity grid, minimizes costs associated with balancing, and optimizes the use of solar and wind resources, as well as battery storage.
Iñigo Echaniz, a partner at Klima, emphasized the need for innovative solutions in the energy sector. He stated, “Energy markets are very complex. Many factors such as weather forecasts, resource availability, energy prices, and grid limitations affect them. By integrating this data with AI, we can unlock substantial value for renewable assets.”
Founded in 2017, Dexter Energy currently collaborates with over 80 energy companies, including Centrica Energy in the UK and Pure Energie in the Netherlands. The company plans to expand its battery trading solutions across Europe, starting with the Netherlands, before moving into other key markets.
Luuk Veeken, CEO and founder of Dexter Energy, expressed enthusiasm about the partnership with Klima. He remarked, “We share the belief that AI is essential for a renewable energy-powered electricity grid. This investment will allow us to scale our technology and redefine how clean energy is traded in Europe.”
Klima, which has a total fund size of €210 million, primarily invests in technology-driven companies that can facilitate the transition to net-zero emissions in Europe and the United States. This investment in Dexter Energy marks Klima’s ninth investment, as it aims to build a portfolio of twelve companies. Typically, Klima invests between €8 million and €12 million in each firm over a five-year period.
Mirova, a Paris-based firm participating in the funding round, focuses on sustainable investing. Anne Boulet, an investment director at Mirova, noted that Dexter Energy aligns perfectly with their investment criteria. Mirova aims to invest between €5 million and €20 million in each of its portfolio companies, also over five years.
Mirova’s existing infrastructure portfolio has financed more than 7 gigawatts of renewable energy assets in Europe, creating synergies with Dexter’s initiatives. Boulet mentioned, “Working closely with our energy infrastructure team provides us with a deeper understanding of market dynamics and the challenges renewable energy companies face. This knowledge will be beneficial for Dexter as we collaborate.”
As the renewable energy sector continues to evolve, investments like those from Klima and Mirova will be crucial in driving technological advancements and improving trading mechanisms to support the transition to a cleaner energy future.
