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Eaton Joins Reactive Technologies’ $15M Fundraising Effort

Eaton Joins Reactive Technologies’ $15M Fundraising Effort

LONDON Reactive Technologies, the UK and Finland-based grid technology company, is delighted to announce a new group of investors as part of a $15M fundraise – the business’ largest ever. The funding round was led by the UK & Ireland’s most active investor, BGF, alongside Breakthrough Energy Ventures, and Eaton (NYSE:ETN), a global intelligent power management company.

Reactive will use the proceeds to expand its international activities and export its technology to countries around the world that are experiencing rapid renewable energy growth and already beginning to manage the challenges of decreased grid stability caused by a loss of inertia. Reactive’s GridMetrix technology is like ‘sonar’ for the grid, uniquely able to take direct measurements of grid inertia and providing system operators with accurate real-time visibility overpower network conditions. This mission-critical data enables grids to safely and cost-effectively increase their renewable energy capacity as they accelerate the decarbonization of their energy systems.

The investment entry of one of the world’s most prestigious clean energy funds is a major validation of Reactive’s technological solutions. Breakthrough Energy Ventures invests only in technologies with the potential to reduce greenhouse gases by at least 1% of global emissions (0.5 gigatons) per year. Meanwhile, Eaton will make a strategic investment, and together with Reactive, will explore opportunities for collaboration on utility market support and future service offerings.

Reactive expects to announce further strategic investments as part of a 2nd close later in the year.

Marc Borrett, Reactive Technologies CEO, commented:

“This fundraise is a fantastic endorsement of our business, our team, and the technological solutions we provide. Our new financial and strategic partners will help drive a step-change in the delivery of our services to system operators globally, accelerating our ability to enable power grids around the world to rapidly decarbonize and meet their net-zero objectives. With COP26 on the horizon as we approach tipping point in the energy transition, we are proud to be an example of how British and Finnish innovation can help overcome the hurdles to decarbonization and support the global fight against climate change.” 

Aravind Yarlagadda, Eaton executive vice president and chief digital officer, commented:

“As the world moves towards a net-zero carbon energy system, we see a future where renewables and distributed energy resources steadily replace existing forms of energy as electricity becomes an even more important part of how we power our daily lives. We expect this massive shift to place increasing pressure on grids everywhere and require insights from innovative technology companies like Reactive and proven solutions from their partner ecosystems. Our strategic investment accelerates our ability to provide digital solutions and support our customers in the global energy transition.” 

The investment comes as Reactive prepares to deploy its first commercial GridMetrix service contract with UK grid operator National Grid. With annual investment in grid infrastructure set to treble from $260 to $820 billion by 2030[1] and over 70% of the world’s emissions under jurisdictions that have committed to a 2050 net-zero target, Reactive is uniquely positioned to play a leading role in the decarbonization of the global energy system.

Volker Beckers, Chairman, Reactive Technologies, commented:

“This is a fantastic moment for Reactive and the result of years of work by our team to develop a leading clean technology business at the heart of the energy transition. The fact we have been able to attract such high caliber financial and strategic partners demonstrates a growing awareness around the world of the urgent need for investment in grid stability technologies. This fundraising will enable us to help release the hand-brake on the energy transition and enable power grids to decarbonize safely and economically.” 

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