Strong Growth in 2023 will Support Volue’s Ongoing Journey

Trond Straume, CEO, Volue, shares his thoughts on Volue's activity in 2023 while providing an overview on what is to come next year.

Publisert

6. des. 2023

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December is traditionally a time to pause and reflect on the passing year, looking back on successes and challenges, while focusing on the opportunities and possibilities of the next 12 months.  

It is also a period that encourages gratitude. Gratitude for experiences gained, lessons learned, and the growth of new and existing partnerships. I also want to take this opportunity to express my deep appreciation and gratitude for the people of Volue.  

With great people, delivering end-to-end platforms and technology services, we continue to drive our company forward. 

This work is generating increased revenues for energy companies not only in Europe but across the world, supporting a sustainable energy transition in the process. I thank my colleagues for their ongoing efforts over the last 12 months and look towards 2024 with optimism, excitement, and confidence. 

The importance of electrification  

Our world is changing.  

Electrification, or the process of moving away from fossil fuels, continues to gain momentum as an important response to global challenges. Its surge is propelled by a commitment to, and need for, increased sustainability, demands for greater energy security, and aims to reduce carbon emissions to combat climate change. I would argue that it is one of the greatest challenges of our time.  

Of course, a key driver to the success of this shift will be the wider adoption of renewable energy sources, like solar and wind power. This in turn will reshape the energy landscape with cleaner alternatives. Electrification stands as the main path to a greener future, redefining our approach to energy with unparalleled efficiency and environmental benefits.  

Volue’s work is directly supporting this electrified future. We have made significant progress during 2023 but know and understand that there is much more to come. This is an exciting prospect for myself and my colleagues.  

Trond Straume, CEO, Volue

Before the year began, I spoke widely with our customers and stakeholders, as I always do. This feedback is something I place great value in, as it ensures that our offering suits ever-changing market requirements. One recurring theme is the desire of our customers for an integrated value chain. We responded to the needs of the market and introduced our Smart Power software to the market earlier this year.

Trond Straume

This was our biggest development project to date and illustrated the culmination of years of hard work, working together with some of Europe’s leading power producers.

We fully understand and appreciate that automation of optimisation and trading processes are key if power producers are to stay competitive. Smart Power facilitates that. To support that further, the platform’s ability to ensure optimal use of power portfolios will deliver increased resource efficiency, illustrating our strong focus on sustainability. 

With the growing share of renewables, power production, planning and trading has become more challenging and volatile. Volue’s Smart Power software will support our customers on the green energy transition by providing solutions for tomorrow’s challenges.  

Operational highlights  

The initial launch of Smart Power was quickly followed by the announcement that Spanish energy giant Iberdrola had signed a framework agreement with us for the software. Indeed, 2023 was a year of several important announcements to the media, markets, customers and stakeholders.  

Spring saw the launch of Spark by Volue’s first service, harnessing partner collaboration to deliver a data-driven smart-charging solution. Later, we announced a significant tender win with N1, in a deal that further strengthened our presence in the Nordic Power Grid market. 

May saw the acquisition of Enerim Oy’s Wholesale Markets Business Line, then the subsequent launch of our Volue Energy Market Services product line. As a market leader for software-backed services in the renewables sector, it provides portfolio management as a service to a growing market, including small to medium wind, solar and battery players. 

By way of context, we see substantial potential in the growth of batteries, wind and solar. The acquisition and increased focus on portfolio management as a service is a direct consequence of a strong belief in this segment, and I look forward to expected growth in this area over the next 18 to 24 months.  

In autumn, the introduction of our algo trading software in the continuous intraday market of OMIE not only consolidated our position in Iberia but provided a further platform for the region to meet its green ambitions. By strengthening our presence in energy trading across Spain and Portugal, while making ongoing expansions into Europe, we are solidifying our commitment to a greener future.  

Another significant highlight for me has been our successful entry into Japan. Volue established a Japanese office in early 2022, and we launched our initial offering in September that year. 

Since then, we have seen significant activity in the country over the last 12 months. Of course, Japan has - not surprisingly - adopted the Nordic market design, which is fantastic news for Volue, given our extensive experience in shaping the Nordic model. We have now grown from one customer at launch to 22 towards the end of this year, perfectly highlighting our Japanese success to date. All the opportunities are there for further growth, and we are ready to take them.  

Taking advantage of market opportunities  

We will continue to take advantage of opportunities, as and when they arise. We are well placed to respond to those that come our way, particularly within the context of the large, fast-growing markets we operate in. Not only are our markets growing, but installed renewable capacity and the number of power producers is also growing, fueled by the electrification I referenced earlier. 

Towards 2030, Europe will add more than 400GW from renewable sources. Though a significant part of this will come from the transition of existing portfolios in the over 100 companies that control 70% of generation today, the rise in output will also come from the thousands of smaller entrants with solar and wind assets. These need to be connected to the market and it is our mission to enable this. Of course, we should also consider the 200 million distributed energy resources that will also have to be connected to the grid to stabilise it, as the continued shutting down of stable baseload generation, like that of coal, increases.  

We are perfectly positioned to support these new market entrants. Volue is market-proven across regions, markets, and product areas. This provides the perfect platform for growth that is sustainable and profitable. Our robust foundation provides long cash flows and churn protection, while we continue to build SaaS revenues as part of our go-to-market strategy.  

By continuously evaluating our existing offering while assessing new opportunities, we will ensure that our strategy delivers sustained growth and innovation. 

Looking to the future  

Through digital platforms and innovative solutions, we deliver software and services critical to society for a cleaner, better, and more profitable future. The last 12 months have seen this message told to audiences new and old, from the Nordics, Europe, and East Asia.  

It’s a story we will continue to not only tell in 2024, but expand upon, as we target ongoing organic growth and increased revenues. That in turn will support our steadfast ambition: to become the number one software and software-backed service provider to the European energy system by 2030. 

We are well on our way to this position.  

All that remains to be said is thank you.  

Thank you to our customers and stakeholders, and thank you to my colleagues.  

I wish you and your families an enjoyable festive period, whatever it means to you, and a happy and peaceful New Year.  

Trond.