- Three and a half-year program to inspect and digitalize Evergy’s 9,000+ mile transmission system.
- The collaboration will bring a new wave of techniques to Evergy’s existing inspection program by utilizing eSmart Systems’ AI-powered image recognition solution, Grid Vision® that enables engineers to inspect assets with greater depth and accuracy.
eSmart Systems has announced a multi-year partnership with Evergy, a regulated electric utility that serves more than 1.6 million customers in Kansas and Missouri, to inspect and digitalize their entire transmission system. The goal of the partnership is to create a digital inventory of all assets and improve the accuracy and consistency of inspections by utilizing virtual inspections and artificial intelligence. In addition to improving reliability and resiliency, this partnership will create a baseline of data that can support predictive maintenance in the future, as well as reduce the expense of inspections and other asset management related activities.
eSmart Systems will lead the program working with EDM International and GeoDigital. GeoDigital is providing large-scale data acquisition and high-resolution image processing and EDM International will provide inspection subject matter expertise. The program will utilize eSmart Systems’ advanced solution, Grid Vision, which includes best practice Collaborative-AI. The solution is designed to analyze photographic images of assets to identify defects, catalog asset inventory and identify risk issues that need to be addressed.
This partnership is expected to accelerate image analysis capabilities and improve inspection processes while empowering Evergy to make better-informed decisions in their end-to-end inspection process that significantly reduce costs for inspections, maintenance, and repairs.
eSmart Systems is a key player in our grid modernization efforts as we continue to focus on energy reliability and grid resilience through innovation and adoption of new technologies. This is a big step that will accelerate identification and repair of defects and help us take advantage of predictive maintenance in the future
Our partnership with Evergy is an important landmark in maintaining a resilient grid for the future. The combination of knowledge and skills from bringing together experts from Evergy, our Grid Vision team, GeoDigital, and EDM International, will improve the visibility and awareness of critical infrastructure data including asset inventory and condition as well as decrease risks and operating expenses. We are looking forward to continuing the strong growth of this strategic partnership.
About Evergy
Evergy, Inc. (NYSE: EVRG), provides clean, safe and reliable energy to 1.6 million customers in Kansas and Missouri. The 2018 combination of KCP&L and Westar Energy to form Evergy created a leading energy company that provides value to shareholders and a stronger company for customers.
Evergy’s mission is to empower a better future. Today, half the power supplied to homes and businesses by Evergy comes from emission-free sources, creating more reliable energy with less impact to the environment. We will continue to innovate and adopt new technologies that give our customers better ways to manage their energy use.
About eSmart Systems
eSmart Systems is a leading provider of AI-powered solutions for the inspection and maintenance of critical infrastructure. With our software solution, Grid Vision®, we revolutionize how Power Utilities operate and maintain their transmission and distribution networks. eSmart Systems offers a data-driven and condition-based approach to infrastructure inspections that can be managed from one single platform. This platform also employs Collaborative AI, a method for combing the best qualities of Machine Learning and Subject Matter Experts to achieve the best near-term inspection outcome, while also automatically training the AI for long-term success. We support companies worldwide by ensuring reduced costs, safer inspections, and prolonged asset life. For more information, please visit esmartsystems.com.
About EDM International
EDM is an employee-owned alliance of engineers, scientists, technologists, and businesspeople providing innovative services and products to the utility industry since 1982. The company has become a leader in utility engineering, operations, and asset management by merging excellence in technical disciplines with a genuine concern for client needs. EDM is headquartered in Fort Collins, Colorado, and has offices in San Diego, California, and Billings, Montana, and staff in other locations in North America. For more information, please visit edmlink.com
About GeoDigital
GeoDigital offers a distinct and fully compliant “Insight for Utilities” solution that delivers transmission aerial surveys, LiDAR & Imagery acquisition, FAC-003 vegetation analytics, web delivery with 3D right-of-way visualization, and a comprehensive vegetation and line inspection work management software. The WorkStudio Software Suite manages utility work, including engineering design, vegetation management, inspections, audits, and cycle-based maintenance planning. By combining Insight software with GeoDigital’s LiDAR and imagery data acquisition services, utilities can identify work required, cost-effectively allocate work to field personnel, track work as its being completed, and generate reports and analysis. For more information, please visit geodigital.com
We have seen during our work with over 40 global utilities that one key challenge of transitioning to virtual overhead line inspections is the quality and consistency of image capture. There are many factors that impact this process – from camera quality, to angle of image capture to flight patterns when utilizing flight or drones. In real-life conditions, these factors often lead to subpar image capture, and issues such as improper exposure, blur and framing are commonplace. Sometimes operators are even forced to refly the lines to get useful data for virtual inspections, leading to inefficiencies and high costs.
eSmart Systems is partnering with AISPECO in a project to develop edge computing algorithms for the improvement and automation of the image capture process for overhead line inspections. This will help utilities capture images of their assets in a more efficient and reliable manner, with the goal of reducing costs associated with image capture by ensuring the right images are captured the first time. High-quality, consistent images also contribute to a significantly more efficient AI-assisted inspection process.
The objective of Smart Falcon is to develop a solution that is able to identify in real-time when a target structure or part of the structure is in-frame, and automatically trigger a camera shot. The solution will also evaluate in real-time the quality of the image to determine if it meets the standards required, and otherwise another image is taken automatically without the need to circle back.
Having worked with over 40 utilities globally, we have heard from numerous customers that their image capture process is not as efficient as it could be, with the image capture teams sometimes having to refly the course to retake images. Smart Falcon project will help improve the efficiency of image capture, increase image quality and reduce the costs of the overall process
Smart Falcon enables eSmart’s customers to make the transition to virtual overhead line inspection by increasing efficiency of image capture, improving image quality and thereby reducing the costs of image capture.
AISPECO simultaneously will develop a versatile gimbal and steering system for helicopters’ rig and -in later stages – for planes, drones and cars.
This solution represents a major change in the way images are captured in the inspection process. As with all of our innovation projects, customers are at the heart of what we do. This program is open for utilities to join and contribute to the future of image capture, utilizing state-of-the-art edge computing.
Contact us today if you wish to find out more about this program or wish to be a part of this exciting development.
Project SMART FALCON – AUTONOMOUS DATA COLLECTION PLATFORM (LT07-1-EIM-K02-007) The project is co-financed by the Norwegian Financial Mechanisms and the Republic of Lithuania, under the Business Development, Innovation and SMEs program.
Henrik Bache appointed CEO of eSmart Systems
Henrik Bache is appointed CEO of eSmart Systems, a leading provider of grid inspection AI-powered software. Founder Knut H. Johansen will become a board member with a focus on financing and strategy.
eSmart Systems was one of the first companies in the world to develop systems for the inspection of power grids based on Artificial Intelligence (AI). Today, a large number of energy companies in the US and Europe use Grid Vision® to inspect and maintain their transmission and distribution networks. Chief Strategy Officer (CSO) Henrik Bache will take on the position of CEO from 1 November 2021. Knut H. Johansen, who founded eSmart Systems in 2012, will become a board member and continue to work and advise on financing and strategy.
Henrik Bache is educated at Norwegian School of Management BI and has more than 10 years of experience in the financial industry. He joined eSmart Systems in 2015 and has held various senior leadership positions and previously worked in Singapore and Seattle, US.
“The company is in a unique position with Grid Vision and we have a fantastic momentum in a market that is growing strongly. The order intake for Grid Vision has increased by a factor of 3 compared to last year. We are therefore entering a period that will be characterized by scaling the company to meet the increased demand, as well as actively looking for opportunities to strengthen our offer through M&A,” says Bache.
International growth platform
This summer, eSmart Systems announced the combination with Verico, a company offering Enterprise Asset Management services and products to the utility sector. The combined company had total revenues of NOK 111 million in 2020 and 110 employees in Norway, Sweden, Germany, UK, The Netherlands, Sri Lanka and the US.
“We have fantastic staff, a high-tech and world-leading product, several of the largest global energy companies as customers and very solid investors with us on this journey. I’m impressed with what our highly skilled employees have achieved, and I am proud to have been at the helm of the company during this period,” says Knut H. Johansen.
“I’m very humble and proud of the trust shown to me by Knut and the board. eSmart Systems is entering a new phase as a company and I am very motivated to take the baton and build on the fantastic foundation that has been laid. Knut and I have worked closely and well together for the last 6 years and I want to thank him for an extremely educational period that has given me a strong platform,” says Bache and adds:
“With one of the world’s largest contextualized data sets within the industry, eSmart Systems is in pole position compared to its competitors. There is a significant network effect from aggregating customer expert input to create the best possible algorithm, resulting in a better product and more customers. The market is at a turning point, and I look forward to taking advantage of the opportunities that lie ahead.”
About eSmart Systems
eSmart Systems is a leading provider of AI-powered solutions for the inspection and maintenance of critical infrastructure. With our software solution, Grid Vision®, we revolutionize how Power Utilities operate and maintain their transmission and distribution networks. eSmart Systems offers a data-driven and condition-based approach to infrastructure inspections that can be managed from one single platform. We support companies worldwide by ensuring reduced costs, safer inspections, and prolonged asset life. For more information, please visit www.esmartsystems.com.
- Transforming UFD’s overhead line inspection from manual to automated through the DALI (Drone & AI Line Inspection) project.
- Grid Vision® AI-supported software will be used to inspect approximately 2.5 million images of UFD’s energy infrastructure.
- eSmart systems will deliver inspection services for UFD’s overhead lines over the course of the partnership.
UFD, the electricity distribution subsidiary of Naturgy, has announced a multi-year partnership with eSmart Systems to digitalize and automate its overhead power line inspection process. The DALI (Drone & AI Line Inspection) project will utilize eSmart Systems’ Grid Vision solution, which will support the full inspection and maintenance workflow across UFD’s High Voltage and Medium Voltage overhead lines. This partnership will enable UFD to provide safer, more accurate inspections and optimize inspection costs.
This partnership is unique as it delivers Inspection as a Service for all UFD’s overhead lines through the operationally-ready Grid Vision solution. This solution enables a truly virtual and digital inspection process and delivers automation from day one through the 30 AI models that are already trained on over 6 million global images. As part of the project, there will be a gradual model development and training, focusing on UFD’s specific defects, which will be delivered through Grid Vision’s Collaborative-AI approach. Through this collaboration, UFD will benefit from day one and develop relevant AI models faster than any other solution.
This partnership will support UFD in building a sustainable future by reducing their overall carbon footprint through elimination of unnecessary field visits, helicopter flights, and truck journeys.
This is another step towards a new paradigm in the operation and maintenance of our power distribution networks. We are betting on a strategy based on the digitalization of our assets and procedures, a journey where we keep innovating through several initiatives like the GALA project, in which we optimized the maintenance of our networks in terms of vegetation, and built a digital twin for our overhead lines
UFD is a forward-looking utility with a clear ambition to improve their grid asset inspections through the application of advanced technologies. We are excited to be part of their journey and look forward to delivering efficiencies and digitization of powerline inspections for UFD
About UFD
UFD, the electricity distribution subsidiary of Naturgy, is the third-largest electricity distribution operator in Spain with 3.8 million supply points and 114,000 km of powerlines. We are incorporating new technologies into our electrical grids with the aim of turning them into increasingly smart grids. The investment effort that we have made in Spain in recent years has allowed us to strengthen our network, provide digital services and improve the quality of supply to make our electricity networks in Spain one of the most modern, competitive, and efficient in Europe.
About eSmart Systems
ESMART SYSTEMS is a leading provider of AI-powered solutions for the inspection and maintenance of critical infrastructure. With our software solution, Grid Vision® we revolutionize how utility companies operate and maintain their transmission and distribution networks. eSmart Systems offers a data-driven and condition-based approach to infrastructure inspections that can be managed from a single platform. We support companies worldwide by ensuring reduced costs, safer inspections, and prolonged asset life.
Gas & Electric Company (“OG&E”), a subsidiary of OGE Energy Corp. announced today it begins a pilot program that uses artificial intelligence (“AI”) to help reduce outages caused by equipment failures. As part of its grid enhancement program, OG&E will leverage collaborative AI-powered image recognition technology that enables engineers to complete distribution pole inspections with greater accuracy and helps to reduce manual review of images.
TRC Companies, an engineering and digitally focused consulting firm with expertise in IT/OT solutions, will provide overall program management for the pilot. eSmart Systems will provide the advanced technology used during the pilot, including a best practice called Collaborative AI, with their Grid Vision® solution. The solution is designed to analyze photographic images of distribution poles to identify defects, catalog asset inventory and identify risk issues that need to be addressed to better maintain reliability. The solution is expected to accelerate image analysis and improve the inspection process, while increasing efficiency, improving safety, and enhancing overall reliability. The program will initially focus on woodpecker damage as a specific use case. Woodpeckers can and do cause considerable damage to wooden distribution/power poles in a short period of time and this technology allows OG&E to better respond to deterioration and utilize a consistent approach for repairs and replacements.
We have been excited about eSmart since hearing about them through our partnership with Energy Impact Partners (EIP). Utilizing cutting-edge technology in the form of AI to inspect our distribution poles makes our electric grid smarter, improves our business processes and helps to keep the lights on for our customers,” said Zac Gladhill, Director of Grid Integration and Innovation for OG&E. “We anticipate this technology will reduce the amount of time our engineers spend sifting through photographs of poles and “triaging” potential damage. We currently anticipate applying the technology to identify additional uses in our transmission and distribution network if the pilot meets performance objectives.
Helping our clients integrate and fully leverage these types of advanced technologies is at the core of what we do in digital at TRC. The ability to utilize our expertise in grid enhancement to combine technology with solving clients’ issues in new and innovative ways is just one way we are expanding capabilities for our clients
We are excited to be partnering with OG&E and TRC to develop a solution that will help to improve the inspection process, increase efficiency, and improve safety
OG&E’s Grid Enhancement Plan is designed to provide present and future benefits to its customers and stakeholders by focusing on the needed replacement and upgrade of equipment, while also including the installation of new technology and communications systems. The pilot program with eSmart Systems and TRC has the potential to advance the technology used by OG&E in the future and transform the way damage is assessed for years to come.
Click HERE to learn more about OG&E’s Grid Enhancement Plan.
About TRC Companies
Groundbreaker. Game changer. Innovator. TRC is a global firm providing environmentally focused and digitally powered solutions that address local needs. For more than 50 years, we have set the bar for clients who require consulting, construction, engineering, and management services, combining science with the latest technology to devise solutions that stand the test of time. TRC’s nearly 6,000 professionals serve a broad range of public and private clients, steering complex projects from conception to completion to help solve the toughest challenges. We break through barriers for our clients and help them follow through for sustainable results. TRC is ranked #20 on ENR’s list of the Top 500 Design Firms in the United States. Learn more at TRCcompanies.com and follow us on Twitter, LinkedIn and Facebook.
About eSmart Systems
eSmart Systems is a leading provider of AI-powered solutions for the inspection and maintenance of critical infrastructure. With our software solution, Grid Vision®, we revolutionize how Power Utilities operate and maintain their transmission and distribution networks. eSmart Systems offers a data-driven and condition-based approach to infrastructure inspections that can be managed from one single platform. This platform also employs Collaborative AI, a method for combing the best qualities of Machine Learning and Subject Matter Experts to achieve the best near-term inspection outcome, while also automatically training the AI for long-term success. We support companies worldwide by ensuring reduced costs, safer inspections, and prolonged asset life. For more information, please visit www.esmartsystems.com.
About OG&E
Oklahoma Gas and Electric Company, a subsidiary of OGE Energy Corp. (NYSE: OGE), is Oklahoma’s largest electric utility. For more than a century, we have provided customers in Oklahoma and western Arkansas the safe, reliable electricity needed to power their businesses and homes with the nation’s lowest electric rates, according to S&P Global Market Intelligence. Our employees are committed to generating and delivering electricity, protecting the environment, and providing excellent service to nearly 871,000 customers. OG&E has 7,081 MW of electric generation capacity fueled by low-sulfur coal, natural gas, wind, and solar. OG&E employees live, work, and volunteer in the communities we serve. For more information about OG&E, visit us at OGE.com or follow us on Facebook, Twitter and Instagram.
SOURCE OGE Energy Corp.
eSmart Systems, a leading provider of grid inspection AI-powered software, is pleased to announce the combination with Verico, a Norwegian company offering specialized Enterprise Asset Management services and products to the utility sector.
Verico has more than 20 years of experience helping especially energy clients with establishing and maintaining digital asset information through extensive usage of high data quality and visualization of asset information. They have an in-deep understanding of customer needs, both at a technological and operational level. By joining forces, we strengthen the scale-up platform further, and this is an important step towards our goal of becoming the number one global enterprise in the market for AI-supported inspection of infrastructure
Since its inception in 1999, Verico has successfully completed demanding projects for Transmission System Operators (TSO) such as Statnett SF in Norway and TenneT BV in The Netherlands, as well as several regional utility companies both in Norway and internationally. eSmart Systems builds and delivers next-generation software solutions to leading utilities in Europe and US, by combining the use of drones with AI for powerline inspections, grid maintenance planning and to optimize energy flexibility.
We have a high degree of complementary competencies, services and clients. This enables the combined company to offer AI-supported products and services at an industrial scale”, says Knut H. Johansen.
Verico will complete eSmart’s existing offering with field apps for data collection, web-based software for visualization of asset information and APIs for integration with legacy systems, in addition to bringing deep asset inspection domain knowledge.
There is a strong strategic rationale for eSmart and Verico to unite, including the ability to offer-end-to-end services and addressing more of the power grid. There is also a perfect business culture fit and we have already identified several specific joint opportunities. We look forward to growing our business together,” says Vidar Blomvik, CEO of Verico.
The combined company had total revenues of NOK 111 million in 2020 and 108 employees at offices in Norway (Halden, Sandefjord, Oslo and Stavanger), Sweden, Germany, UK, The Netherlands, Sri Lanka and the US.
About eSmart Systems
eSmart Systems is a leading provider of AI-powered solutions for the inspection and maintenance of critical infrastructure. With our software solution, Grid Vision™, we revolutionize how Power Utilities operate and maintain their transmission and distribution networks. eSmart Systems offers a data-driven and condition-based approach to infrastructure inspections that can be managed from one single platform. We support companies worldwide by ensuring reduced costs, safer inspections, and prolonged asset life. For more information, please visit www.esmartsystems.com.
About Verico
Verico offers specialized services and products within Enterprise Asset Management. Our references within the utility sector span industries like electric power generation and distribution, gas distribution and other utilities. In addition to our unique photography-based data acquisition and quality assurance service, Verico provides services within asset data modelling, asset documentation, software development and integration, project management and more. Verico was established in 1999 and is headquartered in Ipark, Stavanger, Norway. For more information, please visit www.verico.com.
eSmart Systems, a leading provider of grid inspection AI-powered software, supports Axpo in a service agreement to digitalize overhead line inspections. Axpo, Switzerland’s largest producer of renewable energy and an international leader in energy trading, has launched an ambitious programme called Grid 4.0 to develop new approaches for optimized operation of future power grids.
Operational scale-up after a successful pilot
eSmart Systems first started working together with Axpo in April 2020 with a pilot project for the AI-powered grid inspection tool Grid Vision®. Axpo experts tested the solution in daily operations, to prove its value in the end-to-end inspection process.
Leveraging drones, aerial images, and Axpo experts’ knowledge through Grid Vision’s advanced AI models for defect detection on power lines, Axpo adopted a collaborative AI approach. It enabled the subject matter experts to utilize AI-generated image observations to save time and increase precision.
After this successful pilot, Axpo plans to roll out Grid Vision in its entire grid operations, where maintenance experts will use the virtual inspection software for the inspection of 1900 km overhead lines. Axpo’s maintenance teams also perform power line inspections for other grid operators such as Swiss Transmission System Operator Swissgrid.
Grid Vision will provide great support for our powerline inspections. We see real value using the tool in our daily work, through improved visibility and awareness of our assets’ condition and the continuous learning of the algorithms driving better asset performance management
Operational ramp-up commenced in May 2021 with the deployment of eSmart Systems’ Grid Vision AI-based solution to support the full inspection and maintenance workflows.
This phase will be about much more than improving inspection processes. We strive to provide a seamless experience from planning inspections through to analyzing inspection results, working closely with Axpo to integrate into current architecture and analytics tools like maintenance dashboards
We are excited about implementing Grid Vision into our operations. The cooperation with eSmart Systems enables the move from procedural to condition-based maintenance and will be an important step to ensure a highly reliable grid in the future” explains Johannes Manser, Head Business Intelligence and Data Analytics, and programme manager of Axpo’s digital transformation programme Grid 4.0.
About eSmart Systems
eSmart Systems is a leading provider of AI-powered solutions for the inspection and maintenance of critical infrastructure. With our software solution, Grid Vision®, we revolutionize how Power Utilities operate and maintain their transmission and distribution networks. eSmart Systems offers a data-driven and condition-based approach to infrastructure inspections that can be managed from one single platform. We support companies worldwide by ensuring reduced costs, safer inspections, and prolonged asset life.
Energinet and eSmart Systems leverage synergies between human experts and AI-based analytics to succeed in the transition from manual to automated processes thanks to a revolutionary new Grid Vision® corrosion module.
A co-development within eSmart Systems’ Grid Vision Innovation Lab programme
The need for automated processes
Rust detection on aging infrastructure is a challenging task. With steel towers constructed primarily in the 1960s and 1970s and in a maritime climate, Energinet faces a particular challenge when it comes to rust.
We needed a solution to help streamline our rust inspections and at the same time improve the end-to-end maintenance process,” said Kenneth Nørup Knudsen, Team Leader and Senior Specialist at Energinet of Energinet. “Working with eSmart Systems gives us access to world class AI and inspection management tools, and the ability to participate in the design of this all-new module is an exciting step on our innovation and digitalization journey.
From images to actionable information
Energinet and eSmart Systems have a long history together. The journey towards a strong partnership began in 2017 when Energinet needed a solution to instantly detect and quantify rust on their towers. The companies now embark in a co-development to create an all-new module of eSmart Systems’ inspection software Grid Vision, which gives Energinet an overview of grid condition by assessing the percentage of deep rust on each asset using advanced AI algorithms.
eSmart Systems will deliver an asset-based inspection solution relying on collaborative AI to harness SMEs expertise, increase automation and asset insight. That allows Energinet to monitor rust evolution on towers over time and even to enable predictive maintenance.
We are excited to partner with eSmart Systems to co-design a solution that will streamline our inspection processes. Grid Vision uses an asset-based approach that is easy to leverage in operations and integrate with our existing systems
Energinet is one of the early movers in the market, and we are thrilled to partner with them within the Grid Vision Innovation Lab programme to develop user-friendly solutions that improve the inspection process and reduce costs. This approach will ensure the resulting solution incorporates user-driven criteria and provides maximum business value to Energinet
eSmart Systems’ Grid Vision Innovation Lab is a revolutionary programme whereby customers are invited to co-design new solutions with eSmart Systems’ team of industry digitalization experts. Members of the programme have the chance to directly influence Grid Vision’s development and get early access to the new features while eSmart benefits from this unique forum to gather feedback and fine-tune the solutions before official release.
Leveraging synergies between human experts and AI-based analytics, E.ON, one of Europe’s largest energy companies, and eSmart Systems, a leading provider of grid inspection AI-powered software, are joining forces to improve European distribution grid asset management by making inspection processes safer for people, more efficient for utilities, and more sustainable for the environment.
The partnership, which is initially set to run for 12 months, commenced in January with the deployment of eSmart Systems’ Grid Vision™. This AI-based solution is supporting the full inspection and maintenance workflows across the three E.ON distribution system operators E.DIS, MITNETZ STROM and Westnetz, totaling approx. 45 000 kilometers of high- and medium voltage overhead lines. The software detects, analyzes and visualizes components and potential defects within the infrastructure on the basis of pictures made by drones. E.ON will leverage eSmart Systems’ technologies to adopt asset-based virtual inspections of distribution lines into existing business processes.
Thomas König, responsible for networks on the E.ON Board of Management, emphasizes: “Digital and innovative solutions are key for our grids in being the backbone of the energy transition. In order to achieve the best for our network customers, we also rely on strong partnerships with start-ups. By partnering with eSmart Systems, we are improving the accuracy of power grid inspections and the security of supply. Ultimately, fewer mast climbs will be necessary, resulting in an increase in work safety.”
Strong partnerships are the key to success. Together with E.ON, we are moving toward operational excellence using state-of-the-art tools that leverage digital technologies and artificial intelligence. We are pleased to combine E.ON’s leading energy expertise and operational skills with eSmart Systems’ expertise in applied AI to pioneer the energy transition
About E.ON
E.ON is an international investor-owned energy company, which focuses on energy networks and customer solutions. As one of Europe’s largest energy companies, E.ON plays a leading role in shaping a clean, digital, decentralized world of energy. To this end, around 75,000 employees develop and sell products and solutions for private, commercial and industrial customers. More than 50 million customers purchase electricity, gas, digital products or solutions for electric mobility, energy efficiency and climate protection from E.ON. As an innovation leader, E.ON provides newest technological solutions to its customers, and drives cross-industry partnerships in the energy sector and beyond. E.ON is headquartered in Essen, Germany. For more information, please visit www.eon.com.
About eSmart Systems
eSmart Systems is a leading provider of AI-powered solutions for the inspection and maintenance of critical infrastructure. With our software solution, Grid Vision™, we revolutionize how Power Utilities operate and maintain their transmission and distribution networks. eSmart Systems offers a data-driven and condition-based approach to infrastructure inspections that can be managed from one single platform. We support companies worldwide by ensuring reduced costs, safer inspections, and prolonged asset life.
This year, German energy companies E.ON and innogy merged their venture capital teams and portfolios under a new venture arm called Future Energy Ventures. The new entity’s mission is to identify, fund, and mentor some of the most exciting start-ups in the future energy sector.
innogy Ventures, now Future Energy Ventures, was one of the investors that helped eSmart Systems raise 34,4 million USD of capital in 2019. As an owner, they have provided valuable support and have played a vital role in eSmart Systems’ expansion in the European market.
We sat down with Jan Palasinski, Investment Partner at Future Energy Ventures and member of the Board of Directors at eSmart Systems, to talk about Future Energy Ventures goals as a new entity, their investment strategies, and their relationship with eSmart Systems.
Can you start by telling us about Future Energy Ventures, what it does, and what are your focus areas at the moment?
Future Energy Ventures is the venture capital and collaboration platform of E.ON. As a newly launched organization, we focus on helping our existing portfolio companies find new business opportunities and scale with our mother company E.ON. Given that a share of our combined portfolio is exposed for the first time to E.ON, we want to make sure their solutions reach the Business Units.
Aside from growing our existing portfolio, we are also actively scouting the market for start-ups developing digital and digitally-enabled technologies and business models that have the potential to redefine the future energy landscape. We focus on digital, scalable, and asset-light companies seeking Series A and beyond funding.
Our goal is to capitalize on the investment opportunities presented by the transition to this new energy future and maximize scaling opportunities for our portfolio.
Earlier this year, the merger between E.ON and innogy was completed. Why did integrating E.ON and innogy as one entity make sense?
Following E.ON’s acquisition of innogy, the two venture businesses have now been fully integrated into one operating structure. This is an extremely exciting development. Not only does the integration makes E.ON one of Europe’s largest operators of energy networks, energy-related infrastructure, and innovative customer solutions, but E.ON and innogy share the same vision for the future of energy.
Aside from its core operational activities, innogy’s venturing activities were also combined with E.ON’s to create a brand new entity that continues to identify, fund, and mentor some of the most exciting start-ups in the future energy sector. This entity is Future Energy Ventures.
We at Future Energy Ventures, share a common vision and approach to investing and help growing the start-ups solutions for a more digital, decarbonized, and democratized energy system. We believe that businesses need more than just money to succeed. They need collaboration, mentoring, and the opportunity to partner with other organizations that can help accelerate their growth trajectory and build their business.
We build on the foundations laid by the teams from both E.ON and innogy and the more than 60 portfolio companies we have worked with and invested in over 10 years. We reinvented ourselves to be more visionary, more connected and more impactful.
Why did Future Energy Ventures invest in eSmart Systems, and how does eSmart fit with your strategy?
My colleagues invested in eSmart Systems mainly because of its innovative approach to grid asset management and maintenance. eSmart’s technology fits perfectly into E.ON’s energy networks business, as it helps to prolong asset life and to increase operational and capital efficiency.
eSmart Systems’ AI and digital capabilities are paired with a profound knowledge of the energy industry. This is a perfect match for our investment hypothesis to invest in startups that support the digital transformation of the energy system. eSmart’s main product, Grid Vision, which automates grid asset inspections, is the perfect example of how machine learning can reduce maintenance costs while also increasing its quality.
Since I have joined eSmart’s board of Directors I have also been impressed by the experienced management team and the traction they had already established with their global customer base, as well as with prestigious international co-investors.
How do you give growth support to your investments and eSmart Systems in particular?
Future Energy Ventures’ investment team is in constant exchange with all E.ON’s business units, in a dialogue that aims at capturing their most pressing problems and at proposing innovative solutions coming from the startup world. We typically start our match-making activities between startups and business units even before investing, to make sure that the expectations of both parties will be met during our journey together.
In the specific case with eSmart Systems, the collaboration started already back in 2019 when innogy Ventures, now Future Energy Ventures, made an investment and linked the start-up with two of our DSOs (WestNetz & MitNetz). This connection resulted in two very successful PoCs on automated asset inspection.
What role do you see eSmart Systems play in the future energy industry?
eSmart Systems will be one of the leading AI-driven software providers for the inspection of powerlines, grid maintenance planning, and asset management. The more data will be processed by the eSmart software, the better the quality of the service will become, and thus customer satisfaction.