August Energy and Energeia have launched a $100 million infrastructure partnership aimed at financing energy efficiency projects across commercial buildings and industrial facilities in India.
The new platform, August Energeia, will focus particularly on cooling-as-a-service projects while also supporting a broader range of energy infrastructure upgrades.
Singapore-headquartered August Energy will provide capital, techno-commercial structuring and business development capabilities.
Energeia will contribute energy auditing, engineering execution and local sales capabilities.
The partnership is designed to address one of the largest barriers to energy efficiency investment: the upfront capital required to replace or modernize infrastructure.
August Energy is bringing capital from institutional investors including Aravest, Green Tower, Proparco, responsAbility and Aseem.
Energeia will provide IoT-enabled energy audits and an AI-powered digital platform for managing projects.
Under the energy-as-a-service model, commercial and industrial customers can upgrade cooling, heating, steam, compressed air, fuel switching and motor-driven systems without making the upfront capital investment themselves.
The platform can also support renewable energy deployments involving solar, wind and storage.
August Energeia will finance, implement and manage the infrastructure, with project economics tied to energy performance and savings.
The model is intended to allow companies to preserve capital for manufacturing capacity and other core growth projects while lowering energy costs and emissions.
Target sectors include pharmaceuticals, automotive, food and beverage, chemicals, cement, steel, hospitality, healthcare, data centers, REITs and commercial real estate.
The partners ultimately intend to aggregate individual efficiency projects into an infrastructure asset class capable of attracting larger pools of institutional capital.
KEY QUOTES:
“The technology to optimise and decarbonise Indian factories and buildings has been ready for years, but high upfront prices, energy savings uncertainty and L1 procurement mandates drastically limited adoption. By shifting the financial model from high-risk CAPEX to predictable, performance-linked OPEX, we are removing the upfront friction and delivering outcomes rather than selling products.”
Sookrit Malik, Co-Founder And CEO Of Energeia
“India’s next phase of industrial growth will require businesses to become more energy-efficient and resilient without diverting capital away from their core operations. We believe energy infrastructure should increasingly be consumed as a service, with investment, technology and performance responsibility sitting with specialist operators.”
Vishal Jain, Co-Founder And Head Of India At August Energy
