August Energy, Energeia launch USD 100M partnership for energy efficiency projects
August Energy, a Singapore-headquartered energy-as-a-service (EaaS) infrastructure platform, and Indian energy efficiency company Energeia have formed a USD 100 million partnership to finance and deliver energy efficiency projects for commercial and industrial (C&I) customers across India.
The partnership, August Energeia, will focus on cooling as a service (CaaS) and upgrades to cooling, heating, steam, compressed air, fuel switching and motor-driven systems. It will also support August Energy-led deployment of solar, wind and storage.
Under the EaaS model, August Energeia will finance, implement and manage the infrastructure, with project economics linked to the energy savings and performance delivered. Customers will therefore be able to upgrade energy-intensive systems without upfront capital expenditure while reducing operating costs and emissions.
The platform will target sectors including pharmaceuticals, automotive, food and beverage, chemicals, cement, steel, hospitality, healthcare, data centres, real estate investment trusts (REITs) and commercial real estate.
Technology and capital
August Energy will provide capital, techno-commercial structuring and business development, while Energeia will contribute energy audits, engineering execution, technology and on-ground sales capabilities. August Energy will bring capital from European, Japanese and Asian institutional investors, including Aravest, Green Tower, Proparco, responsAbility and Aseem.
Energeia will provide Internet of Things (IoT)-based energy audits and an artificial intelligence (AI)-enabled digital platform for project management. The companies said the model will allow energy efficiency investments to be assessed on lifecycle performance and total cost of ownership rather than upfront equipment costs.
“The technology to optimise and decarbonise Indian factories and buildings has been ready for years, but high upfront prices, energy savings uncertainty and L1 procurement mandates drastically limited adoption. By shifting the financial model from high-risk CAPEX to predictable, performance-linked OPEX, we are removing the upfront friction and delivering outcomes rather than selling products,” said Sookrit Malik, Co-Founder and CEO, Energeia.
“India’s next phase of industrial growth will require businesses to become more energy-efficient and resilient without diverting capital away from their core operations. We believe energy infrastructure should increasingly be consumed as a service — with investment, technology and performance responsibility sitting with specialist operators, while customers focus their capital on growth. This partnership with Energeia brings that model to scale. Our ambition is to demonstrate that distributed energy and efficiency projects can deliver measurable value for customers while becoming a credible, scalable infrastructure opportunity for institutional capital,” said Vishal Jain, Co-founder and Head of India, August Energy.
Photo credit: Energeia
