NOX Energy Raises €3M to Scale Energy Flexibility

The big picture: NOX Energy, a Belgian startup, has raised €3 million in seed funding to expand its software that enables heat pumps and solar panels to dynamically respond to electricity prices. The company, founded by Axelle Moortgat, Louis Clermont, and Martin Michaux, aims to become the ‘SWIFT for energy flexibility‘ in Europe. NOX Energy says it has connected over 10,000 devices to its platform.

Why it matters:

• Grid stability: As wind and solar power increasingly dominate Europe’s electricity mix, their intermittent nature creates significant grid instability, requiring flexible energy solutions.
• Household participation: Smart home devices like heat pumps and solar panels can provide crucial flexibility by adjusting their operation based on real-time energy prices, without impacting user comfort.
• Economic benefits: NOX Energy’s platform offers households potential savings of up to 28% and earnings of up to €200 annually, while also generating revenue for manufacturers and grid operators.

How it works:

• Software integration: NOX Energy’s software connects directly to heat pumps and solar panels through existing manufacturer or energy supplier apps, eliminating the need for additional hardware.
• Dynamic optimization: The platform uses real-time electricity prices and forecasts to optimize device operation, allowing heat pumps to pre-heat homes when power is cheap and pause when it’s scarce.
• Flexibility monetization: Grid operators pay for this flexibility, and NOX Energy shares a portion of this revenue with both device manufacturers and participating households.

The catch: NOX Energy faces stiff competition from better-funded rivals like London’s Axle Energy, which manages over 300,000 devices, and Germany’s 1KOMMA5° and Nomos. While NOX aims to be a neutral layer, its success hinges on securing widespread agreement from diverse heat pump manufacturers and energy suppliers, who could also choose to integrate with competitors or develop their own in-house solutions. With 10,000 devices currently connected, scaling rapidly will be critical to establish its ‘neutral layer’ before larger players dominate the market.

Key Facts

• Company: NOX Energy
• Amount: €3M
• Round: Seed
• Investors: Rise PropTech and Volve Capital (co-lead), Seeder Fund, Uneti Ventures, Fair Capital Impact Fund, 100in
• Founders: Axelle Moortgat, Louis Clermont, Martin Michaux
• Sector: Energy Flexibility Software