By Kristian Vennemoe
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23. October, 2023
Quality Energy Data at a Low, Predictable Cost
How can we cover installation costs and take on all operational and financial risks associated with energy data? This is a frequent question we receive when explaining our business model to PropTech companies and other service providers in the energy data industry.
We assume all the financial risks associated with installation, operation, and maintenance, while claiming to deliver better and more reliable energy data than anyone else in the market.
Let us elaborate on how we can deliver our services - and why we have chosen to do it this way.
An Industry Challenge
The potential for energy efficiency in commercial buildings is vast, but there is a long way to go before the industry is perceived as "smart" and "energy-efficient".
The primary challenge? A suboptimal infrastructure plagued by measurement errors, low resolution, data gaps, and unpredictable operating costs.
Everyone in the energy optimization sector is currently working on solving these challenges individually and for themselves. Instead of finetuning and developing their software, PropTech companies spend a lot of resources on data collection.
We aim to solve this problem for everyone.
Thinking Long-Term
Investing in measurement equipment is expensive, and maintaining accurate energy data is resource-intensive. We specialize in everything related to energy data and offer high-resolution energy data through an API under a licensing model, where we assume the financial risk.
Most of our revenue lies in the future, while our costs run from day 1. This compels us to foster long-term relationships with our customers, driving us to continually enhance our services.
By exclusively focusing on energy data, we can allocate all our resources to ensure the provision of the best and most reliable data. Rather than developing our own software, we seek partnerships with service providers to expand the reach of this valuable data.
It offers the highest long-term economic return for us - and the greatest societal impact.
Financially Robust Ownership with Social Responsibility
Our business model depends on having a solid owner with a multi-decade perspective. Revenues are distant, costs arise early, and a strong commitment to social responsibility is vital.
Thankfully, we are backed by Å Energi, a financially sound power company with a vision to make sustainable investments profitable for more people. Their ownership provides the stability needed to make our innovative approach viable, extending beyond quarterly financial statements.
