Information on the Target

National Renewable Network (NRN) represents a pioneering platform in Australia that seeks to transform access to renewable energy assets for consumers. By uniquely aligning the interests of energy retailers and customers, NRN aims to create a sustainable energy ecosystem. The company’s vision is not just to enhance the availability of solar energy but to ensure comprehensive access to renewable energy solutions across the country.

Headed by CEO and founder Alan Hunter, NRN is backed by a team whose experience spans engineering, data science, and energy management. Their commitment towards democratizing renewable energy positions them to tackle significant challenges within the Australian energy landscape, particularly the growing market for behind-the-meter solutions such as solar storage systems.

Industry Overview in Australia

The renewable energy sector in Australia is witnessing substantial growth; however, it is facing critical challenges. Energy retailers are increasingly concerned about the 'duck curve', a phenomenon where demand for grid electricity dips during peak solar production hours, consequently impacting their revenues. This has led to a pressing need for innovative solutions that bridge the gap between energy supply and consumer requirements.

As of the end of 2022, only 180,000 residential battery systems were installed across Australian households, indicating a mere 1.6% penetration relative to solar installations. This suggests that despite the growing popularity of solar energy, the adoption of battery storage solutions remains limited primarily due to high costs, making them unattainable for many Australian households.

Moreover, Distributed Network Service Providers (DNSPs) find themselves grappling with voltage maintenance challenges as more households turn to solar and battery systems, further complicating the market dynamics. Energy retailers face an urgent need to adapt and provide compelling value propositions that can capture revenues during daytime solar generation.

NRN’s innovative model aims to address these issues by creating a mutually beneficial framework for energy consumers and retailers, enabling access to renewable energy assets in a way that aligns their objectives.

The Rationale Behind the Deal

Investible’s Climate Tech Fund led a pre-Series A bridge funding round of AUD 1 million in NRN due to the company’s validated business model which is making significant strides in solving critical pain points in the Australian energy landscape. NRN's approach not only markets renewable energy affordability but also offers energy retailers an avenue to retain revenue during solar generation peaks.

Investing in NRN signifies a strategic move to support a scalable solution within the climate tech space that promotes sustainable energy accessibility for all Australians. Their potential to establish long-term, lock-in revenues through this innovative model presents a promising investment opportunity.

Information about the Investor

Investible, through its Climate Tech Fund, aims to support high-impact companies that are leading the transition towards a sustainable future. With a notable track record of engaging with climate tech startups, Investible brings not just capital but also mentorship and strategic guidance to its portfolio companies. Their involvement with NRN emphasizes their commitment to advancing climate technologies that resolve real challenges faced by the renewable energy sector.

Furthermore, partnership with Electrifi Ventures and contributions from angel investors reflect a strong shared belief in NRN's mission and the potential for exponential growth within this market. Investible’s robust network and insight will bolster NRN’s efforts as they prepare for their upcoming Series A round.

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The investment in NRN is poised to be a strategic and promising venture, considering the company’s innovative approach to renewable energy access amid a rapidly changing energy landscape in Australia. NRN’s unique model addresses the pressing needs of both energy consumers and retailers, a dual focus that enhances its market viability.

With a seasoned leadership team equipped with extensive industry expertise, NRN is well-positioned to navigate the complexities of the energy market. Alan Hunter’s prior success with Splend and his current efforts towards democratizing solar and battery access underscore the potential for NRN to become a leader in the renewable energy space.

The upcoming Series A funding round in late 2024 is also indicative of NRN’s growth trajectory, as they aim to scale their operations and secure partnerships with tier 1 retailers like Alinta Energy, opening new channels for collaboration and market penetration.

In summary, this investment reflects a forward-thinking strategy that not only aligns with sustainable development goals but also promises a lucrative return as NRN continues to innovate and expand its influence in the Australian renewable energy sector.

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