🌎 Summer reading for energy nerds #306

Happy Monday!

We’re getting our summer reading done 🤓 We’ve got breakdowns of four cool papers about the hottest topic: data centers and electricity affordability.

In deals, $450m for AI material discovery in Cambridge, $300m for silicon-anode batteries in California, and $42m for carbon and sustainability management in Tokyo. 

In other news, extreme weather impacts around the world, new DOE grants, and tariffs are back.

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Summer's hottest papers 🔥

It may be summer break, but the energy wonks have been busy. They’ve published a bunch of energy papers on one of the hottest questions out there: how do you meet soaring load without sending bills sky-high? We rounded up the research in four papers from this month. 

What happened

Lazard published its Levelized Cost of Energy+ (LCOE+) Version 19, the industry's most-cited annual benchmark for what it costs to build new generation, unsubsidized, on a $/MWh basis.

• This year, costs rose across every tech type. Higher capital costs, sustained interest rates, and tariff pass-through drove this. Utility-scale solar climbed 18% to $40-98/MWh and onshore wind to $37-99/MWh, both still the cheapest new build, even unsubsidized. New gas hit a 15-year high: combined cycle, $51-129/MWh, and peaker gas, $144-276/MWh, as turbine shortages stretch development timelines and push up equipment prices. 

• Lazard’s levelized cost of storage (LCOS) also showed reversals after the past two years of declines. Standalone 4-hour systems are back up to $210-292/MWh, after tariffs on Chinese lithium-ion cells cut off the cheap cell supply 
• Lazard said what we said in our spring report, The Fastest MW - we’re in a "speed-to-power era" where value shifts to whoever can deliver capacity fastest.

LBNL put out two papers: Revisiting the relationship between demand growth and electricity prices (O'Shaughnessy et al., Joule, July 2026) and Retail Electricity Price Trends and Drivers: 2026 Data Update. They push back a bit on the "data centers spiking bills" narrative:

• National average rates are up in nominal terms, roughly flat in real terms. Nominal residential rates rose 33% since 2019, but adjusted for inflation, 2025 national average retail prices are just 3% above 2019, and 6% below 2010. 
• Break it out by region and the picture splits. Nationally, real prices rose only about half a cent per kWh since 2019, but California is up more than 6¢/kWh and the Northeast 2-4¢, while much of the middle of the country fell.

• Historically, load growth has pushed rates down, not up, but that could change. Higher demand has correlated with lower unit prices, because new megawatt-hours spread fixed grid costs over a bigger base. But growth in constrained regions (like PJM) forces urgent high-cost buildouts and clears expensive capacity auctions before cost-allocation catches up. And that trend is rising with projected C&I growth.

The DOE released its draft 2026 National Transmission Needs Study, a map released every three years of where the grid is congested and what it costs consumers.

• Congestion added $12bn to wholesale power costs in 2024, up from $11bn in 2023 (though down from the $21bn spike in 2022). Most of it is concentrated in just 5% of hours, during cold snaps, high net load, and price volatility.
• Inter-regional and cross-interconnection links are the highest value fix, with NYISO, NorthernGrid South, and MISO showing the biggest within-region congestion relief potential. 

Why it matters

Electricity prices are a hot button political issue and an easy talking point. But not everyone's talking about the same thing. A few things are true at once:

• Electricity markets are complicated, and they vary a lot by region.
• Regardless of demand shifts, the grid is old, and we were going to have to upgrade it anyway. 
• There's a squeeze from the supply side, as new-build costs rose across every generation technology this year. 
• Load growth is coming. We're still not sure exactly how much. And preparing for it is expensive.

The thing that gets lost, though, is that data center load growth hasn't really even hit yet. And there's a lot that can be done before it does. Suggestions from the authors include:

• Flex the load. Curtailing large loads during peaks lets new demand ride on spare capacity, instead of forcing expensive buildouts. 
• Add more DERs. Behind-the-meter resources can add flexibility to the system in a short amount of time tackling bridge capacity and affordability simultaneously.  
• Make new large loads pay. The regulatory guardrails for retail customers are being put in place: large-load tariffs, up-front payments, collateral, long-term contracts, bring-your-own-generation, exit fees.
• Build inter-regional transmission. The DOE identified that the single highest-value congestion fix is more transfer capacity between regions. Different regions could swap lower-cost electricity year-round and deliver more during expensive and dangerous peak grid stress periods.
• Lean on the cheapest, fastest resources. Renewables and storage are still the lowest-cost new build, where the bottleneck is permitting speed, not economics. 

Deals of the Week (7/19-7/26)

VC / Growth

⚒️ CuspAI, a Cambridge, England-based AI-driven materials discovery platform, raised $450m in Series B funding from Kleiner Perkins, New Enterprise Associates (NEA), AMD Ventures, Basis Set Ventures, Bezos Expeditions, and other investors.

🔋 Sila Nanotechnologies, an Alameda, CA-based next-generation battery materials developer, raised $300m in Growth funding from Atreides Management, Sutter Hill Ventures, 8VC, Bessemer Venture Partners, Matrix Partners, and T. Rowe Price.

🌱 Asuene, a Tokyo, Japan-based AI-powered sustainability and carbon management platform, raised $42m in Series D funding from Decarbonization Partners, Daikin, Energy Environmental Investment, GLIN Impact Capital, and other investors.

✈️ Greenjets, a London, England-based electric jet engines developer, raised $40m in Series A funding from Blossom Capital, NATO Innovation Fund (NIF), Narotam Sekhsaria family office (NSFO), National Security Strategic Investment Fund (NSSIF), and Tanglin Venture Partners.

👕 Syntetica, a Paris, France-based developer of nylon recycling technology for complex textile waste, raised $30m in Series A funding from Bpifrance Green Venture, 1st Kind, Athletico Ventures, EQT Ventures, European Innovation Council (EIC), and other investors.

🌾 MoA Technology, an Oxford, England-based developer of sustainable alternatives to herbicides, raised $30m in Series C funding from Oxford Science Enterprises, Supernova Invest, Agri Investment Fund (AIF), GrainInnovate, Infinity Investment Partners, and other investors.

🥩 Phytokana Ingredients, a Calgary, Canada-based developer of plant-based ingredients from fava and hemp, raised $18m in Seed funding from undisclosed investors.

💧 Circular Materials, a Cadoneghe, Italy-based recoverer of metals from wastewater, raised $13m in pre-seed funding from 360 Capital, CDP Venture Capital, Corbites, EIT RawMaterials, European Innovation Council (EIC), and Lumar S.r.l.

🏭 CullBeck, an Auckland, New Zealand-based hydrogen-powered iron reduction technology developer, raised $12m in Seed funding from Punakaiki Fund, 2040 Ventures, Icehouse Ventures, K1W1, Motion Capital and other investors. 

☀️ Raydean, a Jaipur, India-based manufacturer of solar mounting solutions, raised $10m in Seed funding from undisclosed investors.

⚡ Bluecore Energy,a Long Beach, CA-based developer of transportable micro nuclear reactors, raised $10m in Pre-seed funding from Slauson & Co., Capital Factory, Chris Larsen, Harlem Capital, HartBeat Ventures, Karman Ventures, and other investors.

🥩 Plantopia, a Caesarea, Israel-based developer of plant-based functional protein ingredients, raised $9m in Seed funding from Schreiber Foods, Inc. and Siddhi Capital.

🌾 Contact BioSolutions, a Melbourne, Australia-based developer of bio-based herbicides, raised $6m in Seed funding from undisclosed investors.

🔋 TaiSan, a London, England-based quasi-solid-state sodium battery developer, raised $5m in Seed funding from Eos Advisory, Mercia Ventures, AFI Ventures, Adeline, EverQuest Capital Partners, and other investors.

📦 Aampere, a Stuttgart, Germany-based operator of a used EV marketplace, raised $5m in Seed funding from Trind Ventures, G-FUND, GIMIC, and Vend.

Project Finance / Debt

🔋 Fidra Energy, an Edinburgh, Scotland-based battery storage developer and operator, raised $311m in PF Debt funding from ABN AMRO, China Minsheng Bank (CMBC), MUFG Bank, Mizuho Bank, and Siemens Bank.

⚡ AMPYR Distributed Energy, a London, England-based renewable energy developer, raised $194m in Debt funding from Benefit Street Partners and Crédit Agricole Corporate and Investment Bank (CIB).

⚡Greenvolt, a Porto, Portugal-based renewable energy infrastructure developer raised $180m in Post-IPO-Debt funding from undisclosed investors. 

⚡ Aukera Energy, a Brussels, Belgium-based renewable energy developer focused on utility-scale solar and battery energy storage projects, raised $55m in PF Debt funding from International Finance Corporation (IFC).

⚡ ACME Solar, a Gurgaon, India-based developer, builder, and operator of renewable energy, raised $39m in PF Debt funding from REC Limited.

🌱 Asuene, a Tokyo, Japan-based cloud solution for carbon emission visualisation, raised $18m in Debt funding from Sumitomo Mitsui Banking Corporation (SMBC).

🔋 Modo Energy, a London, England-based energy storage and renewable asset benchmarking platform, raised $17m in Debt funding from CIBC Innovation Banking.

🛵 Lug+Carrie, a Fitzroy, Australia-based operator of eBike subscriptions, raised $13m in Debt funding from Catalytic Impact Capital.

☀️ Raydean, a Jaipur, India-based manufacturer of solar mounting solutions, raised $10m in Debt funding from undisclosed investors.

Exits

🔋 Prevalon Energy, a Heathrow, FL-based provider of integrated battery energy storage, was acquired by Nextpower at an implied valuation of $365m.

🌱 Secaro, an Oxford, England-based decarbonisation platform for suppliers, was acquired by Asuene at an implied valuation of $37m.

⚡ Royal Uranium, a Vancouver, Canada-based portfolio of uranium and gas royalties, was acquired by Fusion Fuel at an implied valuation of $15m.

Funds

Pictet Alternative Advisors, a Geneva, Switzerland-based alternative investment unit of Pictet, closed its Environment Co-Investment Fund I at $253m, above its $200m target, to co-invest in companies addressing greenhouse gas reduction, pollution control, and the circular economy.

This is a sample of deals available for Currence clients. Can’t get enough deals?

Reading List

🌎 Climate impacts have been extreme this summer: ~300,000 people were evacuated across France and Spain as a third consecutive heatwave pushed temperatures past 44°C in southern Europe, where wildfires are raging. A drought has also hit the other side of the world, as low levels in the Panama Canal affect shipping and freight rates. [Link, Link]

🧪 DOE announced 278 awards ($293m) under the Genesis Mission, the first batch of a broader $5bn AI-for-science initiative. Focus areas span nuclear energy, critical mineral extraction, intelligent chip design, and commercial fusion. [Link, Awards list]

Genesis is the Trump DOE's flagship science awards program. Notably, several of the priority areas map directly onto energy, climate, and manufacturing. It’s still early stages though: 168 are university-led, 87 lab-led, and only 19 company-led.

🇨🇦 Trump restarted the trade war with Canada, putting a 50% tariff on cement and other building inputs. [Link, Heatmap analysis]

Tariffing Canadian cement effectively raises the cost of transmission projects and infrastructure, because building out the cement industry requires high capex and long construction timelines. 

📈 US power sector CO2 emissions jumped 4% in 2025, driven by a 13% surge in coal-fired generation, per new EIA data. However, natural gas fell 4%, wind grew 3%, and solar generation grew 34%. [Link]

Even in a year filled with political headwinds and demand growth, renewables continued their capacity trajectory. 

✈️ HAMR Energy secured AUD 32m for a methanol-to-jet SAF plant designed to produce ~140m liters/year, the first project funded under Australia's Low Carbon Liquid Fuels Fund. [Link]

It’s a meaningful SAF scale-up in Australia and the first commercial deployment of the newly ASTM-certified MtJ pathway (see our issue #302).

⚖️ The National Academies of Sciences, Engineering and Medicine released a report backing extreme event attribution science, a research field the NYT notes could help governments hold fossil fuel companies liable for climate damages. [Link]

Opportunities & Events

📅 Entrepreneurs Roundtable 216: ​Join the roundtable in NYC on August 4th from 6-8pm for an evening of startup pitches, investor insights, and community networking. This month, hear from ​Brian Laung Aoaeh at REFASHIOND Ventures and five founders as they pitch their startups. Apply to pitch in a future month here.

💡 The Greenhouse: For ambitious early-stage ClimateTech startups and spinouts to validate their business models, secure pilot projects, and raise investment. Includes £20k equity-free grant and access to Imperial College London's facilities, expertise and networks. Apply by August 21st. 

💡 The Sustainable Food Accelerator: In partnership with the Bezos Centre for Sustainable Protein, the accelerator helps sustainable food ventures generate the technical, commercial, and regulatory evidence necessary for pilots and investment. Includes up to £100k equity-free funding, plus access to up to £2m in follow-on investment. Apply by August 21st.

💡 Climatebase Fellowship: Participate in a 12-week climate career accelerator that helps people find their place in the climate economy, through a structured curriculum, a global community of peers, and direct access to the experts and leaders working on the front lines of climate. Join a community of thousands of climate professionals. Apply by August 24th.

Jobs

Data scientist, Geostatistics @Material Difference

Founding Engineer - Back End, Full-Stack @Material Difference

Head of Revenue, Senior Account Executive @Currence

Director of Data Strategy & Insights @Elemental Impact

Senior Business Development Manager B2B Carbon Markets @Carbonfuture

Lead Data Analyst, Commercial Analytics @Octopus Energy UK

VP, Communications @XPrize

📩 Feel free to send us deals, announcements, or anything else at [email protected]. Have a great week ahead!