Swiss-based Pexapark raises €20M to provide the OS to buy, sell and manage renewable energy

Zurich-based enterprise software and advisory company specialised in renewable energy, Pexapark announced on Tuesday, September 26, that it has secured €20M in a Series C funding round led by global tech investor Telstra Ventures. 

Swisscom Ventures and the A&G Energy Transition Tech Fund joined the startup’s late-stage financing effort. Serving the green energy market since 2017, Pexapark says the new funding will help expand its human resources and meet global demands with novel offerings. 

“This fresh injection of capital takes us into the next exciting phase of our mission to equip renewable energy players around the globe with the expertise, processes, and systems to thrive amid evolving market dynamics,” says Michael Waldner, CEO of Pexapark. 

Pexapark’s products range from trusted reference prices for power purchase agreements (PPAs) to its signature management software, PexaOS. Over 200 European green energy companies have adopted Pexapark’s services, including well-known Octopus Energy Generation and EDF Renewables.

PPA is important for green energy market

A PPA is a long-term contract between an electricity supplier and a customer that may last five to 20 years. During that period, customers purchase energy at a pre-negotiated price range. 

Albert Bielinko, partner at Telstra Ventures, says PPAs are essential in ensuring that new green energy projects receive the necessary financing. 

“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,” says Bielinko.

PPAs are also critical in helping investors within the green energy sector navigate the complexity of the market. It includes the ever-evolving regulatory environment.

“In essence, Pexapark assists renewable energy investors and off takers in making more informed decisions and managing their portfolios in an automated manner. We are very proud to have Pexapark as part of our portfolio of companies and to contribute value to its international growth,” says Juan Diego Bernal, managing director at A&G Energy Transition Tech Fund.

European PPA market will grow significantly

In March, Pexapark COO Luca Pedretti said the European market might see up to 200 new PPAs this year. A move to shorter-term agreements and increased hybrid PPAs for co-located assets spur market growth. There have been more collaborations between energy traders and corporations, too.

Despite the market potential, some issues may hamper new deals, such as rising balancing costs and credit risk. Pexapark says robust data, like the one its platform provides, can assist the industry in ensuring new green energy deals go through. 

“These capabilities are crucial not only for competitively pricing energy but also for safeguarding capital by effectively managing exposure to market risks,” says Waldner.

The International Energy Agency notes that renewable energy supplies increased by eight per cent last year. Swisscom Ventures investment director Jennifer Webb also says the investment in the green energy sector has begun to outpace the fossil-fuel counterpart.

Experts have called for stronger efforts to transition toward green energy. The EU, for instance, has crafted various new initiatives to speed up the transition in this sector. It aims to increase the renewable energy sources to at least 42.5 per cent by 2030.