TOP 100 Startups that transform the energy industry

The energy industry faces the challenge of satisfying the increasing energy needs while fighting climate change. Technology, decentralization, and digitalization lay the foundation for innovative solutions that address this development: Communities produce their own power that they store and sell to each other, and they move to microgrids and decentralized grid models. This transformation helps reduce carbon emissions, optimizes and automates energy use, and gives customers more control.

Over the last 10 years, the TOP 100 Jury has chosen more than 400 Swiss deeptech startups to create the TOP 100 Rankings that have become a benchmark in the ecosystem. This selection of TOP 100 startups illustrates innovative solutions that transform the energy industry: 

Agile Wind Power: Repowering the world through vertical-axis wind turbines

Depsys: Evolving smart grid solutions for simpler energy transitions

eSMART: Providing smart energy management solutions for sustainable buildings

Imperix: Advancing power conversion solutions

Insolight: Developing next-generation solar modules

Skypull: Delivering low-cost energy via drones and altitude winds

Younergy Solar: Reshaping the Swiss energy landscape


The global energy demand is rising. And so is the demand for cleaner energy sources. Transforming the energy sector is a collaborative effort that includes developing new technologies, providing funding for sustainable energy projects, and creating relevant regulations and incentives to advance change. To learn more about the future of the energy industry, we talked to Dr. Christoph Frei, who is a partner at Emerald Technology Venture and leads the development of the Global Energy Transformation Alliance. Christoph is also a Professor and advisor to the president of the Swiss Federal Technical Institute in Lausanne and a member of the board of the Energy Web Foundation.

Christoph, how would you describe the Swiss energy ecosystem?
First, fragmented: The size of utilities in international comparison is small, and there is quite a diverse approach to innovation by utilities and energy companies. This can be a challenge in two ways—the scaling of new concepts and the critical size to do significant innovation work. Partnerships, collaboration, and open innovation would be important, but the willingness to cooperate is limited.
Second, well-resourced: there are great technical skills (ETH domain, Fachhochschulen, etc.) and multiple diverse funding vehicles (including research funds, technology funds, etc.). With this, the generation of new solutions and early-stage companies is vibrant. However, the discipline to take early ventures to scale is less strong.
 
How do startups shape the technology, decentralization, and digitalization that transform the energy sector? 
They develop new solutions (e.g., consumer platforms, electric-vehicle charging technologies, home and behind-the-meter solutions, and smart applications, etc.), generally collaborating with energy or non-energy incumbents (e.g., telecoms) and challenging or complementing existing propositions.
We also see solutions that scale and directly compete with incumbents (e.g., Octopus in the UK). H2Energy is an example where a new partnership among incumbents delivers a new solution (hydrogen-fueled logistics).
 
What roles will traditional corporations play in this scenario? 
In most cases, incumbents can be partners for pilots, demonstrators, and scale-ups. The specific involvement of the incumbent varies and can take the form of an investor, a buyer, a partner (in a joint venture), or a client. In rare cases, they are in direct competition.
 
What do you think the energy industry of the future will look like? 
Decarbonization is the key driver for electricity and beyond. Electricity represents only 20% of final energy demand—the rest is mostly fossil molecules. Key decarbonization aspects, therefore, include:

• further greening of electricity; additional electricity to come from renewables
• further electrification of final demand;
• intermittent renewables require a system with greater storage, demand-side management, and sector coupling capabilities;
• hard-to-abates cannot be electrified and need green molecules: biofuels, hydrogen, and synfuels—some of these can be produced locally, most will need to be imported.

Why is the energy industry attractive to investors? 
First, the scale is huge: 50% of the world’s invested capital is in energy and energy-close infrastructure. Second, the transformation dynamics are massive: 120 countries and 20% of Forbes 2000 companies have committed to net-zero over the past two years. Third, there is increasing purpose in line with ESG [Environmental, Social, and Governance] and impact aspirations.
 
What’s your advice for startups that want to succeed in these sectors? 
There is a great opportunity and equally great competition. Solutions that contribute to net-zero emissions are hot today and will see a multitude of applications for many years to come. First: Professional leadership as well as business model, financial and technological discipline are key to accessing financing and scaling opportunities. Second: Partnerships for scaling are critical, and we need to build on existing if the transformation is to be affordable: Work early on with incumbents as scaling partners and multipliers. Finally: Be bold.


Parts of this article were first published in the book World shapers of tomorrow: Startups building our future. 
 

About World shapers of tomorrow: Startups building our future

The TOP 100 book World shapers of tomorrow: Startups building our future shows the impact of the TOP 100 Swiss Startups over the last 10 years. On 100 pages, the publication features the facts and figures about the startup ecosystem in Switzerland, shows the sectors and geographic distribution, and lists the investors behind Swiss deeptech startups. The book also highlights disruptive companies that changed their industry: Beekeeper, Bestmile, Climeworks, Covagen, DeinDeal, Doodle, GetYourGuide, MindMaze, Scandit, and Piavita. The founders of these startups share anecdotes and discuss their successes, lessons learned, and visions for the future. A selection of 10 verticals illustrates how Swiss deeptech startups transform our lives and help us build a better and more sustainable future in relation to health, longevity, digitalization, and decentralization.
Learn more and download your copy at www.top100startups.swiss/10years.

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