Overcoming grid congestion: simpl.energy secures funding

By Laio

Simpl.energy, a Dutch startup founded, has secured funding from Rabobank and Arches Capital to address the growing challenge of limited electricity grid capacity. The company’s innovative software solution aims to optimize existing power connections, enabling businesses to grow and become more sustainable despite long wait times for larger grid connections.

Focusing on campuses, real estate owners, and the transport and logistics sector, simpl.energy plans to launch its first operational locations this year. The startup’s approach includes redistributing electricity to reduce peak demand and collaborating with network operators on flexible transport contracts, potentially revolutionizing how businesses manage their energy needs in the face of infrastructure constraints.

Addressing energy bottlenecks

Companies are increasingly facing challenges due to long wait times for expanding their power grid connections. The Utrecht-headquartered startup offers a solution by optimizing existing electricity capacity. Co-founder Jorrit Salverda compares this situation to traffic congestion, where the infrastructure is present but underutilized. By leveraging their advanced software, simpl.energy aims to alleviate these bottlenecks, allowing businesses to manage their energy consumption more efficiently and sustainably.

Dutch electricity grid ‘unprepared’ for the green transition

The Netherlands is grappling with a severe electricity grid crisis as the country’s ambitious renewable energy goals clash with outdated infrastructure and mismanagement. The Grid Transition Index by think-tank GLOBSEC shows that despite plans for 85% sustainable electricity production by 2030, the grid is ill-prepared for the surge in demand.

A strategic partnership

Rabobank and Arches Capital’s investment—the amount of which has not been disclosed—marks a milestone for simpl.energy. This funding will enable the startup to make its innovative solutions operational in targeted sectors. Lotte Smits van Ditshuizen from Arches Capital sees simple.energy’s software as a crucial part of the energy transition puzzle, emphasizing its potential to transform how energy is distributed and consumed across different industries.

Expansion and future plans

With a team of 10, simpl.energy is prepared to scale its operations across the Netherlands by 2025. Initial contracts have been signed, and there is growing interest in their services. As they prepare to launch their first locations, co-founder Tom Selten emphasizes the importance of customer satisfaction in their expansion strategy, ensuring each step is carefully managed to maintain high service standards.