Eco Investor March 2016

Unlisted Companies

US$36 Million for Solar Storage Company

Sunverge Energy has received US$36.5 million in a new round of venture capital to help it commercialize its battery technology that it says is world-leading and about to boost the uptake of residential energy storage in Australia.

The latest funding round included US$20 million from new investor, AGL Energy, which invested alongside current investors the Australian Renewable Energy Agency (ARENA), Softbank China Venture Capital (SBCVC), Siemens Venture Capital and Total Energy Ventures International.

ARENA chief executive, Ivor Frischknecht said the series C round of financing is a clear signal of confidence in Sunverge's smart storage system.

Sunverge's next generation of its Solar Integration System (SIS) will be available this summer. The intelligent system combines powerful lithium batteries with a sophisticated control platform to allow power to flow to and from the grid and to be aggregated and controlled from the cloud as part of a Virtual Power Plant.

The system helps homeowners to manage their renewable energy generation efficiently, and it helps utilities to manage those power sources and aggregate them into Virtual Power Plants to meet peak energy demand across neighbourhoods, communities and service areas. It lowers costs, increases energy reliability, strengthens the grid, and accelerates the adoption and integration of distributed energy resources.

ARENA and SBCVC first invested over US$7 million in Sunverge Energy in 2014 through the Southern Cross Renewable Energy Venture Capital Fund managed by Southern Cross Venture Partners. The new investment adds to this and will help Sunverge establish operations in Australia and overcome barriers to the widespread deployment of storage systems. "The company has continued to grow and this latest success will allow it to employ more staff in Australia and explore options for locally manufacturing its systems in the future," said Mr Frischknecht.

The new partnership between AGL and Sunverge will accelerate the roll out of the storage solution in Australia as AGL has also become the exclusive channel partner for the sale of the systems in Australia. AGL's managing director and chief executive, Andy Vesey, and AGL's executive general manager of New Energy, Alistair Preston, will join the Sunverge board.

Mr Vesey said the energy sector in Australia and globally is undergoing significant change and AGL aims to lead the way in Australia. "Our partnership will allow us to better meet the needs of our customers in a carbon-constrained energy future which is increasingly based on decentralized products and services including digital metering, solar PV systems, as well as new technologies such as batteries, electric vehicles and other 'beyond the meter' energy solutions," he said.

Mr Frischknecht said "As storage becomes more commonplace in Australian homes, we expect to see energy retailers firm up business models for selling new products and work through some of the regulatory constraints facing Australia's emerging storage market. Solving these challenges will ultimately allow consumers to get more value from their rooftop solar systems and increase the supply of renewable solar power in our electricity networks, contribute to grid stability and reduce peak load stress."

Sunverge co-founder and chief executive, Ken Munson said the company looks forward to working with AGL and its other investors to accelerate the development of new, innovative energy solutions. The investors are some of the biggest names in the energy industry and bring tremendous expertise and access to new geographic markets, he said.

The investors in Sunverge also include ACME Ltd and Mitsui & Co.

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