Dusseldorf The energy crisis is causing great concern for German consumers and companies with a view to the coming winter. The energy crisis has pushed up gas and electricity prices and highlighted just how dangerous dependence on fossil fuels can be. Electricity generated in Germany from solar and wind energy could solve the problem. The start-up Elvah wants to work on the infrastructure for the ambitious energy transition project.
Elvah has so far offered charging apps for electric cars. Now the start-up wants to set up Germany’s largest decentralized energy storage system. The company collected a high single-digit million contribution for this, as the Handelsblatt learned. “We want to bring e-mobility together with the energy industry,” says Elvah CEO and co-founder Gowrynath Sivaganeshamoorthy. A data and software platform should connect charging station operators, energy suppliers and e-car owners and control both charging and discharging.
With its goal, Elvah is tackling a core problem of the energy transition. Power generation from sun and wind is subject to large fluctuations, it depends on the weather, time of day and season. For a permanent supply of green electricity, you need to be able to plan. This can be achieved, among other things, by energy storage. There, green electricity surplus can be stored for days with less energy.
The potential for alternative energy solutions is there. At the beginning of July, the federal government decided to massively expand green energy. By 2030, green electricity should make up 80 percent of the energy mix. Sustainable energy supply is also becoming increasingly important for companies. By 2035, the market for energy solutions is expected to quadruple. This is the result of a study by the strategy consultancy “PwC Strategy&”. According to the forecast, the market value for energy solutions from company to company (B2B) will increase from the current 25 billion to 100 billion euros.
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The young company has already proven that Elvah can solve problems. When sales collapsed at the then IT service provider in 2020 due to the corona pandemic, the founders Sivaganeshamoorthy, Sören Ziems and Wilfried Röper looked for a new focus and decided on charging stations.
More than 200,000 charging points in 40 countries
E-car owners pay different prices at charging stations depending on the provider. With Elvah, customers choose their electricity requirements and pay a fixed monthly price. You can choose from three different tariff sizes, from ten kilowatt hours (kWh) to 180 kWh.
CEO Sivaganeshamoorthy does not want to reveal how successful Elvah is with this and keeps his numbers covered – there is steady and healthy growth. For the current year, however, Elvah has already exceeded its planned market share many times over.
The start-up can now offer access to more than 200,000 charging points in 40 European countries – and is surprised by its own success. “We didn’t think we would grow so quickly,” says Sivaganeshamoorthy. The start-up has recently been offering corporate customers its own tariffs and management software for managing electric company cars.
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With regard to his company, the CEO also speaks of a personal drive: “I want to solve the problem of fossil fuels for my children.” The energy crisis is having an impact, but is not slowing down growth. Since February, Elvah has abandoned the original idea of tailoring monthly flat rates to car models. “We could not maintain our business model because of the rising electricity prices,” Sivaganeshamoorthy explains the step. The new tariff model based on electricity volume will be supported by the majority of customers.
Elvah values digital solutions and artificial intelligence (AI). The company does not use charging cards with RFID technology, as is common with competitors: the selection of the charging station and payment work entirely via the app. An AI suggests the most suitable charging point for the customer, selected according to performance: “We’re like Yelp for restaurants, only we do objective real-time ratings,” says the Elvah CEO. It’s about making quality transparent.
The AI also has a positive benefit for the charging station operators: They find out if there is a fault and can react more quickly. In addition, the recommendations ensure higher utilization of the individual charging points.
AI should make the largest decentralized energy storage possible
Elvah also relies on AI for the “decentralized power bank” project, as Sivaganeshamoorthy calls it. The start-up is building a data and software platform that will be used to regulate charging and discharging. An AI should also be able to predict when and how much energy is needed. The Elvah CEO also sees a new energy market emerging as a result: “Every charging and discharging process will become a trade in energy,” says Sivaganeshamoorthy. The batteries in electric cars would also become mobile power storage devices.
Elvah got support for this. “We’re good at handling data and building customer-centric apps, but we still have more to learn when it comes to energy,” says Sivaganeshamoorthy. That is why the start-up is cooperating with Maingau Energie on the new project. The nationwide active energy supplier also participated in the latest round of financing, but does not provide any information about the share. “Intelligent solutions are needed, and Elvah has the necessary IT expertise,” says Richard Schmitz, Managing Director of Maingau Energie, explaining the commitment. He is convinced that the mobility and energy markets will grow together – and wants to be part of it.
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From the point of view of the energy suppliers, an even utilization of the power grid is important: “We have to reduce peak loads,” says Schmitz. When all e-car owners plug their vehicle into the socket and cook dinner after work, electricity consumption increases rapidly. Elvah’s approach, which other providers, car manufacturers and power generators are also taking: to intelligently control when the car can start charging.
Private cars are ideal for storing energy because they are only driven for an average of one hour a day, according to data from the Federal Environment Agency. In the remaining 23 hours, the battery of an electric car can be used to store energy. Car manufacturers like VW have already recognized this and are working on pilot tests. “It’s not about size, it’s about speed,” says Schmitz to the competitors.
At the end of the year, Elvah and Maingau Energie will start the first pilot projects. First, loading and unloading at public charging stations will be tested. Later, charging points from employers and home charging stations will also be added. If everything works out, the first e-car power plants will start up in the middle of next year.
It is important to Sivaganeshamoorthy that the services related to the decentralized power bank are also as simple as possible for the customer. E-car owners could be lured with a price advantage to make their car available for storage. “The price also differs depending on how often the car is made available for the electricity grid and when the electricity is purchased,” says Sivaganeshamoorthy. Saving by saving would then be the motto for e-car drivers.
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