Written by Joe McDonald
Jan 29, 2023
There’s a lot about the energy market that doesn't sit right with us. Why are so many intermediaries involved in energy transactions?
The tem. team at work - exploring the amazing Battersea Power Station
However, the future of renewable energy is on the verge of radical changes and it’s looking bright! The silver lining of the huge pain businesses have gone through (and even the huge benefits that generation assets received) during the 2022 energy crisis is that topic of energy has become mainstream for businesses all over the world.
This awareness and willingness to no longer turn a blind eye to how energy markets are currently working simply due to the “complexity” or “effort”, means businesses are starting to ask the question “but why does it have to be this way?” Here at tem. we are completely reimagining the future of energy, we imagine a future of transparency, access, and insight, where renewable energy is presented in a revolutionary new way. But we are yet to see how technology can disrupt and evolve this industry. Do you remember how bad banking was 10 years ago and how the fintech from the likes of Neobanks (Monzo, Starling and Revolut), payments and transaction companies (Transferwise, Stipe) turned it on its head? Well, that’s what we’re about to see in energy and we are proud to be part of this new future that change.
We founded tem. to rethink the way we buy and sell energy. There is a lot of inspiration and lessons that can be learnt from how finTech has improved efficiency, costs, transparency, and access and generally shifted the ownership and power away from the incumbents to the end users. Our mission is that by re-inventing the energy transaction process we can achieve the same type of benefits to all businesses and renewable generators - unlocking pricing and other opportunities that are usually only available to some of the largest companies on earth currently.
Co-founders Jason, Joe and Ross MacKay - nice shirt Ross!
Renewable energy provides an incredibly innovative space that provides the conditions that can unlock full transparency, simplicity and pricing within energy markets. Unlike fossil fuel commodities that can be stored, owned and dictated centrally, renewable energy offers a decentralised source of energy driven by nature itself - no one can own the wind! However, currently, it also offers many traditional incumbents to offer greenwashed products that do not meaningfully benefit renewable generators or the planet and require no change or real innovation in the way a traditional utility operates. This is where modern technology will, as it always does, find a way. Building a bottom up customer-first technology-driven version of a utility (a virtual or neo utility if you wish) takes the same renewable generation and businesses but via disintermediation, efficiency improvements and enhanced optimisation can now entirely re-invent how things work behind the scenes - in turn delivering huge customer improvements in price, transparency and customer experience via insights, accuracy and simplicity.
No time spent tendering, comparing or effort on contracting your energy. Automated matching, price tracking and contracting directly with renewable generators. New innovative payment options, and truly personalised energy solutions with seamless integration at little to no cost to your business. Transparency and communication with who you have sold your energy to or bought from, a closer relation, and brand benefits (B-CORP, ESG etc.) are now available to every brewery and hairdresser, not just an FTSE 100 company. Less time spent, more trust and better value generally
You don't have to look far to see that energy is a hot topic of conversation, with high prices and unfair tariffs affecting businesses and households across the UK and the world. Renewable energy is also gaining attention as people become aware of its importance to the environment. People are interested in understanding how energy works, but the more they examine their bills, the more complicated it all seems. Energy should be simpler.
The energy industry has been pushed to its limits, just like the banking industry was before the 2008 financial crisis. The crisis revealed major flaws in the banking system, but those problems didn't develop overnight. In the aftermath of the crisis, new and more inclusive fintech solutions emerged, and we think the same is happening in the energy industry now. Now outside pressures have created extreme volatility and, combined with reckless and biased management of risk, are exposing holes in the market. Sound familiar?
Technology, strong values, and a focus on renewable energy can fix this broken industry, and create more democratic access to traceable, truly renewable energy for all. It's about creating collaboration and bringing buyers, sellers, and all sorts of people across the energy space closer together.
It's a future that is better for all of us.