SnerpaPower secures €3.4 million to expand in Europe

Icelandic software company SnerpaPower has secured €3.4 million in new funding to accelerate its expansion across Europe, mbl.is reports.

The funding includes a €3 million investment led by Encevo, a leading Luxembourg energy company with annual revenue of more than €3 billion. Existing investors Crowberry Capital and BackingMinds are also participating. SnerpaPower has additionally received a €400,000 growth grant from the Technology Development Fund.

SnerpaPower develops software that enables the largest electricity users to optimise and automate their electricity forecasts and purchases.

Its software is already used by around 15 industrial facilities in the Nordic countries, which together consume more than 10 terawatt-hours of electricity annually. That is equivalent to more than 1 percent of all industrial electricity consumption in Europe, or the electricity use of around three million European households.

The company said it would use the funding to expand further in the European market and continue developing its technology.

“Energy intensive businesses can no longer view electricity costs as a fixed operating expense. Companies that can adapt to changing market and system conditions gain an important competitive advantage,” Íris Baldursdóttir, SnerpaPower’s chief executive and co-founder, said in the announcement.

“We are proud of the trust our customers show us by choosing SnerpaPower’s software to manage more than 10 terawatt-hours of electricity annually. This investment enables us to scale the technology and implement it for even more industrial companies across Europe,” she said.

Auður Vésteinsdóttir, SnerpaPower’s chief technology officer and co-founder, said there were significant opportunities to optimise industrial electricity use, while all operational and contractual constraints had to be respected when responding to real-time changes in electricity markets.

“This is the technical challenge we have worked to solve in recent years. Our goal is to make advanced optimisation algorithms easy to use for all industry, regardless of how complex their operations or electricity procurement may be,” she said.

Martin Wienands, a venture partner at Encevo, said the energy transition required investment not only in renewable energy and energy infrastructure, but also in digital innovation.

“SnerpaPower combines deep industry knowledge with technology that helps large electricity users reduce costs while contributing to a more flexible electricity system. We believe the team is exceptionally well equipped to scale this solution across Europe,” he said.

Jenny Ruth Hrafnsdóttir, a co-owner at Crowberry Capital, said SnerpaPower’s team had used its deep knowledge of electricity markets to accelerate the energy transition worldwide.

“Their technical expertise and vision for a more sustainable future make SnerpaPower a key company in our portfolio,” she said.