Grid- and energy-optimisation software company Open Access Energy (OAE) has secured a $750 000 investment from technology innovations venture capital firm Factor E Ventures.

The funding marks the initial tranche of a $1.5-million seed round for OAE, which is developing software solutions to address South Africa’s energy challenges.

OAE’s technology connects electricity generated from distributed renewable sources with unmet demand, and can enhance grid reliability, reduce emissions and create new revenue streams for independent power producers (IPPs).

South Africa’s reliance on coal-fired power generation has resulted in a grid plagued by instability and high costs, as well as limiting access to cleaner, renewable sources, OAE says.

With this initial funding, OAE aims to expand its technological capabilities, refine its software platforms and increase its market presence in South Africa and beyond.

The investment is expected to enable the company to scale operations, develop new features and strengthen its position in the energy sector.

“As we strive to decentralise energy and ensure universal access to clean power for all South Africans, this support will accelerate our innovation capabilities and market reach,” says OAE CEO Gerjo Hoffman.

The company’s Amptera and Energypro platforms provide real-time energy transactions and enhance energy management for IPPs and municipalities.

“OAE is addressing significant inefficiencies in South Africa’s energy sector with its innovative software. It is well-positioned to tackle the country's energy challenges and drive its transition to renewable sources,” says Factor E Ventures partner Tenbite Ermias.

“We are excited to lead this initial investment in their $1.5-million seed round. Our support highlights our belief in their potential to make a substantial impact,” he says.

South Africa has one of the world’s largest domestic grids and is undergoing a significant energy transformation. The cross-border energy trading in the Southern African Development Community complements this shift. The energy transition also highlights the substantial climate and social impact decarbonising South Africa’s power sector through distributed renewable energy can have.

As the country transitions towards greater reliance on renewables and distributed generation, the company's technology is strategically positioned to support this evolution by offering tools for market participants to effectively navigate and thrive in the changing energy landscape, OAE says.