tem., an AI transactions platform that enables UK businesses to buy energy directly from renewable generators for less than the cost of traditional fossil fuels, has secured £10.5 million in Series A funding, bringing the company’s funding to £13 million.
tem.’s proprietary algorithm directly matches businesses with renewable energy generators in real-time. tem.’s AI engine forecasts fluctuations within energy supply and demand, processing 1.8 billion matches every second. This approach not only bypasses the inefficient wholesale market but also promises to save businesses up to 25 per cent on their energy bills while providing 100 per cent traceable, renewable energy.
“Small and medium-sized businesses are critical in tackling climate change and are desperate for energy they can trust after seeing their bills soar by 124 per cent during the recent energy crisis. We built tem. so that any UK business can get affordable energy while powering the clean energy transition from their doorstep,” said Joe McDonald, tem. CEO and co-founder.
tem.’s platform is uniquely primed for this growth, connecting businesses directly with the burgeoning network of over 22,000 small, medium, and large renewable generators across the country. This newly decentralised supply is created from everything from large-scale wind farms to family-owned solar parks and local weirs generating hydropower.
But to date only megacorporations – able to negotiate complex Power Purchase Agreements (PPAs) directly with these generators – have been in a position to truly benefit. 99 per cent of UK businesses have no option but to purchase energy from the wholesale market, the same way of procuring energy since the 1980’s.
This is an opaque, inefficient and volatile market, where middlemen capture £1.65bn each year in transaction fees at the expense of the end customer, and businesses lack meaningful transparency or control over their energy mix.
Atomico led the investment with participation from existing investors AlbionVC and Revent, which was joined by notable angels Holly and Sam Branson and Wise CTO Harsh Sinha and CPO Nilan Peiris. As part of this round, Atomico Partner Terese Hougaard will join tem.’s board.
Atomico partner Terese Hougaard added:
“tem. has not only seen impressive growth to date; the future potential is massive with $1trn in direct renewable energy transactions to unlock globally. With their deep energy experience and expertise from Limejump and Shell, nobody is better placed than Joe, Jason, Ross and Bartek to seize this opportunity.”
