Amperon, a Texas-based technology company that builds AI-powered electricity analytics for energy market participants, raised $7 million in Series A funding, bringing the company’s total funding to date to $10 million.

HSBC Asset Management led the funding round through its new Climate Tech Venture Capital Fund. Other participants in the round included Riverstone Holdings, Muus Asset Management, Climate Capital, and Kiran Bhatraju, CEO of Arcadia.

Power markets have become more complex and volatile due to the proliferation of renewable energy, smart meters, battery storage, electric vehicles, and extreme weather conditions. Meanwhile, the tools to predict demand, an essential part of balancing the grid, have lagged.

“The tools companies currently using are completely ineffective to tackle the energy transition,” said Sean Kelly, CEO and co-founder of Amperon. “We need a grid that runs on AI to keep up with these exponential changes. This partnership with HSBC means we can expand our presence to reach every electricity market participant,” he added.

“There has been major underinvestment in utilities who still rely on legacy tools for their demand forecasting needs. However, power grids have taken on more intermittent renewables, flexible demand, and dealing with increasingly volatile weather. This poses a risk management challenge. Amperon’s laser-precise forecasts are critical building blocks that address the changes taking place on the grid and the need for net-zero emissions,” said Michael D’Aurizio, investment director at HSBC Asset Management.

Already active throughout the U.S., Canada, and Australia, the company plans to use the fresh funds to bring its AI-enabled electricity demand analytics to new markets in Europe and Asia.

According to Mercom’s Q1 2022 Funding and M&A Report for Storage, Grid & Efficiency, VC funding for Smart Grid companies increased 9% in Q1 2022 with $312 million in 12 deals compared to $287 million in 10 deals in Q1 2021.