Turning volatiliy into a billion-dollar revenue opportunity
Technology offers us the chance to deliver clean, cheap and accessible energy for everyone.
And we are making great progress. On one hand, the supply of clean energy is surging, with renewables expected to generate 66% of the EU’s electricity generation by 2030.
On the other, key challenges remain. The intermittent nature of renewables adds another dimension of complexity to a naturally volatile energy market. Balancing supply, demand and cost is a constantly moving puzzle.
As renewables continue to expand, flexibility demands are set to soar correspondingly. We urgently need to find solutions that can stabilise supply and demand — solving one of the key barriers holding back the transition.
Amid unprecedented political momentum behind European energy sovereignty and regulatory pressure on incumbents to innovate, now is a hugely exciting moment for energy tech. Investors continue to be excited by the opportunity, with VC investment in green energy tech leading the board by vertical globally, up 12% to $9.4bn in 2024.
TLDR: There’s no time to lose!
Here, we share our take on the sector and why our latest investment, Podero, is a pivotal player in the shift to a more flexible and resilient energy grid.
RENEWABLES HAVE A FLEXIBILITY PROBLEM
Put simply, right now we either have too much or too little renewable energy.
We already know renewable energy is an intermittent source of energy — that is, the wind does not always blow and the sun does not always shine.
Meanwhile, however, there is another problem. As deployment soars and more renewables come online, we have increasing problems with curtailment. This is when we produce more electricity from solar or wind than the grid can handle or needs — since it cannot be stored, it is simply wasted.
2024 was a record for curtailing renewables — more than 12 terawatt hours of electricity from renewable energy sources were cut in the European Union due to grid congestion — equivalent to all of Spain’s photovoltaic production for three months and costing €4.26 billion.
If we don’t figure out how to stabilise supply and demand the costs and environmental impact of electricity generation will rocket due to reliance on peak load plants (often fuelled by natural gas) and large-scale storage.
One option is building better batteries and expanding the grid but this is incredibly expensive environmentally and financially — a cost that will be passed onto customers and taxpayers.
Hardly the future we imagine!
A far more compelling option is to get smarter about how we use electricity.
ENTER DEMAND-SIDE FLEXIBILITY
Demand Side Flexibility (DSF) is a strategy that enables us to adjust the energy consumption of homes, businesses and industries in response to supply, price and grid requirements.
One tactic is ‘load shifting’ energy consumption to times when electricity is cheaper and more abundant e.g. at night.
Another emerging and exciting tactic is tapping into the fast-growing pool of energy assets in people’s homes and businesses that have the capacity to generate extra energy (think solar panels and heat pumps) or absorb excess renewable energy (think electric vehicle batteries).
These so-called distributed energy systems (DERs) are amazing because they can help balance supply and demand locally, making national grids more flexible.
DERs are already being rapidly deployed as for example home solar panels and electric vehicles become mainstream, so additional use for flexibility has significantly lower environmental and economic costs than deploying new (and resource-intensive) alternatives like large-scale, lithium-ion based storage systems.
The benefits of bringing DERs into the mix are many, including:
- Decrease in curtailment of renewable power
- Lower demand for peak fossil energy
- Lower demand for energy storage and grid infrastructure e.g. batteries
- All of the above result in lower systemic and private costs and GHG emissions
UTILITIES UNDER PRESSURE TO INNOVATE
Using Demand-Side Flexibility as part of the mix of solutions, could save Europe an estimated €301.5 billion, see emissions 37.5 million tonnes lower and significantly cut curtailment compared to a system without DSF.
Governments are aware of this potential and enforcing it. Dynamic tariffs are becoming mandatory across Europe - increasingly energy retailers must offer that their customers can use flexible tariffs.
Many neo-utility energy retailers are popping up to offer these tariffs with a strong customer proposition, putting the major utilities under pressure.
What’s more, weather-dependent devices like heat pumps, air conditioners, and solar panels are making it harder for utilities to deliver reliable and affordable electricity.
With rising renewables and home electrification, utilities will likely increasingly face fines for failing to accurately predict device power usage, driving demand for more reliable and intelligent software solutions.
And with that, the stage is set.
INTRODUCING PODERO
Podero’s steering and trading software helps utilities turn volatility into a multi-million euro revenue opportunity, passing on savings of more than 25% to customers.
The team’s software solves one of the BIGGEST challenges holding back the energy transition: unlocking the power of decentralised energy sources while maintaining grid stability.
By integrating with home energy systems for assets like EV batteries and heat pumps, Podero’s software enables utilities to steer their customers’ devices, optimising for grid stability and pricing.
Podero also provides unique forecasting and recommendations, giving utilities trading the power aggregated across these DERS on energy markets a cutting competitive edge.
This approach helps utilities manage volatility effectively, unlock profitable new revenue streams and offer substantial savings for end users contributing to a more sustainable and cost-efficient energy ecosystem.
With a proven track record — operating in six countries, maintaining 99.98% uptime, and offering the most extensive API integrations across major energy devices — Podero has demonstrated both strong market traction and technological leadership.
Podero partners with utilities for large-scale, fast deployment. Existing customers include E.ON, which has 49 million users, demonstrating mass coverage potential — meaning faster rollout and more impact!
Enabling technologies with global scalability, like Podero, represents a major opportunity to build category-leading businesses across Europe, the US, and beyond.
The software-only model excites us for its ability to scale efficiently, with near-zero marginal costs driving strong margins.
Combining large-scale impact with strong financial fundamentals — recurring revenues, low overhead, and global expansion potential are the recipe for transformational success we need to accelerate the transition.
HUGELY EXCITING!!
SO WHAT’S NEXT?
The push for EU energy sovereignty is more critical than ever in 2025. Shifting geopolitical dynamics and reliance on energy imports have underscored the need for Europe to build resilience — accelerating domestic renewable deployment, expanding energy storage capacity, and fortifying grid infrastructure to ensure stability.
Meanwhile, trade tensions between Europe and China have significant implications for the clean energy transition. With tariffs and restrictions on Chinese-manufactured batteries, and other critical components, Europe and the US are facing increased costs and supply chain challenges. These measures are driving Western nations to accelerate investment in local manufacturing and diversify supply chains.
At the same time, the situation has highlighted the urgency of developing alternative solutions for energy flexibility, such as demand side flexibility, as well as virtual power plants, and non-battery storage options like hydrogen and geothermal. By addressing these challenges strategically, the West can strengthen its energy sovereignty while continuing to advance the clean energy transition.
However, flexibility can only meet so much demand. We also need:
GRID TECH - the backbone of a renewable-powered future. To meet EU targets for renewables, we need smart, scalable solutions that can integrate intermittent sources, manage congestion, and ensure grid stability — because solar and wind alone won’t deliver energy security.
BASELOAD SOLUTIONS like geothermal represent a critical opportunity to complement intermittent renewables. With advances in drilling and heat exchange tech, geothermal is emerging as a viable, clean, and reliable energy source that Europe must scale to achieve energy independence.
FINANCING the energy transition is no longer optional — it’s essential to accelerate it. Innovative funding mechanisms are needed to unlock capital for hard-to-decarbonise sectors, grid expansion, and renewable baseload solutions, ensuring that critical projects scale at the pace required to meet climate goals.
The energy transition in 2025 isn’t just about technology — it’s about building a resilient and geopolitically secure ecosystem. Europe has the chance to lead, but it requires bold investment in enabling tech, creative financing models, and a focus on independence from global supply chain bottlenecks.
We’re ready!
Author: Jessica Burley
