Logical Buildings – a sustainability, smart building, and virtual power plant (VPP) software and solutions provider – closed a $110 million VPP project facility with Keyframe Capital.
The project facility will be used to pursue VPP projects within New York City- and New Jersey-based multifamily residential buildings, providing thousands of operators with reputational and financial incentives to invest in initiatives that will drive energy savings, lower greenhouse gas emissions, and establish new channels for grid services revenue.
“Imagine providing residents with smart thermostats that reduce building energy usage, lower resident utility bills, and generate cash rewards while simultaneously enhancing comfort and convenience. With our new project facility, this is now a reality,” said Jeff Hendler, CEO at Logical Buildings. “The multifamily market remains largely untapped when it comes to impactful decarbonization and energy transition projects. Our project facility provides building owners with access to new opportunities to create thousands of grid-connected smart apartments at once, instead of the traditional ‘one home at a time’ approach to residential energy savings.”
Buildings are the largest contributor of greenhouse gas emissions, with energy-related emissions from both residential and commercial properties representing 34% of total emissions in the U.S. With the Climate Mobilization Act and its many equivalents going into effect on January 1, 2024, every kilowatt-hour and therm used by a multifamily building and its residents will count against new carbon emissions caps. In New York City alone, 50,000 buildings are subject to the new legislation, most of which are multifamily.
According to Mercom’s Annual And Q4 2022 Funding and M&A Report for Storage, Grid & Efficiency. Smart grid companies raised $3.3 billion in VC funding in 46 deals in 2022, a 175% increase compared to $1.2 billion in 35 deals in 2021. Recently, Indra, an electric vehicle charging and energy technology company, has announced that it secured over £20 million (~$21 million) in Series B Funding. The lead investor was Gulf Oil International, which significantly increased its equity stake in Indra.