Flexibility Market Software Provider Piclo Scores International Funding

Introduction

Piclo, a UK-based software solutions provider specializing in the flexibility market, has secured international funding from the venture capital arm of EDP Renewables, a Portuguese renewable energy company. This investment is part of a larger funding round co-led by EDP Ventures, the Clean Growth Fund (CGF), and Future Energy Ventures (FEV).

Company Overview

Piclo enables trading between buyers and sellers of electricity capacity, enhancing grid flexibility and contributing to the decarbonization of electricity networks. The company's end-to-end platform is one of the largest in the world, with over 300,000 active assets registered, totaling more than 22GW of flexible capacity. Piclo has awarded contracts worth £74 million and acquired over 2.6GW of flexible capacity.

Expansion Plans

The funds will be used to further expand Piclo's presence into the US and Australia. The company already operates in the UK, Ireland, Italy, Australia, the US, and Portugal. In Portugal, Piclo collaborates with E-REDES, EDP’s energy distribution system operator, which uses the Piclo Flex marketplace to trade flexibility.

Market Impact

Flexibility markets allow energy system operators to purchase electricity from flexible sources such as electric vehicles and batteries during periods of high demand or low supply. Network regulator Ofgem has emphasized that flexibility is essential for achieving a zero-carbon electricity system by 2030.

CEO's Statement

James Johnston, CEO of Piclo, stated, “We are pleased to announce EDP Ventures’ new investment into Piclo which will support the growth of our presence in new markets, particularly expanding further into the USA and the Asia-Pacific. Since launching in 2018, we have helped network operators around the world harness flexibility as an essential solution to modernize the grid.”

EDP Ventures' Perspective

Frederico Gonçalves, managing director of EDP Ventures, added, “This collaboration will enhance our distributed energy resource assets, such as decentralized storage and industrial and residential assets, globally. With this partnership, we aim to contribute even more to the decarbonization of energy systems worldwide and explore new opportunities in flexibility markets.”

UK Flexibility Market

Piclo has been involved in several significant projects in the UK. The company procured its first international project in 2020, joining the Slovenian Green Transformation Consortium to run flexibility trials similar to those managed in the UK. The UK government funded Piclo’s trial phase, which saw the participation of 175 flexibility providers with a total combined capacity of 4GW aiding the management of local grids in congested areas.

Commercial Agreements

During the beta phase, Piclo partnered with all six of the country’s distribution network operators (DNOs) before penning a “milestone” commercial agreement with UK DNO SSEN. This agreement allowed SSEN to use Piclo’s flexibility marketplace to procure flexibility and other ‘smart’ energy services from providers using the online auction process.

Future Plans

As an increasing number of variable generation sources are plugged into the electricity system, flexibility helps manage the influx and additional demand from electrification of heating and transport. Piclo’s offering includes how to best use flexibility to unlock the value of those distributed assets. Given EDP Renewables’ involvement in projects like the recently operational offshore wind development in Moray Firth, it makes sense that the company is seeking involvement in the flexibility market.

Additional Developments

SSEN has also been active in the flexibility arena, launching a round of flexibility auctions on August 12 after successfully adopting the ElectronConnect Flexibility Market Platform (FMP). This indicates ongoing efforts to integrate flexibility solutions into various UK electricity markets.

In summary, Piclo’s international funding from EDP Ventures, alongside the Clean Growth Fund and Future Energy Ventures, will support its global expansion, particularly into the US and Australia. The company’s platform continues to play a crucial role in managing grid flexibility and contributing to the decarbonization of energy systems worldwide.