As energy systems become increasingly decentralized, millions of households are acquiring distributed energy resources that they receive at wholesale prices through AI-managed batteries. However, the situation differs in Europe and several other regions.
Grids experience strain during expensive evening peak hours, while surplus green energy is often lost during the day. This leads to a sharp increase in electricity bills, leaving consumers in a difficult position. To solve this problem, Amber Electric has raised $78.5 million to implement battery automation in Europe.
Amber Electric, a Melbourne-based company founded in 2017 by Chris Thompson and Dan Adams, announced the raising of $78.5 million in Series E funding, equivalent to approximately $56 million. The round was led by 1GT, a private climate equity strategy from Morgan Stanley Investment Management.
1GT is a climate-focused private investment strategy that supports growing companies developing decarbonization solutions in the energy, mobility, food, agriculture, and circularity sectors. E.ON, one of the largest energy suppliers in the UK and the largest energy network operator in Europe, also participated in the round. For Amber, this is a significant step forward compared to previous rounds and its largest funding raise to date.
The company acts as a retail energy provider, serving Australian households directly, and has grown to become the largest battery automation provider in the country. Amber's core product is a distributed energy resource platform that gives households access to wholesale energy prices by optimizing asset storage and generation in real time.
The central technology is called SmartShift—an advanced AI-powered software that combines wholesale energy price forecasts, household solar energy production, and real-time consumption to maximize customer revenue. Amber reports holding over 50% of the Australian battery automation market share. This dominance was achieved by offering true wholesale pricing, not markups, and generating revenue from a small monthly subscription.
The new round will be aimed at meeting the growing demand for solutions that allow consumers, utilities, and energy systems to better control distributed energy resources and optimize renewable energy on a larger scale. Europe faces a problem similar to Australia's, but on a much larger scale. Solar and wind energy penetration is rapidly increasing, electric vehicle adoption is accelerating, and grids are under strain. European utilities are looking for ways to unlock flexibility from homes without building new peak power plants.
Amber's partnership with E.ON provides a clear path to market entry. E.ON serves millions of customers across Europe and actively invests in energy management and flexibility. The 1GT team from Morgan Stanley noted that as energy systems become more decentralized, they see a significant opportunity to help utilities unlock the flexibility of distributed energy resources at scale, while helping households derive greater value from their existing energy assets.
Chris Thompson, co-founder of Amber Electric, stated that this funding will help deliver the company's automation to European households. These households are also investing in solar panels and batteries, but they lack the software to optimize them. The capital injection will be used for further growth and expansion in Europe. Additionally, funds will go towards developing Amber's native AI platform to support more types of assets. The third focus area is strengthening the retail and flexibility business in Australia.