tem., an innovative AI-powered platform facilitating direct transactions between UK businesses and renewable energy generators, has successfully raised £10.5 million in Series A funding. This latest round of investment boosts the company’s total funding to £13 million, positioning it for significant expansion and impact in the renewable energy sector.
The core of tem.’s platform is its proprietary algorithm, which enables real-time matching of businesses with renewable energy sources. By bypassing traditional, cumbersome wholesale energy markets, tem. leverages an advanced AI engine that processes a staggering 1.8 billion matches per second. This cutting-edge technology forecasts supply and demand fluctuations with precision, promising up to a 25 percent reduction in energy costs for businesses, all while ensuring a 100 percent traceable renewable energy supply.
Joe McDonald, CEO and co-founder of tem., commented on the significance of the new funding: “Small and medium-sized businesses are crucial in the fight against climate change. With energy costs having surged by 124 percent during the recent crisis, tem. offers a solution that provides affordable, reliable energy while supporting the clean energy transition from within the UK.”
The platform stands out by connecting businesses directly to an extensive network of over 22,000 renewable generators, ranging from large-scale wind farms to family-operated solar parks and local hydropower sources. This shift to a decentralized energy supply model offers a stark contrast to the traditional wholesale market, which has been plagued by inefficiencies and lack of transparency since the 1980s.
Historically, only major corporations with the resources to negotiate complex Power Purchase Agreements (PPAs) have enjoyed direct access to renewable energy. In contrast, tem. opens up this opportunity to the 99 percent of UK businesses currently constrained to the opaque and costly wholesale market, where middlemen extract approximately £1.65 billion annually in transaction fees.
The Series A round was led by Atomico, with notable contributions from existing investors AlbionVC and Revent, as well as angel investors Holly and Sam Branson, and Wise’s CTO Harsh Sinha and CPO Nilan Peiris. As part of this investment, Atomico Partner Terese Hougaard will join tem.’s board, bringing additional expertise and strategic insight.
Terese Hougaard of Atomico highlighted the company’s future potential, stating, “tem. has demonstrated remarkable growth and is uniquely positioned to tap into the $1 trillion global market for direct renewable energy transactions. With the combined expertise of Joe, Jason, Ross, and Bartek, tem. is ideally placed to lead in this transformative space.” tem.energy.
Editorial Opinion
tem.’s groundbreaking approach to energy procurement marks a significant step forward in the renewable energy sector. By utilizing sophisticated AI to connect businesses with a broad array of renewable sources, tem. not only addresses the immediate cost pressures faced by UK businesses but also paves the way for a more transparent and efficient energy market. The platform’s ability to bypass the traditional wholesale market, fraught with inefficiencies and opaque practices, represents a much-needed disruption in the industry.
The potential impact of tem.’s technology extends far beyond cost savings. It empowers businesses of all sizes to contribute to the clean energy transition in a meaningful way, thus playing a crucial role in mitigating climate change. Furthermore, the company’s focus on providing 100 percent traceable renewable energy aligns with growing consumer and corporate demand for greater sustainability and transparency.
As tem. continues to scale its operations and refine its platform, it stands at the forefront of a pivotal shift in how energy is sourced and consumed. The company’s innovative approach and the strategic support from prominent investors suggest a promising trajectory for reshaping the renewable energy landscape, making it more accessible and equitable for all.
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