Schneider Electric Energizes Its Renewable Energy Procurement Offerings With Zeigo Acquisition

Schneider Electric Energizes Its Renewable Energy Procurement Offerings With Zeigo Acquisition

On January 13, 2022, Schneider Electric announced that it had acquired Zeigo to expand its software and advisory capabilities for renewable energy procurement. Founded in 2018 and with 20 employees, Zeigo offers a platform to help businesses source energy supply contracts directly from solar and wind power producers. It aims to streamline the power purchase agreement (PPA) process by providing market intelligence, data and financial information for each project. The acquisition will complement Schneider Electric’s portfolio of decarbonization services, such as its NEO Network, which matches energy consumers to providers of renewable energy services.

Demand for renewable energy PPAs has grown strongly over the past ten years, as firms look to decarbonize their power supplies and reduce exposure to rising energy prices. Data from ING shows that the overall size of the PPA market grew 8% to 26 GW in 2021 compared to 24 GW in 2020. This reflects that year a slew of firms signed new PPAs to meet decarbonization goals. For example, in 2021, chemicals firm BASF signed a 25-year PPA with ENGIE to procure renewable energy from sites across Spain as part of its GHG reduction programme.

Despite the growth of the PPA market, renewable energy procurement remains time-consuming and complicated for corporate buyers. Transactions are still conducted on a case-by-case basis and require an expert risk evaluation which drives high transaction costs. Schneider Electric plans to use Zeigo’s AI-powered platform as part of its existing advisory service to drive new efficiencies that reduce procurement costs for corporate buyers. For example, Zeigo’s software platform helps speed up the development of business case reports and energy price forecasts, reducing the time spent by expert consultants.

With firms under pressure to deliver on ambitious carbon reduction targets, there is a significant runway for further growth across the PPA market. Schneider Electric’s acquisition is a smart move that will provide it with an angle of differentiation and enable it to drive new efficiencies in a complex sector. To learn more about the latest innovation across corporate energy management strategies, read our report: New Strategies For Corporate Energy Management.