Fuse Energy Raises $78M to Build a Full-Stack Renewable Energy Business
September 17, 2024
Fuse Energy, a London-based energy company, has raised $78 million in a Series A funding round led by Balderton Capital and Lakestar. The capital will be used to build out Fuse's full-stack renewable energy business, which aims to combine cheaper electricity tariffs with a decentralised energy network that allows customers to generate, store, and trade renewable energy at a local level. The company is taking a vertically integrated approach to the energy sector, encompassing supply, grid infrastructure, and consumer products.
Fuse Energy was founded in 2022 by Alan Chang and Charles O, who identified an opportunity to build a fundamentally different kind of energy company in the wake of the UK energy crisis. Rather than competing purely on price as a retail energy supplier, the founders set out to build a full technology stack — from generation and network management through to consumer billing and smart home integration — that would allow Fuse to offer both superior economics and a stronger environmental proposition than incumbent energy providers.
The company's model is built around decentralised energy networks, in which local energy generation from solar panels, batteries, and other distributed sources is coordinated and traded within communities, reducing reliance on the national grid and lowering costs. Fuse connects consumers and prosumers — those who both use and generate energy — within these local networks, using software to optimise when energy flows in and out of homes, batteries, and the grid. The result is a system designed to make renewable electricity not only greener but genuinely cheaper for participants.
The broader context for the raise is compelling. The UK energy market experienced unprecedented volatility between 2021 and 2023, with wholesale gas prices driving household bills to record highs and exposing the fragility of a supply model overwhelmingly dependent on fossil fuels. The government's net zero commitments require a fundamental restructuring of the energy system toward distributed renewables, and companies that can build the digital and physical infrastructure to manage that transition are attracting significant investor attention.
The investment from Balderton and Lakestar gives Fuse access to deep operational expertise in scaling European technology businesses, as well as networks in the energy and infrastructure sectors. The funding will support team growth, technology development, regulatory engagement, and the commercial rollout of Fuse's network across the UK.
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