Smarter Grid Solutions secures £3M to target Europe and US
Smart grid technology firm set for further growth
Smarter Grid Solutions, a UK-based leader in the development and deployment of technology for the 'smart grid' market, has secured a £3 million investment in a deal led by Scottish Equity Partners (SEP), Scottish Enterprise and the University of Strathclyde.
The firm's pioneering active network management technology allows power companies to run electricity grids closer to their operating limits without compromising safety and security. It uses software, automation and control to monitor grids in real time, which can create up to three times more capacity in the existing grid. In turn that enables power companies to manage congestion issues at local, regional or national levels and cope with increasing volumes of low carbon generation and demand.
Internationally, it's estimated that the smart grid technology market will be worth more than $56 billion by 2020. This new funding deal will allow Smarter Grid Solutions to position itself to meet substantial international demand; to take forward ambitious product development plans and to take advantage of emerging opportunities in UK, Europe and North America. As part of those plans the company will be growing its Glasgow base, expanding its London office and opening an office in New York.
Alan Gooding, Managing Director of Smarter Grid Solutions, said: “This investment is a huge endorsement of our plans for future growth and our groundbreaking technology. Our cost-effective solutions meet the increasing demand for low carbon electricity by deferring the need for major investment in new power lines, maximising the efficiency of the existing power grid and enabling earlier connections for renewable generation.”
The firm's UK business is currently playing a key role in innovative low carbon network projects with five of the UK’s six electricity distribution companies - UK Power Networks, SSE plc, ScottishPower Energy Networks, Western Power Distribution and Northern Power Grid. It has also already attracted widespread interest from distribution and transmission companies in Europe and North America.
Tony Robison of SEP, who led the investment from its Environmental Energies Fund (EEF), commented: “Smarter Grid Solutions’ active network management technology offers a world-class solution to the key challenges currently facing power companies across the globe. Our investment, combined with the excellent track record of the company's management team and the sheer scale of the potential market on offer, will enable Smarter Grid Solutions to build on its position as the leading provider of active network management systems to the sector.”
Kerry Sharp, acting head of the Scottish Investment Bank, said: “This is exactly the kind of company we want to support - innovative, ambitious and with the drive to keep developing. We’re very pleased to see it entering this new phase of expansion, and look forward to continuing to work with it into a very successful future.”
Dr David McBeth, Director of Research & Knowledge Exchange Services at the University of Strathclyde said: “Strathclyde is a leading international technological university committed to creating and supporting high growth companies with both economic and societal benefit to Scotland. Investing in Smarter Grid Solutions, a growing star from our Renewable Energy Portfolio of spinouts, is the University's first follow-on investment deal.”
About Smarter Grid Solutions:
Smarter Grid Solutions is at the forefront of smart grid technology, offering power companies and utilities affordable, innovative solutions to transition to a low carbon electricity system. By creating more capacity in the existing electricity grid, power companies and utilities can use their existing assets to connect more renewable energy to the grid, and respond to an increase in demand for electricity. This is more sustainable and cost-effective than building expensive capital grid upgrades. Smarter Grid Solutions originated from a commercial partnership between University of Strathclyde and SSE plc. Professor Graham Ault recently took up the post of Development Director, rejoining fellow founders Alan Gooding, Managing Director and Bob Currie, Technical Director. http://www.smartergridsolutions.com
About Scottish Equity Partners and the Environmental Energies Fund:
Scottish Equity Partners (SEP) is a leading UK venture capital company focused on investment for innovation and growth. Since 1991 SEP has invested in 150 companies, resulting in numerous high value exits and establishing global technology leaders such as Wolfson Electronics, Craneware, Biovex and IndigoVision. The current SEP portfolio comprises over 30 high growth companies including Skyscanner, Matches, Aridhia and Arkex. Currently investing from a £200 million fund, SEP focuses on technology and technology-related companies throughout the UK and Ireland in the increasingly converging TMT (technology, media and telecoms), healthcare and energy sectors. The firm has offices in Glasgow and London. In 2011 SEP partnered with FTSE 100 company SSE plc to raise a £95m secondary fund – the Environmental Energies Fund (EEF) - focused exclusively on clean tech companies. The fund encompasses investments in nine companies across the renewables spectrum including energy efficiency services and solutions company Anesco, remote aerial inspection company Cyberhawk Innovations and electricity grid management technology company Smarter Grid Solutions. For more information, including details of the SEP team and other portfolio companies, please visit http://www.sep.co.uk
About Scottish Investment Bank:
The Scottish Investment Bank is a division of Scottish Enterprise, operating Scotland-wide in partnership with Highlands and Islands Enterprise. It manages a suite of funds including the Scottish Seed Fund; the Scottish Co-investment Fund; the Scottish Venture Fund; the Scottish Plastics Loan Fund and the Renewable Energy Investment Fund. SIB also provided £55 million of cornerstone funding to the privately-managed SLF, which is part financed by the Scottish Government, Highlands and Islands Enterprise and the European Regional Development Fund (ERDF). These support Scotland’s SME funding market to ensure businesses with growth and export potential have adequate access to capital. SIB also provides a team of financial readiness specialists to help companies prepare for new investment and more easily access finance from the private sector. See www.scottish-enterprise.com/sib for more.
About University of Strathclyde:
The University of Strathclyde is a leading international technological university which is recognised for strong research links with business and industry, commitment to enterprise and skills development, and knowledge sharing with the private and public sectors. The University was named UK University of the Year in the 2012 Times Higher Education Awards.
For further information, please contact:
Helen Rognaldsen, Smarter Grid Solutions T: +44 7736 199 230, hrognaldsen@smartergridsolutions.com
Catherine Simpson, Scottish Equity Partners T: 0141 273 4000 M: 07920 841031 E: catherine.simpson@sep.co.uk
Sarah Lee T: 0131 225 3875 M: 07766542110 E: sarah@hottinroof.co.uk