Impact-led investment and solar-as-a-service provider Ecoligo has just raised €10 million to democratize the energy transition on a global scale. The fresh funds will enable the Berlin-based team to provide solar energy to more companies in emerging markets.
Moving towards more sustainable, renewable and reliable energy sources is part of a global need to address the climate crisis and create a more sustainable energy future for generations to come.
Whilst we might be familiar with the urgency to transition Europe’s energy system to renewable sources, it is a global need and nations need to work together to achieve. For emerging nations, it’s even more challenging, and there’s more urgency, to go green. Emerging markets are some of the most impacted by the climate crisis, and they are also where energy demand is increasing most rapidly.
Despite this, there is an inherent disparity in terms of these markets transitioning to sustainable energy sources – with access to solar projects more complex and costly than they need to be. Ecoligo is aiming to change this, driving forward a global energy transition from emerging markets. The impact-led innovators have just raised fresh funding to drive forward its mission.
The €10 million Series A round was led by new investor FRV-X, the venture division of Fotowatio Renewable Ventures (FRV), a world leader in the development of sustainable energy solutions and part of Abdul Latif Jameel Energy.
With this investment, FRV is expanding its portfolio to include the commercial and industrial customer segments through Ecoligo’s work.
Felipe Hernandez, Chief Innovation Officer at FRV-X: “With its focus on commercial and industrial facilities, ecoligo perfectly complements our activities in the field of large-scale solar farms. Our investment in ecoligo is sustainable in two ways, not only in terms of onsite green energy production, but also the democratization of the investment in renewable assets, giving a way to the small investor to take an active role supporting the emerging economies energy transition. The company has proven continuous growing capacity, thanks to the strong development capacities and commitment with the retail investors, which is a sign of long-term success as well as high resilience.”
Ecoligo will use the investment sum to continue to grow sustainably, expand existing markets, and effectively drive forward the global energy transition. In addition, Ecoligo intends to further develop its digital impact investing platform and offer the opportunity to invest in its projects in more countries.
Fady Jameel, Deputy President and Vice Chairman of Abdul Latif Jameel said: “Our investment in ecoligo comes in line with our commitment to support innovative business models in the renewable energy sector whilst still delivering a positive impact. Both FRV-X and ecoligo share the same vision of democratizing the energy transition and creating a clean future for people around the world, and in particular, those in the global south. We will continue to look for opportunities to make impact-driven investments that support our efforts in initiating, driving, and maintaining the green energy transition.”
Founded in Berlin in 2016 by Martin Baart and Markus Schwaninger, Ecoligo is an impact investment provider that implements solar-as-a-service projects in emerging markets – countries such as Kenya, Vietnam, and Chile.
The firm implements photovoltaic systems on company buildings to enable companies to access sustainable sources of energy. The projects are enabled by committed and environmentally conscious investors who want to fight the climate crisis with their targeted investments in solar projects while earning significant interest. The solar plants supply companies relying on fossil energy sources with more affordable and sustainable, clean electricity produced in-house.
By supplying commercial and industrial enterprises in the world’s fastest-growing economies with solar energy, Ecoligo measurably contributes to reducing harmful CO₂ consumption. To date, Ecoligo has implemented 169 projects with a total output of 82.4 MWp – more than all the PV plants in Hamburg.
The success of the global energy transition will rely on these fast-growing markets to industrialize on a basis of using renewable sources of energy. It means that these markets can build upon sustainable foundations and help win the race in the battle against climate change.
Currently, there is a funding gap for solar projects in these countries making access to financing from traditional sources more difficult, which is why Ecoligo offers a full-service solution including planning, construction, maintenance, and financing of the plants through retail investors.
The projects signed so far will contribute towards saving an estimated 1 million tonnes of carbon emissions. With this new funding, the Berlin-based firm will be able to drive forward its mission, enabling a global energy transition as well as expanding its footprint.
Martin Baart, CEO of Ecoligo GmbH: “With FRV-X we have found the perfect partner to enable even more companies in emerging markets to access clean energy. Through the alliance, we will not only be able to grow even more, but offer more people the opportunity to contribute to the global energy transition through private investment.”