The market for industrial battery storage systems is picking up speed: The Munich-based startup encosa has secured total financing of 25 million euros to further expand its portfolio of battery storage systems used commercially and industrially. Realyze Ventures, one of Europe’s leading sector-focused early-stage VC funds, is leading the equity financing, with participation from Verve Ventures, Blum Ventures, Kopa Ventures and Bayern Kapital, as well as existing investors and several business angels.
encosa is redefining the possibilities of access and operation for commercial and industrial companies in battery energy storage systems (BESS). At the same time, the company secures a scalable debt facility from a debt investor – a clear sign that leading financial institutions are convinced of the scalability and reliability of the model.
Battery storage systems as a response to volatile energy prices
Rising electricity prices, growing grid charges and stricter CO₂ requirements are putting increasing pressure on companies in Europe. Battery storage systems are considered a key technology for reducing energy costs, reducing load peaks and generating additional revenue through electricity trading. However, especially in medium-sized companies, their use often fails due to high investment costs and complex implementation processes. encosa wants to remove precisely these hurdles.
Use instead of ownership as a solution
The company offers commercial and industrial customers battery storage systems as a complete solution – without any initial investment of its own. encosa is responsible for the planning, financing, installation and operation of the systems. Financing is flexible: customers can choose between buying, renting or leasing – encosa either brings the capital or accompanies the direct investment. The company generates revenue both through energy trading and through the optimization of customers’ energy consumption. In doing so, encosa is pursuing a business model that goes beyond traditional energy services. The company is actively building up its own portfolio of battery storage systems and participating directly in the revenues.
Software as a decisive lever
A central element for profitability is its own technology platform. It combines “behind the meter” – i.e. the optimization of energy consumption and the reduction of energy costs – with “front of the meter”, the marketing of surplus capacity on the electricity market. In this way, encosa significantly increases the cost-effectiveness of each installed system. Depending on the consumption profile and market conditions, the investment typically pays for itself within 18 months to five years.
The fact that the model is meeting with a high level of interest is already evident in the early phase. In a short time, encosa was able to secure a large number of projects with a significant total volume. Its customers include companies from logistics, industry and the real estate sector.
Battery storage systems are moving into the focus of investors
Battery storage systems are becoming a central infrastructure for the decarbonization of industry and real estate. At the same time, they are increasingly establishing themselves as an independent and attractive asset class in view of the high returns from energy trading. Accordingly, interest is growing not only among energy companies, but also among infrastructure investors and asset managers throughout Europe.
For Realyze Ventures, the investment fits strategically into the portfolio: The fund is closely networked throughout Europe with the construction and real estate industry, which is under increasing pressure to integrate energy efficiency and decarbonization into projects. Against this background, Realyze Ventures is ideally suited to actively support encosa in market access and scaling.
The equity raised is to be used primarily for the expansion of the team, the faster implementation of projects and the further development of the technology platform. The debt financing is intended for the construction of further battery storage systems.
“In modern real estate, battery storage systems are a crucial lever for achieving sustainability goals and maximizing profitability through diversified returns. encosa provides owners with a holistic solution and facilitates the transition to smarter and more efficient building operations,” says Kai Panitzki, General Partner at Realyze Ventures.
And Marc Stilke, Venture Partner at Realyze Ventures, adds: “We were particularly impressed by how well encosa understands the requirements of its customers. This is also reflected in the numerous projects that have already been won. In addition, the company differentiates itself from its competitors by its own technology. This makes storage operations more efficient and ensures that investments pay off more quickly.”
“Battery storage systems are conquering German SMEs. The question is no longer whether, but how quickly. encosa makes it easy for every company to reduce energy costs without effort, without risk and without their own investments,” explains Sascha Koberstaedt, founder and CEO at encosa.
“Storage projects are systematically underestimated. For medium-sized companies, they are a complex infrastructure project and the topic is by no means over for them when they go into operation. That’s why encosa not only delivers savings from day one, but also minimizes the operational risk of storage management,” emphasizes Sebastian Becker, founder and COO at encosa.
