The energy sector is undergoing major changes driven by several key trends, which we have also outlined in our blog post "Powering the Future: Exploring Innovations in EnergyTech". These trends are reshaping the landscape of energy management and procurement, particularly for Small and Medium-sized Enterprises (SMEs).

Key Trends Driving Change:

1. Renewable Energy Integration: As renewable energy sources make up a larger portion of the energy mix, their variability introduces greater volatility, often resulting in supply-demand imbalances (Source I, II). In 2023, the renewable share in electricity generation increased to 30.3%, covering most of the increase in electricity demand (Source III).
2. Growing Electricity Demand: Electricity demand continues to grow, fueled by population increases and rapid technological progress. In 2023, Europe installed a record of 56 gigawatts (GW) of solar energy capacity marking the third year of annual growth rates of at least 40% (Source IV).
3. Enhanced Connectivity: The widespread rollout of smart meters is reshaping energy management, allowing for more sophisticated demand response and energy optimization strategies (Source V, VI).
4. Energy Shortfalls and Price Volatility: Recent events, like the power shortfall experienced in Spain, highlight the fragility of the energy system. These events drive home the need for resilience and diversified energy sources, further emphasizing the need for better energy management and procurement strategies.

These trends collectively inflate costs and introduce operational complexities, disproportionately impacting SMEs. Often underserved by traditional utilities, SMEs face high costs and intricate processes when dealing with energy brokers, further complicating their energy management efforts.

Given these challenges, we are thrilled to announce our EUR 1.9m investment in Evoltio together with our friends from KFund and Yellow VC. Evoltio is building an innovative energy solution designed specifically for SMEs, with a focus on procurement, monitoring, optimization, and comprehensive energy management. Their approach aims to help SMEs cut costs while successfully navigating the transition to a more sustainable future. Evoltio's platform helps companies understand and optimize their energy consumption in an environment of increasing complexity, volatile prices, and new opportunities like electrical flexibility. Companies like Glovo, Grupo Alacant and Peralada are already using Evoltio to save up to 20% on their energy bills.

Here are some more reasons why we believe in Evoltio:

🚀Strong Team: The Evoltio team—Edu, Jaime, and Max—impresses us with their deep expertise in the energy sector and their genuine passion for addressing critical challenges. Their vision reflects ambitious, big-picture thinking, and we are confident they have the potential to establish a trusted brand. Evoltio is well-positioned to become the go-to partner for SMEs on the path to net-zero sustainability.

🇪🇸Attractive Spanish Market: Spain offers a particularly fertile ground for Evoltio's growth due to a confluence of factors. There's a significant opportunity for cost optimization among Spanish SMEs seeking to improve their energy management. Furthermore, the near-universal adoption of smart meters within the SME sector facilitates seamless integration and access to valuable consumption data. Spain’s grid, with high renewable penetration, brings volatility and challenges that reflect the future of modern electricity systems, making it a strategic testbed.

⚡️Comprehensive Energy Management & Procurement Solution: Evoltio’s approach stands out by addressing both energy management and procurement. The platform provides SMEs with a complete picture of their energy performance, opportunities for quick optimizations, ROI calculations for on-site investments, and direct energy procurement options. This approach benefits businesses with existing long-term contracts aiming to optimize their energy use, as well as those exploring new procurement opportunities.

⏱️Favorable Market Dynamics: Rising energy prices, supply disruptions, and increasing demand are reshaping the energy landscape. Simultaneously, customers, regulators, and shareholders are pressuring companies to improve accountability for greenhouse gas emissions. Sustainable emission reductions depend on greater efficiency and energy conservation, driving the demand for solutions that enable smarter energy management, control, and procurement.

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We are confident that Evoltio has the potential to become the first energy supplier for SMEs fully aligned with decarbonization goals. We’re incredibly excited to be part of this journey! 🔮

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To all fellow entrepreneurs and investors: Feel free to reach out to us (jan-hendrik.buerk@b2venture.vc & johanna.junkermann@b2venture.vc) if you are interested to learn more about our view on the market or if you would like to get in touch with the founders.

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