August 25th, 2020 — Widespread, reliable, and affordable access to electricity has arguably done more to shape the last century than any other development in modern history. Yet despite well over a billion people gaining access to electricity since 2000, 840 million still lack access and another billion do not have reliable access.
The majority of this century’s new electricity access has occurred through new central grid connections, primarily using power generation from fossil fuels. Renewable sources, however, now account for the largest portion of new generation in emerging markets, and non-centralized technologies are enabling novel access in rural areas. Despite the temporary decline in microgrid installations in developed markets as a result of COVID-19, the IEA predicts that off-grid and mini-grid solutions will account for 71% of global new electricity connections by 2030.
Utilities and microgrid operators in emerging markets face unique challenges in supplying power. Increasing operators’ visibility into distribution systems empowers them to operate in a more efficient and financially sustainable manner, which in turn allows them to invest in reliability, access, and renewables. SparkMeter’s low-cost grid management solution enables utilities and microgrids to improve and digitize grid performance, simultaneously increasing energy access and mitigating carbon emissions.
Challenges Facing Utilities and Microgrids in Emerging Markets
Utilities and microgrid operators in emerging markets face significant barriers to achieving greater reliability and profitability. Most distribution utilities operating in emerging markets (as well as many in developed markets) have limited visibility into distribution system data, and lack robust digital models that allow for customized grid planning and improved financial performance. Because utilities in emerging markets often deliver electricity across many small accounts, the absence of accurate usage data also presents challenges to balancing supply & demand and managing revenue loss due to non-payment.
While existing conventional, pre-paid, and advanced metering infrastructure solutions are deployed across emerging market grid infrastructure, they fail to comprehensively and cost-effectively address market-specific needs such as automating billing and payments, managing load, communicating with customers, and remotely monitoring theft.
How SparkMeter Enables Reliable and Efficient Power Distribution in Emerging and Developed Markets
SparkMeter’s low-cost grid management approach combines patented two-way meter communication with smart grid software designed specifically for hard-to-reach and low-consumption end-users. Their plug-and-play system allows for flexible billing, customer communications, and remote monitoring and control of grid assets.
Having worked primarily with microgrids and smaller utilities across Africa, Asia, and South America to date, SparkMeter is now poised to expand its work with large incumbent distribution utilities across the globe. SparkMeter’s new Digital Solutions offering enables utilities in both emerging and developed markets to digitize operations, access robust data analytics, and gain greater visibility into their distribution systems. The technology reduces distribution inefficiencies and enables utilities to avoid system capital upgrades through non-wires alternatives like demand response and DER integration.
SparkMeter Raises Series A
In 2018, Powerhouse Ventures participated in SparkMeter’s seed round as our fund's very first investment. Since then, SparkMeter has grown their sales from 30,000 meters to over 100,000 across 25 countries worldwide.
Today, SparkMeter announced the close of an $12M Series A financing, led by Clean Energy Ventures and Breakthrough Energy Ventures with participation from Total Energy Ventures, Goodwell Investments, and Alitheia Capital. We look forward to continuing to work with Co-Founder & CEO Dan Schnitzer, Co-Founder & COO Arthur Jacquiau-Chamski, and the entire SparkMeter team to support reliable, affordable, and clean electricity.
To read more about Powerhouse Ventures’ other publicly-announced investments, visit our Insights page.