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Czech energy company Nano Energies announced today that it has signed an agreement to sell its subsidiary Nano Energies Trade to rival firm Second Foundation. The divestment of the electricity spot trading division will enable Nano Energies Group to raise funds for further investment and development related to energy sector decentralization. The goal is to leverage energy flexibility and smart management of renewable and other energy resources.
“Nano Energies Trade joining forces with Second Foundation means a perfect combination of two top teams in the game – the first has many years of expertise in variance prediction and fundamental speculative electricity trading, while the second is focused on top-class software and automated models, similar to those we know from the financial world,” says Nano Energies founder Petr Rokůsek. Both sides agreed not to disclose the financial details of the deal. The transaction is still subject to approval by the Czech antitrust authority.
Nano Energies will use the funds raised from the transaction to further develop technologies enabling flexible electricity consumption management and smart resource management in the CEE markets, which will ultimately lead to greater energy self-sufficiency in the region. “For Nano Energies, this step is an opportunity to focus on the development of modern digital energy and support its decentralisation and decarbonisation in Central Europe and elsewhere, which is extremely topical today,” says Rokůsek. Europe has a great ambition to build renewable energy. Nano Energies thus expects massive market growth in renewables in the coming years, a trend that will only intensify with the current geopolitical situation and Russia’s aggression toward Ukraine. For strategic reasons, the instability of renewable sources will not be easily covered by gas-fired power plants as originally intended. Therefore, so-called flexibility aggregators will also play a crucial role in the transition to clean and secure energy, helping to balance the energy grid system. Nano Energies has been operating a flexibility aggregator under the Digital Energy Services brand since 2017, with its business growing substantially in the last two years. Through this division, Nano Energies will continue to be active in spot market trading to further smartly optimise its customers’ energy portfolios.
“As we expect the role of aggregators on energy markets to grow as never before, we are looking for additional investment partners who, like us, see the development of flexibility as an opportunity they don’t want to miss,” says Nano Energies CEO Stanislav Chvála. “Over the years, we have built a world-class team of dozens of experts, developers and mathematicians who have laid the foundation for a software infrastructure that is the focal point of our mission of balancing the power systems in Central and Eastern Europe, a market worth tens of billions of crowns,” he added.
Nano Energies has been on the market since 2008 when the group was founded by Rokůsek, who continues to own a 37.5% stake. Other shareholders are Tomáš Janeček, cofounder of RSJ and owner of the Duhovka school network, and Petr Zahradník, a mathematician and Qminers cofounder.
Nano Energies is selling its trading division at a point where its margins have reached the higher millions of euros, the highest level in the company’s history. The two merging trading teams competed minimally on the spot markets. The roughly 20 traders, analysts and programmers from Nano Energies Trade have been active on eight energy spot markets in Europe, while Second Foundation trades on seven other markets.
In 2021, the unconsolidated revenue of the entire Nano Energies group rose to CZK 2.9 billion. The group’s EBITDA reached CZK 3.7 million, a level achieved alongside the intensive investment of tens of millions of crowns in entering new markets and growing the team.