Peak Power Raises $35 Million to Ramp Up Expansion of Its Energy Storage Optimization Software into the US
Toronto, ON, May 18, 2023 (GLOBE NEWSWIRE) —
- Led by Greenbacker Capital Management, a leader in sustainable infrastructure investing, the financing will accelerate Peak Power’s expansion of its energy storage platform, which includes optimization software and turnkey project development solutions across New York, Massachusetts, Virginia, and California
- Peak Power develops software to optimally operate battery assets to provide energy services to the grid, generating savings and revenue for commercial and industrial (“C&I”) customers and energy storage project developers
TORONTO, ONTARIO – May 18, 2023 – Peak Power Inc. (“Peak Power”), a Canadian cleantech company that provides energy optimization software and services for commercial real estate and industrial customers and energy storage project developers, announced the successful closing of a $35 million USD financing. The round was led by an affiliated fund of Greenbacker Capital Management LLC (“Greenbacker”), which provides growth capital and best-in-class guidance for growth-stage clean energy companies. Prior investors providing additional investment include Osmington Inc., BDC Capital, Export Development Capital, Hatch, Sensata Technologies, and The Atmospheric Fund.
Peak Power controls and optimizes battery storage, grid-interactive buildings, and electric vehicles, unlocking their hidden capacity. The software ensures multiple objectives are met including net zero initiatives, financial benefits, and electricity grid reliability. Peak Power’s flagship software, Peak Synergy, optimizes for various revenue streams enabling investors to receive higher returns that can be used to deploy more battery storage projects.
With this latest injection of capital, Peak Power plans to ramp up its expansion into the US, hire for critical roles, and continue to develop its software capabilities. Peak Synergy is currently deployed in over 13 million sq. ft. of real estate, with ~150 MWh of battery and electric vehicle capacity under contract or committed across North America. As part of this partnership with Greenbacker, Peak Power expects to increase its project deployment efforts in collaboration with its third-party asset-level capital financing from Madison Energy Investments, which provides a no-cost solution for facility owners and project partners.
“Battery storage is a linchpin technology for decarbonizing the electricity sector. This funding will allow us to help even more businesses reach their economic and environmental targets,” said Derek Lim Soo, Peak Power CEO and Co-Founder. “Tailwinds in the US energy storage market have never been stronger. The demand for clean distributed energy resources is growing, government policies are removing barriers for investment, and technology is becoming more cost-effective.”
The investment tax credit (“ITC”) provided for in the Inflation Reduction Act is driving adoption of battery energy storage in the US. The ITC reduces the cost of installing, owning, and operating battery energy storage systems, making them more attractive for investment.
“We’re thrilled to be partnering with Peak Power. We have an aligned vision that energy storage is going to have a great period of growth, and that Peak Power has the right technology and the right people to be a big part of that,” said Ben Baker, Managing Director of Greenbacker. “They bring a wealth of expertise and experience in energy storage operations. We were particularly impressed with their deep understanding of their customer base, energy markets, and software development.”
Alexa Capital, a leading financial advisory firm exclusively focused on the energy transition, served as financial advisor to Peak Power.
About Peak Power
Peak Power is a cleantech company operating in Ontario, New York, New England, Virginia, and California. Its flagship software, Peak Synergy, provides energy management solutions for commercial real estate and industrial customers by optimizing three core energy assets: battery energy storage systems, grid-interactive buildings, and electric vehicles. Peak Synergy enables customers to minimize operational costs, reduce emissions, and sell energy back to the grid. Peak Power’s software delivers results with proven and innovative projects that take commercial and industrial scale storage systems and electric vehicles into electricity markets. Peak Power also provides turnkey energy storage solutions for customers including project development support, financing, and installation.
About Greenbacker Capital Management
Greenbacker Capital Management LLC is an SEC registered investment adviser that provides advisory and oversight services related to project development, acquisition, and operations in the renewable energy, energy efficiency, and sustainability industries. For more information, please visit www.greenbackercapital.com.