ABB Invests in Generative AI Energy Manager Startup Edgecom
January 6, 2024
ABB is investing in a strategic partnership with Edgecom Energy, the Toronto-based energy management startup. The company’s unique energy management platform uses artificial intelligence to help industrial and commercial users manage and reduce peaks in their power demand. It is the first in the market to use a generative AI copilot to optimize the user experience.
The partnership involves a minority investment in Edgecom through ABB Electrification Ventures, the venture capital arm of ABB Electrification. ABB Electrification Ventures is part of the group-wide ABB Ventures framework, investing in transformative technology companies that advance ABB’s vision of a more sustainable, electrified, and automated world. Edgecom was a winner in ABB’s 2024 Startup Challenge.
The International Energy Agency has stated that the world must double the pace of energy efficiency progress in the next decade to meet net zero targets. It highlights the key role digital energy management must play. Innovation teams at ABB’s Smart Power division will collaborate with Edgecom to develop new AI-enabled solutions to help customers in North America save energy and reduce costs.
Massimiliano Cifalitti, President of ABB’s Smart Power division, said: “Partnerships are key to ABB Electrification’s artificial intelligence strategy for energy management. Edgecom shows how gen AI can create business value from complex data sets with an easy-to-use interface. The company also has the scalability and interoperability ABB is looking for as we grow our AI ecosystem for energy management.”
Artificial intelligence can be a game-changer for energy management. ABB’s digitalised electrification solutions collect data from across a site’s power network; Edgecom’s AI Energy Copilot can turn complex dataset into energy saving opportunities. Adapting to the customer’s goals, the AI Energy Copilot suggests small adjustments to lower bills or smart ideas to reduce environmental footprint.
Behdad Bahrami, CEO and Co-Founder of Edgecom, said: “ABB’s commitment to our vision underscores the transformative impact we’re bringing to energy management. Together, we’re empowering large energy users to achieve significant cost savings and emissions reductions through innovative solutions that deliver real world cost savings and emissions reductions. As the energy transition accelerates, innovative partnerships like this are key to creating a more efficient and sustainable future for industries worldwide.”
Mehdi Parvizi, CTO and Co-Founder of Edgecom, added: “Generative AI is transforming energy management by enabling tailored strategies that unlock savings across energy-intensive assets and facilities. This technology optimizes asset performance, integrates operations with energy market programs and price tariffs, improves energy efficiency, and guides operator behavior toward more effective energy decisions.”
The investment in Edgecom brings the total portfolio of ABB Electrification Ventures to 15 companies, with investments totalling €80 million since 2021. It is part of ABB Ventures, which has invested more than $450 million in 70 startups across electrification and automation sectors since 2010.
