Reel secures €5 million to expand corporate PPA business

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Denmark’s Reel, a spinoff of DTU, has closed a €5 million seed round led by UK-based Transition, an early-stage venture capital firm. The company develops software and services to be able to offer the commercial and industrial (C&I) market customized electricity contracts that are linked to solar and wind farm power purchase agreements (PPAs).

The new capital will be used to scale operations, expand internationally, and grow the team. Early investors also participated in the round, namely The Footprint Firm, a Danish investment company, and Germany’s UVC Partners, an early-stage investor.

Founded in 2020, Reel develops software that analyzes the electricity usage of customers, along with energy consumption, budget, and risk tolerance. It then uses the information as the basis for electricity contracts tied to solar and wind park PPAs. The contracts are set for five- to 10-year periods.

“Reel electricity contracts provide companies with attractive, fixed electricity prices that mitigate the volatility of energy markets by offering price predictability and budget certainty,” Reel CEO Jon Sigvert told pv magazine.

Acting as an electricity supplier, Reel enables businesses, even smaller ones, to switch to renewable energy. Sigvert pointed out that the companies Reel supplies electricity to are often those who cannot access PPAs on their own due to constraints related to the size of their electricity consumption, credit rating, and legal expertise.

Some of Reel's customers are Baettr, a German wind turbine component manufacturer, Viggo, a Danish electric vehicle ride-sharing company, and compatriot Combitherm, a polyamide film manufacturer.

The company is not yet disclosing how large an installed base of solar and wind assets it has already commissioned, except to state that it is currently supplying electricity in Denmark and facilitating PPAs across Europe, including in Denmark and Poland.

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