Electronx is building a stock market for electricity trading

Renewable electricity is cheap and clean, but also less predictable than launching a gas turbine. It turns out that this is both a problem and an opportunity.

Most solutions to the interruption problem include the panel panel and wind turbines with batteries that store the power for use when the sun is setting or the wind dies down. Batteries act as a sort of hedging against these natural interruptions.

But expensive physical assets are not the only way to hedge the risk. The markets are different. One start, Electronxis in the process of building a stock exchange where buyers and sellers can trade electricity. The goal, the company said, is to help both sides manage the risk and instability of hedging, with some of the financial uncertainty from renewable energyS

To achieve this, Electronx raised $ 10 million in a subsequent round led by Systemiq Capital with the participation of Equinor Ventures, Shell Ventures and innovation endeavors, the company told TechCrunch. The new investment follows seeds of $ 15 million, which started, raised in June 2024.

For the most part, the electricity market in the United States is heavily regulated, built on assumptions that were formed when electricity is largely generated by coal-plated power plants. They expired day by day, forming a stable base on which the more expensive power plants responded to the fluctuations in demand.

But as the sun and the wind entered the market, they have turned some of these assumptions to their heads. Unlike large fossil fuel plants, renewable energy can be switched on and off quickly. The batteries add the price, but offer even more speed and flexibility in responding to changes in demand.

These qualities have opened the door to new ways of commercial energy, says Electronx.

The proposed company will allow the electricity suppliers and consumers to buy and sell capacity in 1 mega blocks on internal time or time for the current day and the next day. Electronx is still waiting for approval by the Futures Commission of Futures of the Goods, but if this happens, the company’s more detailed blocks may reduce “the implied multimillion -dollar requirement for trading” present in today’s electricity markets, the company said.

The goal is to allow smaller companies To play a bigger role in the electricity markets, similar to how retailers can participate in the stock market. “Through the use of more precise financial products, renewable assets must see better return profiles and faster payout periods,” the company said.