Seyed Madaeni, Co-founder and CEO of Verse, discusses his journey in clean energy procurement, offering insights from his background in energy systems engineering. He sheds light on the rising demand for clean energy in corporate America, especially among data-hungry tech giants. Seyed emphasizes the complexities of virtual Power Purchase Agreements and how data-driven decision-making can streamline energy management. The necessity for companies to adopt sustainable practices as a core capability is a central theme, showcasing Verse’s innovative solutions.
Verse's platform simplifies clean energy procurement for corporations, helping them stabilize costs while achieving decarbonization amid fluctuating market prices.
Data consolidation and analytics are essential for organizations to navigate energy procurement strategies and prepare for regulatory shifts regarding emissions compliance.
Deep dives
The Role of Verse in Clean Energy Management
Verse is a software startup designed to assist organizations in understanding, planning, and managing their clean energy needs. The platform simplifies the complex procurement process, enabling companies to stabilize electricity costs while achieving decarbonization goals. By leveraging their backgrounds in energy software, co-founders Syed Madaini and Matt Penfold focus on streamlining operations to make it easier for businesses to navigate clean energy options. The solution addresses existing gaps in tools and processes, as many organizations lack adequate resources for effective energy management.
The Evolving Buyer Side of the Energy Market
The landscape of energy procurement has shifted significantly in recent years, driven by the influx of renewable energy sources and changing corporate priorities regarding carbon footprints. Corporations are now more focused on stabilizing their electricity costs in light of fluctuating market prices and the need to comply with emissions standards. Many large corporations have already contracted significant amounts of clean energy, reflecting a trend towards deeper engagement in energy management. Verse targets these evolving needs by providing insights and analytics that enable corporations to make informed procurement decisions.
The Importance of Data in Energy Procurement
Data plays a critical role in helping organizations manage their energy procurement strategies effectively. Verse's platform includes a data hub that consolidates past and future electricity market prices and emissions forecasts, allowing users to make well-informed decisions. This crucial information is derived from both partnerships with vendors and in-house data models, offering a comprehensive view of market dynamics. With historical and predictive data at their fingertips, customers can better understand their exposure to price volatility and emissions, which is essential for long-term planning.
Navigating Carbon Matching and Regulatory Changes
As businesses seek to reduce their carbon emissions, concepts like carbon matching and 24/7 clean energy procurement have emerged as focal points for organizations. Carbon matching aims to ensure that companies are utilizing clean energy sources consistently throughout their operations, promoting accountability. In contrast, current regulations allow for broader annual matching, which could lead to discrepancies in compliance if rules become more stringent. Companies that invest in understanding these nuances are not only addressing their immediate energy needs but also preparing for potential regulatory shifts in the future.
Seyed Madaeni is the co-founder and CEO of Verse. Verse develops software that helps organizations understand, plan, and manage clean energy. Their platform simplifies the complex clean energy procurement process, enabling companies to meet their emissions goals in the most economical way possible.
MCJ is proud to be a repeat investor in Verse through our venture capital funds, including participation in their recent Series A round alongside GV and Coatue. To us, Verse embodies the inevitable shift where large companies must integrate clean energy management as a core business capability.
Hyperscalers have led this trend, driven by their insatiable need for electricity to power data centers—a demand that’s only growing with AI. We believe this focus on clean energy will expand across major corporations, much like the widespread adoption of IT and cloud technologies over the past two decades. But enough from us—let’s hear directly from Seyed about what he’s building with Verse.
In this episode, we cover:
[1:43] Overview of Verse’s mission and focus
[2:05] How Seyed founded Verse
[4:54] Lessons from Seyed’s time at Fluence
[6:02] Insights into the buyer side of the market
[10:03] Rising demand on the U.S. energy grid
[13:02] Breakdown of Verse’s customer base
[17:44] Challenges corporate buyers face with energy and emissions
[19:14] Overview of virtual PPAs and additionality
[25:14] How Verse helps buyers make energy decisions
[27:28] Importance of data in pricing and forecasting
[30:40] 24/7 carbon-free energy vs. carbon matching
[35:00] The role of batteries in increasing emissions
[38:56] How Verse is expanding its offerings
[41:15] Understanding Verse’s approach
[44:00] Verse’s funding history and goals
Episode recorded on Oct 17, 2024 (Published on Jan 2, 2025)
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