The Amsterdam-based company Dexter Energy raised €10.5 million in Series B funding for its short-term energy trading solutions based on artificial intelligence. The investment round was led by London-based VC ETF Partners that backed the world’s first carbon accounting engine Normative, and Astelia. The round saw continued participation from existing investors Newion, PDENH, and Rockstart.
The Amsterdam-based company intends to use this new capital to fast-track its product roadmap and assemble its services into a complete, self-serve cockpit which will allow its customers to balance their renewables portfolio while optimizing their trading strategies and minimizing balancing costs.
Also, it intends to expand into new European markets and double the size of the team to 80 by the end of 2023.
“We are very happy to welcome ETF Partners aboard who share our vision that AI is a crucial element in the energy transition towards a fully carbon-free power system,” said Luuk Veeken, CEO and founder of Dexter Energy. “We really value their entrepreneurial mindset and ongoing leadership in sustainable investment. We see them as a fantastic sparring partner and we are confident they will help guide the growth of our company in the best possible direction.”
“We believe that Dexter Energy has created a category-defining solution that is going to transform the way in which companies forecast and manage their energy generation and the way they trade. We are fascinated by the innovation displayed by the team and we are confident that they are in pole position to become leaders and positive actors for change in the energy industry,” said Remy de Tonnac, Partner at ETF Partners. “
“Newion feels privileged to be part of this journey,” said Patrick Polak, Co-founder, and Managing Partner of Newion. “We think that Dexter Energy’s extremely talented team, with the help of its supportive investors, has the opportunity to disrupt a market that is full transformation.”
What challenge it solves?
There is a major transition towards renewable energy sources worldwide and it is disrupting the electricity markets. This has resulted in significant changes in the way energy companies trade and balance power, leading to an increase in balancing costs by 60% in 2022 and amounting to €20 billion only in Europe.
Previously, fossil fuel plants provided electricity on-demand but now a large part of the energy is generated by intermittent renewable sources. With the rise of renewable energy sources, a significant portion of the energy is now generated by intermittent sources such as wind and solar, which is disrupting the energy trading and balancing activities of companies.
This disruption is expected to continue as the percentage of wind and solar electricity supply in Europe is set to grow from 22% in 2022 to 65% in 2030. This is believed to take balancing costs to new heights and result in significant complications in energy companies and consumers alike.
Founded by Luuk Veeken in 2017, Dexter Energy addresses this challenge with its AI-based renewable power generation forecasting and trade optimisation products for the short-term energy markets. With advanced machine learning algorithms and big data analytics, it helps energy companies manage their short-term trading activities for a 100% renewable portfolio.
