Reactive Technologies, a leading UK-based smart grid and demand-side response (DSR) company, today announced the successful conclusion of its latest funding round. Reactive chose to accept an offer from Octopus Capital Limited (Octopus) having received expressions of interest from other leading investors.
In making its investment, Octopus recognises the unique value in Reactive’s patented technology portfolio, the quality of its executives and engineering team and Reactive’s appeal to electricity generators, users and network operators who are seeking new solutions to balance their power grids. Octopus manages a distributed energy generation portfolio worth c.£1.8bn. Octopus is the only company in the UK that brings together managed generation assets, a digital energy supply business and cutting edge technology enabling smarter energy management.
Chris Hulatt, Co-founder of Octopus commented: “At Octopus, we look to invest in areas where we can really make a difference. Reactive Technologies is at the heart of changing the way energy is managed and addresses some of the energy sector’s biggest challenges. Our investment represents a strategic decision for Octopus, supporting our existing assets and building on our position as one of the UK’s largest investors in the renewable energy sector. We look forward to working closely with the Reactive Technologies team to support our shared focus on a smarter solution to energy generation and supply.”
The increasing use of decentralised renewable energy is disrupting the nature of today’s power grids. Intermittent renewable sources reduce grid stability – operators need a much more dynamic approach to balance supply and demand today, which will require investment in transformational technologies.
In the UK alone, National Grid currently spends £1 billion per year on balancing services, a figure that is expected to increase significantly in coming years. As well as requiring increased investment, these unprecedented changes in the industry present an opportunity for both operators and consumers. Estimates1 suggest that by adopting ‘smart power’ solutions, UK consumers could save £8 billion annually by 2030, while helping the country to meet its carbon targets. While these figures apply to the UK, the same structural changes are affecting energy markets across the world, which offers Reactive substantial growth potential.
“Octopus has the presence and scale to help us to deliver on our potential,” said Marc Borrett, Co-founder and Chief Executive, Reactive Technologies. “We are delighted to have them on board. We share a common vision and Octopus has a clear commitment to drive change in the UK energy market – especially for the benefit of consumers. We are at the start of a new era – the ‘internet of energy’, and it will fundamentally change the way we manage energy.”
Volker Beckers, Chairman, Reactive Technologies, added: “This investment represents another major milestone for our company. Our ambition and technology is transforming energy systems from carbon-intensive, centralised generation towards smart, clean and agile systems that have software engineering and digital communications at their core. We are confident that both government and key industry stakeholders will see there are next generation solutions available now, driving new jobs, cutting costs and creating a leadership position for the UK.”
Dr Jens Madrian, Chief Financial and Commercial Officer, Reactive Technologies said “This investment will enable us to increase our commitment to the UK and continue our international expansion, develop our technology solutions and commercial activities to deliver real scale and opportunity in the energy industry. To that end we are actively recruiting into our teams now.”
Scalable technology provides unique business benefits
Stabilising today’s power grids requires fast, sophisticated and robust communication technologies. Reactive’s innovative approach to cloud-based demand side response, power management, frequency response and remote control and measurement of grid-connected assets enable industrial and commercial energy users, network operators and distributed power generators to mitigate cost and operational risks.
By enabling energy control that can handle sub-second responses up to multi-hour energy shifts, Reactive’s platform enables its customers to take advantage of the broadest range of revenue opportunities on offer. The scalability of the technology allows customers to aggregate thousands of assets under one platform – including power generators, energy consuming equipment and storage, from large-scale industrial customers to deployment in residential markets.