Peak Power closes on USD 35m of financing from Greenbacker Capital
Greenbacker Capital Management is investing USD 35m in Canadian cleantech company, Peak Power, to accelerate its pipeline of energy storage software and services across the country.
“We’re at an interesting time for the storage market today where a lot of things are aligning to enable tremendous growth in the industry and that’s good for everybody," said Peak Power CEO, Derek Lim Soo, in an interview with NPM.
Peak Power has deployed more than 150 MW of battery and electric vehicle capacity under contract or committed in New York, Massachusetts, Virginia, California, and Ontario, Canada and deployed over 14 million square feet of real estate. The financing from Greenbacker will allow them to expand in the markets and move into new ones, Lim Soo said.
“I think the future is super bright," Lim Soo said. "If you look at what’s happening in the U.S. with the IRA and in Canada with the ITC, I think it’s hundreds of megawatts a year that we plan to deploy in the foreseeable future.”
The financing will also fund new positions within the company and advance its software development. Their chief software, Peak Synergy, is geared towards helping commercial real estate, industrial customers, and energy storage project developers meet objectives like net zero initiatives, electricity grid reliability and enable higher ROIs with proprietary forecasting.
The forecasting leads to better optimization of assets, which results in better revenues and less wear and tear on devices because they're not operating them as much.
"Peak Power is differentiated in its ability to operate, optimize, and manage not just energy storage, but multiple behind-the-meter assets as well, including building load and electric vehicles," said Trixie Blair, a principal at Greenbacker.
"It can also provide turnkey solutions with development, construction, and financing capabilities, allowing for a seamless offering for customers to generate savings and additional revenue. Just as importantly, understanding that these are long-term partnerships with building and asset owners, Peak Power’s focus on exceptional customer service makes it a cut above the rest in the industry."
Alexa Capital served as financial advisor to Peak Power. Prior investors providing additional investment in this round include Osmington Inc, BDC Capital, Export Development Capital, Hatch, Sensata Technologies and The Atmospheric Fund, according to the press release.
Lim Soo said it's tough to predict what the future is going to look like, except that it's going to be "very promising and it's going to be fast."
"I think we have an amazing window of opportunity over the next couple years to put things in the ground--we're looking forward to that challenge," he said.
*This story was originally published exclusively for NPM subscribers in May.
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