Santa Monica-headquartered Swell Energy has raised $US120 million to roll out 600MWh of rooftop solar based virtual power plants, including 26,000 battery storage systems at homes and businesses across the United States.
Swell Energy develops and finances residential and commercial virtual power plant (VPP) programs, in partnerships with local companies to install solar and storage.
On top of smart energy management, Swell’s focus is on providing grid balancing services to utilities using its solar and battery VPPs.
Swell already provides a variety of grid balancing services in utility territories across Hawaii, California, and New York, as part of these states’ efforts to reduce their reliance on fossil fuel peaker plants.
On the money with VPPs
On Tuesday, Swell said it had completed a fundraising of $US120 million, led by SoftBank Vision Fund 2 and Greenbacker Development Opportunities Fund I, LP, with participation from an Ares Infrastructure Opportunities fund and Ontario Power Generation Pension Fund.
The funding will support Swell’s plans to develop 600MWh of VPPs through the deployment of 26,000 energy storage systems at homes and businesses across the US.
Swell’s VPPs rely on the company’s GridAmp software platform, which aggregates and co-optimises distributed energy resources and links together utilities, customers, and third-party services.
“Utilities and investors have understood the importance of virtual power plants for some time now; this funding further signals that the capital markets see tremendous value in this new asset class,” said Suleman Khan, CEO of Swell Energy.
“Virtual power plants are the key to a cleaner energy future at scale.
“Through the use of our GridAmp software, we are dedicated to enabling an accelerated transition to a carbon-neutral future compatible with the needs of both utilities and the communities they serve.”