The integration of renewable energy into the grid presents a significant opportunity for startups to accelerate grid decarbonization. One such startup, U.K.-based Axle Energy, was founded early last year to address this challenge.
CEO and co-founder Karl Bach, along with co-founder and CTO Archy de Berker, recognized the need for software to support the energy transition, particularly in light of the global spike in energy prices triggered by the Ukraine war. Their backgrounds in the energy industry inspired them to create Axle Energy, a B2B back-end infrastructure business focused on connecting flexible assets like electric vehicles, home batteries, and heat pumps to energy markets for grid balancing.
By leveraging Axle’s software, users can be rewarded for helping balance the volatility of wind and solar energy, thereby reducing reliance on fossil-fuel-generated electricity for grid stabilization. Bach explains that Axle’s goal is to decarbonize the grid by dynamically connecting distributed assets to energy markets, reshaping energy demand in real time through smart demand control infrastructure.
Axle’s approach offers a more sustainable alternative to traditional grid balancing methods and aims to eliminate the need for fossil fuels in grid balancing by 2030. The company has already connected over 15,000 flexible assets to energy markets, totaling over 85 MW of capacity, with plans to expand into other markets in Europe.
Through partnerships with device manufacturers like SolarEdge, myenergi, Pod Point, and GivEnergy, Axle enables consumers to earn rewards for participating in grid balancing activities. The company’s software allows for real-time optimization of energy demand, providing end-users with potential savings of up to £400 per year per EV or home battery.
To support its expansion and scale its operations, Axle has secured a $9 million seed funding round led by Accel, with participation from existing investors and notable angel investors. This funding will enable Axle to further develop its software infrastructure and accelerate its growth in the energy market.
As the energy market undergoes a transition towards decarbonization, Axle aims to play a key role in reshaping how energy is managed and consumed. With a focus on distributed energy flexibility and grid balancing, the company is set to drive innovation in the sector and contribute to a more sustainable energy future.
