Schneider Electric enhances digital capabilities with Zeigo acquisition

Energy services company Schneider Electric has acquired UK-based machine learning startup Zeigo to expand its digital capabilities within the renewable energy segment.

Commenting on the acquisition, Juan Pablo, CEO and founder of Zeigo said: “Zeigo is delighted to join forces with Schneider Electric to continue to accelerate the digital clean energy revolution.

“Together, we will bring innovative energy solutions to even more companies, to drive impact as they embark on their decarbonisation journey.”

Schneider Electric says the acquisition of Zeigo's machine learning renewable energy optimisation tool and the startup's 20-person team will help in the achievement of the company's goals, which include becoming the world's largest corporate renewable energy advisor.

As the decarbonisation of the global power sector gains momentum and the use of corporate power purchase agreements (PPAs) is anticipated to increase, Schneider Electric says it will leverage Zeigo's experience and technology to expand and innovate its offerings in energy, sustainability, and environmental commodity consulting.

Renewable energy procurement is time-consuming and complicated, requiring significant expert evaluation of projects and risks. Steve Wilhite, SVP for Schneider Electric’s Sustainable Business Division added: "We know that speed and complexity are two of the barriers that keep some corporations out of the PPA market."

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However, Schneider Electric says it will combine Zeigo's AI algorithm with its advisory services to help corporates address procurement challenges.

On a global scale, corporates have to date purchased 77GW of renewables capacity via PPAs, according to BNEF, highlighting the important role PPAs are playing in the decarbonisation of the global economy. However, with pressure to reduce carbon emissions and mitigate climate change rising, the use of PPAs is expected to expand as well over the coming years.

More than 2,000 companies have already joined the Science-based Targets Initiative with the intention of mapping their decarbonisation aspirations to a 1.5 degree Celsius global warming threshold. A further 300+ corporations have joined the Climate Group’s RE100, committing to achieve 100% renewable energy in their operations. Taken in total, these commitments have led BNEF to predict a shortfall in corporate renewable energy of 269 terawatt-hours by 2030.

Today Schneider Electric has supported the execution of 13,000MW of corporate PPAs across the US, Europe, Australia, Brazil and in emerging economies.