‘ESCO on steroids’: Negawatts.io’s data-driven approach to energy savings
Negawatts guarantees 40-70% energy reductions compared to the typical 10-30% that traditional ESCOs deliver, says CEO Nigel Grier
- Originally Published In E27
- Sainul Abudheen K
- 12 Aug, 2024
Negawatts.io, an Australian startup that offers tech solutions to optimise energy consumption for companies, is establishing a new office in Singapore to expand into the Southeast Asia, Australia, and New Zealand (ASEANANZ) markets.
The company recently graduated from the EnergyLab Climate Tech Charge programme and plans to secure contracts with enterprises across Australia and the region.
In this interview with e27, Negawatts.io’s co-founder and CEO, Nigel Grier, discusses the rationale behind the expansion.
Please tell me about Negawatts.io.
Negawatts.io was founded by Kor Choon Meng, Pat Jackson, and myself. We were driven by a shared vision to address the urgent need for energy efficiency and sustainability in today’s world.
“Negawatt” refers to a unit of energy you don’t use—energy saved through efficiency measures. Our mission is to help asset owners exceed their NetZero goals while contributing to cooling the planet and protecting our biosphere.
Our approach is an “Energy service company (ESCO) on Steroids,” as we dig much deeper into energy efficiency. We guarantee energy reductions between 40 per cent and 70 per cent, compared to the typical 10-30 per cent that traditional ESCOs deliver.
How does Negawatts.io differentiate itself from other energy sustainability startups and solutions in the market?
Negawatts.io positions itself as the intermediary between building owners and ESCOs, setting the standards, managing the financials, and directing the entire process. We still allow the ESCOs to do the heavy lifting, but by getting in the middle, we maintain high leverage over the project’s success.
We set ourselves apart by providing a holistic and integrated approach to energy optimisation. Our platforms are not just standalone solutions—they are designed to work together, creating a comprehensive energy management system that maximises efficiency across the board.
Our “ESCO on Steroids” philosophy, backed by decades of proven success, ensures our clients see significant, measurable energy consumption and operational efficiency improvements. We don’t wait for clients to come to us; instead, we actively seek opportunities, providing a tidy package that makes the process as simple and financially attractive as possible.
Can you provide the details about your three integrated solutions (vChill, mGrid, and vPool)? How do they work together to optimise energy consumption?
vChill is an energy optimisation platform for centralised chiller plants designed to identify inefficiencies and optimise operations. This results in substantial cost savings and reduced environmental impact.
mGrid is a micro-grid control platform for large industrial and commercial facilities, such as hotels and warehouses. It features an intuitive interface for seamless energy resource monitoring, management, and optimisation.
vPool is a platform that facilitates the financing of energy and resource conservation projects. It connects project partners with investors, enabling capital allocation to high-impact conservation projects through a transparent and verifiable process.
They work together to optimise energy consumption and resource management across various sectors.
Can you tell us more about how these three work together to optimise energy consumption and resource management across various sectors?
We believe positioning our solutions to make existing buildings NetZero is far more compelling than simply promising vague “increases in energy efficiency” that most ESCOs offer.
This strategy resonates strongly with property owners looking for substantial, tangible results. Increasing energy savings directly translates into increased returns and enhanced value for property owners.
For instance, a property owner with a US$1 million utility bill could see their costs drop to US$400,000. This 60 per cent reduction in operating costs not only allows owners to raise rents but can also increase the sale price of their buildings by 10X the amount of savings—turning US$600,000 in savings into a $6 million capital value enhancement.
Our other key differentiator is the comprehensive, turn-key service we offer. We aim to provide everything an owner needs to identify and achieve maximum energy and water savings within a practical framework. Our service includes not just the identification and execution of savings opportunities but also the necessary financing to make these improvements a reality.
How does Negawatts.io leverage data-driven insights and predictive analytics to optimise system performance and prevent downtime?
Our platforms leverage data-driven insights and predictive analytics to optimise system performance and prevent downtime. By continuously monitoring energy usage and system operations, we can predict potential issues before they become problems, ensuring that our client’s operations remain smooth and efficient.
Can you share examples or case studies from pilot projects demonstrating the potential cost savings and efficiency gains achieved through your platforms?
We have several pilot projects that showcase the potential of our platforms. For example, a recent deployment of vChill at a major commercial facility resulted in a 54 per cent reduction in energy consumption, a significant decrease in operational costs and nearly 1,000t of CO2e annually.
Similarly, our mGrid platform has helped industrial clients stabilise their energy costs by integrating renewable energy sources and reducing reliance on the grid.
What factors influenced your decision to expand into the Southeast Asia, Australia, and New Zealand markets?
The decision to expand into the Southeast Asia, Australia, and New Zealand markets was driven by the region’s growing focus on sustainability and the significant opportunities to improve energy efficiency. These markets rapidly adopt green technologies, and we see a strong demand for our integrated solutions.
What strategies are you using to engage with Australian and Southeast Asian investors to support your growth financing efforts?
To support our growth, we are actively engaging with investors in Australia and Southeast Asia through a targeted outreach strategy highlighting our solutions’ financial and environmental benefits. We also focus on securing contracts with enterprises across the region by demonstrating the proven cost savings and sustainability gains our platforms deliver.
What are your plans for securing contracts with enterprises across Australia and the broader ASEANANZ region?
Over the next five to ten years, we expect the energy optimisation and sustainability landscape to evolve significantly, with increased adoption of AI-driven solutions and a stronger focus on integrating renewable energy sources.
Negawatts.io is positioned to play a crucial role in this future, providing the tools and insights necessary for businesses to navigate these changes and thrive.
What are your biggest challenges in the competitive landscape, and how are you addressing them?
The biggest challenge is the crowded marketplace, with many players offering energy solutions. However, we address this by maintaining a clear focus on our integrated, data-driven approach, which delivers superior results.
Our commitment to innovation and our “ESCO on Steroids” philosophy ensures that we consistently outperform traditional solutions and drive real, impactful change in the energy landscape. The market is enormous, and demand is growing unchecked, but our substantial and simple differentiator—providing better value to our clients—positions us to succeed and scale effectively.