Europe’s Energy Shift: How Smart Batteries and AI are Empowering SMEs
Cologne-based Einklang has secured €2.2 million in pre-seed funding led by Vireo Ventures to scale its battery-optimised electricity tariff solution for small and medium-sized enterprises (SMEs). This investment signals a growing trend: the democratization of energy flexibility and the rise of software-driven solutions in Europe’s evolving energy landscape.
The SME Energy Challenge
For years, large energy-intensive industries have benefited from tailored regulations and support. However, mid-sized businesses have often been left navigating high electricity prices, price volatility, and complex grid charges. Einklang, founded in 2025 by alumni from Voltfang and Impuls Energy, aims to address this imbalance.
“The issue isn’t renewable energy itself, but rather price volatility, high grid charges, consumption peaks, and a lack of flexibility,” explains Lucas Jonas, co-founder and CEO of Einklang. “Our solution tackles exactly these problems.”
Beyond Hardware: The Power of Optimisation
The funding round, which also included SI Ventures, Saxovent, Angel Invest, Heimatboost, and DnA Ventures, highlights a key shift in investment focus. While hardware – like battery storage systems – is crucial, investors are increasingly recognizing the value of the software that controls and optimises these assets.
Einklang installs and operates on-site batteries for industrial SMEs and uses smart software to determine the optimal times to store, apply, or trade electricity. This approach can reportedly reduce electricity costs by up to 40%.
A Wave of Investment in Energy Tech
Einklang’s raise is part of a broader surge in funding for European energy technology companies. Recent deals include:
- enshift (France): €18.5 million for integrated energy-transition solutions.
- WtEnergy (Spain): €10 million to expand industrial waste-to-energy projects.
- iwell (Netherlands): €27 million for smart battery storage and energy management.
- Dexter Energy (Netherlands): €23 million for AI-powered forecasting and trading optimisation.
- Chapter (Netherlands): €3 million for an AI operating system for sustainable energy installers.
- Anaphite (UK): €1.6 million for dry-coating technology for lithium iron phosphate batteries.
Collectively, these rounds represent approximately €83 million in disclosed funding, demonstrating sustained investor confidence in the sector.
The Rise of Decentralised Energy Systems
This influx of capital is fueling the development of decentralised energy systems, where power is generated and consumed closer to the source. This trend is driven by the increasing availability of renewable energy sources – solar and wind – and the need for greater grid flexibility.
“Only when consumption, storage, and procurement are intelligently coordinated can electricity become both affordable and predictable,” adds Lucas Jonas. “Our goal is to ensure that companies automatically use power when the sun shines or the wind blows – smartly and without any operational complexity.”
What’s Next for Energy Flexibility?
The concentration of funding in battery storage, AI-driven optimisation, and decentralised energy systems suggests several key trends will shape the future of energy:
- Increased AI Integration: AI and machine learning will play a growing role in forecasting energy demand, optimising battery usage, and managing grid stability.
- Energy-as-a-Service Models: Companies like Einklang are pioneering “Energy-as-a-Service” models, offering businesses access to advanced energy solutions without upfront investment or operational overhead.
- Focus on SME Solutions: Historically underserved, SMEs are becoming a key target market for energy tech companies.
- Grid-Friendly Technologies: Solutions that actively support grid stability and reduce peak loads will be highly valued.
“The decisive factor for our investment was the exceptionally strong team at Einklang, with its practical experience from previous ventures and industry expertise,” says Felix Krause, Partner at Vireo Ventures. “Einklang has a clear vision of becoming a decentralised full-service provider for flexible energy systems in the mid-sized business sector.”
Frequently Asked Questions
What is ‘energy flexibility’? Energy flexibility refers to the ability to adjust electricity demand or supply in response to changing grid conditions or price signals.
How can battery storage help SMEs? Battery storage allows SMEs to store electricity when it’s cheap and use it when it’s expensive, reducing energy costs and improving grid resilience.
What is ‘Energy-as-a-Service’? Energy-as-a-Service is a model where companies pay for energy solutions on a subscription basis, rather than making large upfront investments.
What role does AI play in energy optimisation? AI algorithms can analyse vast amounts of data to predict energy demand, optimise battery usage, and automate energy trading.
Did you know? Renewable energy overtook fossil fuels in Europe for the first time in 2025.
Pro Tip: Consider conducting an energy audit to identify opportunities to reduce consumption and improve efficiency.
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