In 2023, Edoardo Dellepiane and Raffaele Sertorio launched Niko Energy, recognizing significant potential in Mexico’s nascent solar sector. Although numerous regions in the country enjoy abundant sunlight, there is a surprising scarcity of solar infrastructure.
After over a year of assisting solar providers in the sale, planning, and financing of panels for homeowners and small commercial properties, they identified yet another opportunity: the establishment of Mexico’s inaugural virtual power plant.
The demand for electricity is on the rise in Mexico, and international corporations are eager to open more factories in the nation, contingent upon access to stable power. However, Mexico’s power grid is under strain, and widespread blackouts were reported last year due to a drought that significantly impacted hydropower generation. A virtual power plant (VPP) consolidates and manages resources like home batteries, thermostats, and electric vehicle (EV) chargers, helping to regulate their contributions to and withdrawals from the grid to alleviate these issues.
“The new government has been very focused on this issue,” Dellepiane remarked to TechCrunch. “Our aim is to be the company that oversees the largest collection of decentralized energy resources in Mexico.”
The strategy involves continuing to finance additional solar installations, according to Andrés Marquina, Niko’s strategy lead. The volume of projects that Niko has supported has increased by 20% each month, as reported by the company. To develop its VPP, Niko is also starting to offer battery storage solutions to existing solar clients while seeking to acquire portfolios from businesses looking to divest their assets. The goal is to aggregate several megawatts of capacity at the outset, stated Marquina.
This renewed emphasis on Mexico and the VPP initiative marks a departure from the company’s earlier strategy of replicating its solar installation services throughout Latin America. “We recognized that Mexico holds an immense untapped potential, so we are concentrating on excelling in one nation before expanding to others,” Sertorio explained.
Historically, Niko primarily serviced homeowners and small enterprises, which the founders noted were inadequately served by other market players. While the startup will continue to cater to these customers, it has begun to actively engage larger businesses as well.
Similar to its offerings for smaller clients, Niko will also provide financing and facilitate solar panel installations for larger corporations. This arrangement functions as a fee-for-service model, wherein the service is electricity. Companies can terminate the contract at any time, Dellepiane noted, at which point Niko will uninstall the solar panels. However, given that Niko anticipates clients will see significant savings on energy costs, the founders believe such cancellations will be rare. “It offers them reassurance,” Dellepiane added.
To support more installations and develop the VPP framework, Niko has successfully secured $8 million in equity funding, the company revealed exclusively to TechCrunch. This funding round was led by QED Investors, with contributions from 468 Capital and Picus Capital. Additionally, the company raised $15 million in debt financing.
Compiled by Techarena.au.
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