Disrupting the Utilities Sector: Tem’s Revolutionary Marketplace

In a bold move to transform the age-old utilities industry, London-based startup Tem is leveraging technology to connect businesses directly with renewable energy sources. By creating a marketplace and platform, Tem aims to disrupt the traditional utility model and make it easier for companies to meet their climate targets.

A New Era in Utilities

The concept of neo-banks has been successfully disrupting the financial sector for over a decade, offering an alternative to traditional banking services. Similarly, Tem seeks to revolutionize the utilities industry by providing a platform that enables businesses to bypass the "big energy" companies and their high prices. This approach is not only more cost-effective but also aligns with the growing demand for renewable energy.

Founding Team’s Vision

Tem’s co-founder and CEO, Joe McDonald, emphasizes the need for change in the utilities sector: "We like to think of ourselves as the U.K.’s first fully direct-to-generator marketplace." The founding team is comprised of experts from various fields, including energy trading and renewable energy. Their vision is to create a platform that not only provides businesses with access to affordable and clean energy but also helps reduce carbon emissions.

How Tem Works

The Tem platform connects businesses directly with generators, eliminating the need for intermediaries and reducing transaction costs. This approach allows companies to purchase energy at a lower price point, making it more economical for them to operate sustainably. The platform’s direct-to-generator matching engine balances supply and demand in real-time, ensuring that businesses have access to the energy they need when they need it.

Competing with Traditional Utilities

Tem faces competition from various younger companies attempting to tackle the same problem. In Germany, Trawa has recently closed a €10 million funding round, while in the U.K., Octopus Energy, backed by Al Gore, has acquired failed renewable energy rival Bulb. Tem differentiates itself from its competitors by directly sourcing energy from generators, rather than relying on traditional utility markets.

Benefits of Tem’s Approach

The benefits of Tem’s approach are numerous:

  • Reduced costs: By bypassing intermediaries and reducing transaction fees, businesses can save money on their energy bills.
  • Increased transparency: The platform provides real-time information about the energy supply chain, enabling businesses to make informed decisions about their energy usage.
  • Enhanced sustainability: By promoting direct-to-generator sales, Tem encourages the growth of renewable energy sources and reduces carbon emissions.

Funding and Expansion Plans

Tem has secured £13 million in funding since its inception, with a recent Series A round led by Atomico, a prominent venture capital firm. The fresh cash will enable the company to expand its operations internationally, starting with European markets that have aggressive renewable targets. McDonald emphasizes Tem’s focus on Europe first, particularly in Germany, the Nordics, and later the U.S.

Conclusion

Tem’s revolutionary marketplace is poised to disrupt the traditional utilities sector by providing businesses with a cost-effective and sustainable solution for their energy needs. With its unique approach and commitment to reducing carbon emissions, Tem is well-positioned to become a leader in the industry. As the world continues to shift towards renewable energy sources, Tem’s innovative platform is likely to play a significant role in shaping the future of utilities.