German digital green energy provider Ostrom has closed a \u20ac20 million Series B funding round. Led by Eneco Ventures, the round was also joined by existing investors SE Ventures, Union Square Ventures, Adjacent, \u00dcbermorgen and J12. It brings Ostrom\u2019s total funding to more than \u20ac40 million, and the company will be using the investment to accelerate their rollout, subsidise smart meter installations, and consolidate their leading position in automation.<\/p>\n
Ostrom has seen rapid growth as a green energy provider and operates Germany\u2019s largest Virtual Power Plant (VPP). We asked co-founder and CEO Matthias Martensen about Ostrom, their plans, and the impact that green energy can make.<\/p>\n
From idea to industry disruptor<\/p>\n
The idea behind Ostrom came from the founders\u2019 observations of the power industry. Like much of Europe, the German power sector has changed little over time.<\/p>\n
Martensen, with a background in consulting, noted how badly the old-fashioned approach served some established companies. \u201cDuring Covid, one energy retailer lost 80% of customer acquisition in the lockdown,\u201d he explained. \u201cThey were using door-to-door as the main acquisition channel.\u201d He joined Karl Villanueva, who had marketing and product experience from several startups, to found Ostrom in 2021<\/a>, offering customers a transparent, flexible, and responsible green energy option.<\/p>\n Smart energy and a seamless customer experience<\/p>\n Ostrom\u2019s goal is to become Europe\u2019s leading green power provider, and they have made an impressive start, despite the low base they are working from. \u201cThe biggest bottleneck in Germany is smart meters<\/a>, only 2% in Germany have one,\u201d he told us. \u201cOstrom is already ahead, with close to 10% of its customers having one installed.\u201d Smart meters are critical to one of Ostrom\u2019s major features, their Virtual Power Plant.<\/p>\n Virtual Power Plants (VPPs) are a relatively new concept made possible by the adoption of home energy generation and even electric vehicles. Traditional power relies on large stations generating energy. The problem is that waste is built in: they have to generate more power than is needed, but that surplus energy goes unused.<\/p>\n VPPs work by utilising home generation and storage, using them to supplement traditional generation. It allows homeowners, for example, to store the cheap surplus power in their EV<\/a>, selling it back to the grid during peak demand times.<\/p>\n A major challenge is selling the benefit in a market that has rarely seen innovation, \u201cMass market adoption is around the corner, but it will take the next few years to double down on this opportunity,\u201d said Martensen. \u201cA key part of this is to find and educate customers. This is where Karl can bring his deep expertise to make VPPs easily understandable.\u201d<\/p>\n