Munich-based startup Co-Power has raised €6.4 million (US$7.3 million) to expand its energy infrastructure solutions for Europe’s industrial sector.

The round was led by Cherry Ventures, with participation from Abacon Capital, Aurum Impact, and former Encavis CEO Dierk Paskert.

Founded in 2024, Co-Power installs and operates on-site battery storage and solar PV systems for industrial clients, offering up to 50% energy cost savings without upfront investment.

The funding will support Co-Power’s rollout of large-scale systems and the launch of an industrial virtual power plant.

This decentralized energy network aims to stabilize renewable energy supply, reduce price volatility, and improve resilience.

🔗 Source: EU-Startups

🧠 Food for thought

1️⃣ Europe’s renewable transition creates both opportunity and price volatility

The European energy market is experiencing significant transitions that Co-Power is strategically addressing.

According to EU data, April 2024 saw a record 54% of electricity generated from renewable sources, with solar generation increasing by 19% (adding 38 TWh to the grid) while fossil fuel generation dropped by 10% 1.

This shift has already begun impacting prices, with wholesale electricity prices averaging 74 €/MWh in 2024, marking a 22% year-on-year decrease, while retail prices for households have declined by 7% to 242 €/MWh 1.

However, the intermittent nature of renewable energy creates challenges that storage solutions like Co-Power’s are designed to solve. Seasonal demand fluctuations have driven gas consumption up 8% year-on-year to 103 bcm in Q4 2024, showing how volatile energy requirements remain 1.

The startup’s focus on industrial customers particularly targets the sector most vulnerable to these price fluctuations, as businesses cannot quickly adjust their production schedules to match renewable energy availability.

2️⃣ Energy storage startups gaining momentum amid broader greentech investment surge

Co-Power’s €6.4 million funding round reflects a broader pattern of increasing investment in energy innovation across Europe.

The European Institute of Innovation & Technology (EIT) reports that startups in their portfolio focused on sustainability have reached a combined valuation exceeding €71 billion, demonstrating significant investor confidence in the green transition 2.