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Today, Pexapark, headquartered in the thriving hub of Zurich, took to the stage to trumpet an impressive €20 million garnered in their latest Series C fundraising endeavour. This monumental financial uptick signals a robust extension of the company's already influential arm in Power Purchase Agreement (PPA) analytics, advisory services, and cutting-edge portfolio management solutions.
Masterminded by global tech investment powerhouse Telstra Ventures, the fund fiesta also attracted financial attention from Swisscom Ventures and A&G Energy Transition Tech Fund. The newly acquired capital is earmarked to catapult Pexapark into an unprecedented realm of growth, particularly within the burgeoning universe of renewable energy PPAs.
Why PPAs? These financial instruments enable organizations to strike a long-haul deal directly with eco-friendly power generators. Imagine bypassing market fluctuation and enjoying the stability of a guaranteed price for years to come, all while curbing your carbon footprint!
Pexapark said the cash injection will give it "significant impetus" to help more customers navigate the fast-expanding renewables PPA market.
PPAs allow companies to sign long-term contracts directly with renewable energy generators, providing them with long-term price certainty and the ability to drive down their emissions.
"The renewable energy market is experiencing significant and sustained growth, driven by its cost competitiveness and robust political support," said Michael Waldner, CEO at Pexapark. "Despite this, renewable energy investors face a complex set of challenges - from market opacity to price volatility and regulatory pressures. In this dynamic landscape, possessing market intelligence and energy risk management capabilities has become critical. These capabilities are crucial not only for competitively pricing energy but also for safeguarding capital by effectively managing exposure to market risks."
Waldner left no stone unturned when stating the company's forthcoming objectives: "We're taking this fresh capital injection to amplify our global mission, furnishing key players in the renewables sector with the know-how, workflows, and tech infrastructure to not just navigate but excel in this ever-fluid market space."
What's on Pexapark's ever-expanding horizon, then? Expect advancements in their proprietary PPA pricing benchmarks across Europe, coupled with fine-tuning their existing PPA consulting and energy risk management software, PexaOS.
According to company intel, their suite of products and services has already won the endorsement of over 200 businesses spanning renewable energy, energy storage, and green hydrogen sectors. The list reads like a who's who of the industry's top dogs: think Octopus Energy Generation, Statkraft, BP, EDF Renewables, and Covestro, to name just a few.
Pexapark added that currently, it is offering price transparency to 19 markets and has supported more than 30GW of PPA deals to date. It said PexaOS is now used by Independent Power Producers (IPPs) and funds to manage 13GW of renewable energy assets across Europe actively.
"We invested in Pexapark because we believe they are the global leader in energy risk management software for investors in renewable energy, as well as the leading source of market intelligence for renewable PPAs," said Albert Bielinko, partner at Telstra Ventures, which led the funding round.
"Signing PPAs is crucial to ensure new renewables projects can be financed, and Pexapark provides a critical service that makes this process more efficient. As the world transitions to renewables and government subsidies are gradually removed, we believe Pexapark's services will be indispensable. Pexapark also has an iconic team who structured the first PPAs in Europe many years ago."