Energy

General

We have been building our Energy investment portfolio since some years. We have (direct and indirect) investments in:

  • Solar energy, energy storage and electric charging stations
  • Biomass energy production
  • Development of smart heating solutions
  • Smart Energy system solutions involving intelligent software and/or services, combined with hardware components

Vision

Transitioning the carbon intense energy system to a robust sustainable energy system is of crucial importance. At VP Capital, we will be building our investment portfolio towards solutions for the key challenges in this domain.

The following key challenges are defined by Sinzer:

Ambition

In the energy sector, VP Capital's ambition is to invest in these sustainable solutions:

  • Companies that develop, realize or support ways to generate renewable energy or provide a clean alternative to the use of fossil fuels in any application of it
  • Solutions to facilitate a smooth transitioning into a renewable energy driven world
  • Innovations that account for energy use reduction, e.g. logistical efficiency reducing transport, reducing loss of warmth, more energy efficient devices etc.
  • Reducing footprint of renewable energy solutions, such as footprint of rare metal use of solar panels, wind turbines and lithium-ion batteries

We also have the ambition to make donations that contribute to the following solutions:

  • NGOs focussing on (renewable) energy access for disconnected communities, cooperating with local governments to enhance grid networks or providing more locally adapted solutions (e.g. solar panels).
  • Organisations providing vital buildings and structures with more reliable energy access, such as medical facilities, schools and water cleansing facilities
  • Initiatives that support the transition to renewable energies by phasing out the use of fossil fuel powered devices / vehicles

Domain report Energy

For each of our investment domains, a more detailed report on key challenges, investable solutions and investment criteria has been made.
View the report of our Energy investment domain here.

Sustainable progress within the energy domain

With VP Capital, we want to contribute to sustainable progress. We screen our investment portfolio in terms of ESG and Impact. Read more about this in our Progress Report via the button below.

Progress Report

Read more about the different challenges below:

Access to decarbonized,  renewable energy for everyone
The overall biggest challenge remains to decarbonize and reduce CO2 emissions by phasing out the use of fossil fuels as energy source. Additionally, there are concerns that the developments should benefit everyone equally. Developing countries with little access to electricity should be taken into account, as well as low-income communities.

Manage intermittency of renewable energy
A key challenge remains the relative unreliability of renewable energy sources as a result of their dependence on natural factors. For electricity to be delivered, the electric grid requires that supply and demand are in balance, the intermittency of renewable sources should thus be covered. This is possible at the supply side, via reliable energy sources or at the demand side through energy carriers or solutions that manage demand.

Develop (digital) energy infrastructure
The use of electricity will increase substantially as a result of the energy transition, due to more electric sources and more electric devices. To manage this, the electric grid and distribution networks should adapt. They require upgrades and incorporation of digital developments that can; increase net capacity and manage demand side solutions to cover for variability of electricity supply. Additionally, hydrogen infrastructure requires developments to reach its full potential.

Save and reduce energy use
The overall challenge of fossil fuel consumption reduction can also be achieved by improving energy efficiency. This can be done by improving end-use efficiency and conversion efficiency of fossil fuel utilizations but can also be the result of measures to diminish the amount of energy lost.

 

Manage downsides of renewable energy production
Despite being a better alternative than traditional fossil fuel energy generation, most renewable energy sources have their downsides that remain challenges to the goal of fully sustainable energy provision. For example, they require rare elements and metals or vast areas of land. It is essential that renewable energy should not keep causing environmental harm through the destruction of ecosystems and depletion of natural resources.
Additionally, the current energy mix still contains significant fossil fuels, which releases vast amounts of carbon into the air.

Portfolio companies

Some examples of companies in our current portfolio within the domain of Energy transition:

Interested in a possible collaboration?

View our specific investment criteria and contact us if your project meets these requirements.

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