Maarten van de Pas, ASN Impact Investors

‘The only business plan for Europe is to accelerate investment in energy. And for that, in addition to governments and pension funds, private investors are also needed.’ That was the urgent message from Diederik Samsom, one of the speakers at the symposium Opportunities for Energy Independence on June 16 in Amsterdam.

For the European energy transition, 800 billion euros per year is needed, of which 40 to 50 billion euros must come from private investors, according to Samsom. ‘Private investors need to take over the baton from the government.’

Samsom spoke during Opportunities for Energy Independence, a symposium organized by PYM, ASN Impact Investors, StartGreen Capital, BigCircle Ventures, and Frontier Energy about a robust energy system for the future and the investment opportunities it offers for funds and private investors.

Samsom was previously a campaign leader at Greenpeace, a Member of Parliament and party leader of the PvdA, and worked as chief of staff to the European Commissioner for Climate on the European Green Deal. He is now an advisor and, among other things, a commissioner at GasUnie. ‘The race between climate change and humanity’s efforts to counter it is getting exciting, but we still have a chance. With the help of innovation and AI.’

Climate hits us in the face

There are three developments to keep an eye on, according to Samsom. ‘We are living in a runaway climate. Look at the extreme storms and floods in Valencia earlier this year. Or take Derna in Libya, where two years ago torrential rains and mudslides wiped out a large part of the city.’ At first, it was Al Gore with his film An Inconvenient Truth and the young student Greta Thunberg who pointed out the urgency of climate change, but now the climate itself is doing so, Samsom observes. ‘Climate change is hitting us in the face.’ 

Steep innovation curve

The ‘breathtakingly steep climb of the innovation curve’ is another important development. The pace of technological development, especially green technology, is now incredibly fast: wind and solar energy, batteries, electrolyzers for hydrogen production... ‘The solar energy factor has grown a hundred times faster than predicted.’

As a physicist, Samsom admits he believes in technology as a solution. ‘AI, or artificial intelligence, allows us to design new materials and technological applications with computers, no longer just in a laboratory. This makes the innovation curve rise even faster.’ Admittedly, AI consumes a huge amount of energy, but it also delivers a lot. On balance, the outcome will be positive.'

Europe in a new world

The third important development, according to Samsom, is that Europe is no longer naïve. ‘Europe was completely dependent on Russia for its energy needs. We were warned that things would go wrong one day, but thought that Putin’s expansion plans wouldn’t escalate so quickly.’ 

The invasion of Ukraine was a rude awakening. ‘The era of cheap fossil energy will not return, so Europe must accelerate the switch to clean energy and become less dependent on fossil fuels. We are not moving toward a new world; we are already in it.’

Green Deal

As for politics: according to Samsom, we should ignore headlines about the European Green Deal being postponed or watered down and about US President Trump. ‘Then you see the big movement, the important developments that will shape the next 10 to 15 years. We wrote the Green Deal in 2019, and since then it has survived a pandemic and a war. The sense of urgency comes and goes, has now faded again, but does not disappear. Progress never follows a straight line.’

According to Samsom, the effectiveness of the initiatives to make Europe climate neutral by 2050 is significant. ‘CO2 emissions are falling as expected. Whether we reach the finish line depends on the will and capacity of society.’ Companies also play a role in this. Don’t they need a level playing field if they want to become more sustainable? According to Samsom, progress is not made by companies that want a level playing field. ‘There will be less rather than more of a level playing field, because that comes with rapid change.’

The Netherlands and industrial policy

Meanwhile, the Netherlands should invest more in innovation to increase its competitiveness. Germany, for example, decided to invest 1,000 billion euros in innovation and industry. ‘This is being followed by France, Italy, and Spain. In the Netherlands, we dislike industrial policy. But we cannot decouple ourselves from Europe.’ 

He also wants to add—with an eye on the upcoming elections—that the Netherlands needs a vision for the entire energy infrastructure, along with a plan to realize it. ‘Both are currently lacking.’

Local solutions for the energy transition

After Samsom’s call, Erhan Yildiz of Startgreen Capital and Nick Brugman of ASN Impact Investors essentially responded to it. Their vision for the energy infrastructure: investors can help get the stalled Dutch energy transition moving again by investing specifically in local projects. 

The Netherlands is struggling with increasing grid congestion and a growing number of hours with negative electricity prices, indicating an inefficient energy system. The current large-scale approach with offshore wind and large solar parks is insufficient to complete the energy transition. Instead, Startgreen and ASN Impact Investors have developed a decentralized strategy focused on directly available solutions at the local level. 

Implementing proven technology today

Their strategy combines five investment themes: clean energy generation, clean industry and circular production, clean mobility, built environment, and clean grid technology, with a focus on proven technologies that can already be implemented today.

This delivers local impact, combined with attractive returns for investors from the projects, supported by the growing demand for local energy solutions and supportive government subsidies such as SDE++.

Battery storage for grid balancing

Yildiz and Brugman illustrated their story with three practical cases. The first project combines solar rooftops with battery storage and charging infrastructure, with cash flows supported by subsidies, energy trading, and charging revenues. The second project involves a 6 MW battery storage system next to a solar park for grid balancing, providing more stable income. The third project collects residual gas at water treatment plants and supplies it as biogas to, among others, construction sites, where it generates clean electricity. 

By focusing on proven technologies and local partnerships, high-net-worth individuals and family offices can make a meaningful contribution to Dutch energy independence while benefiting from the structural market opportunities offered by the energy transition.

Turning innovation into market solutions

Almost at the source of the innovations that contribute to greater energy independence and innovative strength in Europe is BigCircle Ventures, the venture builder of Freerk Bisschop. His mission is to turn groundbreaking technologies into concrete market solutions for climate and circularity challenges.

These technologies are still hidden in the universities and research institutes within the BigCircle Ventures network. Bisschop gets involved earlier than traditional venture capital investors because he identifies promising deep tech innovations at the source. 

Once identified, they are thoroughly validated by sector experts before a startup is built around them with the right entrepreneurial team. ‘It’s not just about brilliant technology, but also about the right people who can turn this technology into a successful company.’ 

BigCircle aims to become the world’s largest cleantech venture builder by founding dozens of new greentech startups in the coming years that will have an impact on achieving the climate goals for 2050. ‘Many groundbreaking technologies remain unused because there is no bridge between research and the market. We are that bridge.’

Renewable energy for Africa

That there are also opportunities for investments in energy independence outside Europe became clear from the presentation by Anders Hauch, co-founder and Investment Director at the Danish Frontier Energy. His private equity fund is shaping the energy transition in Sub-Saharan Africa with targeted investments in renewable energy projects involving solar, wind, and hydropower.

Africa is on the brink of an energy revolution, which Hauch wants to help accelerate. Since its founding in 2011, Frontier Energy has developed into one of the leading investors in the African market, developing, financing, building, and managing projects. This integrated approach distinguishes Hauch’s company from traditional funds that often limit themselves to financing.

In addition to its headquarters in Copenhagen, Frontier now has offices in Nairobi, Kampala, Kigali, and Dar es Salaam, with a strong local presence in core markets such as Kenya, Uganda, Tanzania, and Rwanda. 

You have to be on the ground, Hauch explained. You cannot be successful in the African energy market from Europe without in-depth knowledge of local conditions and strong partnerships with local players. With more than 1,100 MW of renewable energy in various stages of development, his fund shows how you can make large-scale impact. Every megawatt that Hauch adds to the African electricity grid contributes to economic growth and improved living conditions. 

Ultimately, Frontier Energy wants to help create a sustainable, self-sufficient energy sector in Africa that lays the foundation for long-term economic development.