Lund-based company Emulate Energy is expanding, one year after the launch of the company’s virtual battery for electrical grids and power systems. A launch in the United States is on the horizon, followed by a capital round of approximately SEK 100 million.
Exactly one year ago, Emulate Energy’s product began to be actively used by customers in Sweden. It is a virtual battery that, through algorithms, can store energy in electrical grids and power systems. The software enhances the flexibility of systems and their ability to balance periods of high demand.
“We have some competitors, especially in the Nordic countries and Germany. Load balancing is a significant problem that attracts a lot of talent and venture capital,” says Shwan Lamei, CEO of Emulate Energy.
Is there anything that sets your product apart from competitors?
“Our concept originates from research in control engineering and data science. Our technology goes deeper than many others, and therefore, we achieve better results. However, we have many good competitors who may be better than us in certain aspects. Together, we help address issues and innovate the energy industry.”
Last fall, Emulate Energy raised SEK 32 million from previous shareholders Axsol, Skellefteå Kraft, and Utvecklingsklustret Energi, as well as the Stockholm-based Course Corrected fund, which became a new shareholder. Additionally, the American subsidiary received a $1 million grant from the U.S. Department of Energy.
In total, Emulate has raised SEK 55 million in venture capital and aims to raise approximately double that amount by 2024 after releasing the product in the U.S. market.
“Our initial foothold is in Sweden, which has advanced the furthest in the world in the energy transition. We have more than a dozen commercial contracts and are currently the market leader in Sweden. However, our major market in the long term could be the U.S.,” says Shwan Lamei, adding, “President Biden’s Inflation Reduction Act has accelerated the energy transition. There is a lot of capital out there to speed up the energy transition, it’s moving very fast, and there are excellent opportunities for startups in the energy sector to succeed.”
The company has a total of 25 employees, including a couple in the U.S., where Shwan Lamei is based. He mentions that Emulate currently has SEK 10 million in contracted annual revenues and aims to triple that amount next year.
This article is a translation of Rapidus’ article, 20231213.
