ESB is investing €3.3 million in Endeco Technologies, an Irish company that helps large, industrialised energy users reduce their power consumption.
The State-owned electricity group is taking a stake of about 25 per cent in Endeco via its €200 million NovusModus fund.
Endeco, previously known as Wirelite Sensors, is already backed by high-profile private investors including the Cairn Homes chief executive, Michael Stanley, and Sarah Bean, the Irish head of beauty products multinational Coty, whose brands include Davidoff and Rimmel.
Conor Stanley, a tech investor and a member, alongside Michael Stanley, of a well-known property industry family, is also an investor. Endeco's other shareholders include AIB's Seed Capital Fund, ACT Venture Capital, and Enterprise Ireland.
In addition to the ESB investment, Endeco has also raised more than €1 million from its other shareholders, including EI. Endeco, which operates primarily in the UK market.
Endeco will more than double its workforce to 46 staff following the investment. It currently sells its technology to more than 200 businesses in the UK, such as factories and transport companies. Its products help clients reduce power consumption by automatically adjusting their control systems.
Grid operators
Its services are also targeted at grid operators, who can use the technology to help balance loading on the network.
The company was founded by Kildare-based businessman Michael Phelan, the current chief executive. He said Endeco will use the cash to further its growth plan and invest in research and development.
ESB plans to leverage its investment in Endeco to provide power consumption reduction solutions to some of its biggest industrial customers.
Paul Mulvaney, executive director of innovation at ESB, said the investment would result in a "two-way knowledge transfer" between the power company and Endeco.
“We have been looking at Endeco for a good while via the NovusModus fund. It is the only Irish company offering these type of services in the UK,” he said. “We can leverage off each other.”
NovusModus, which is managed from the UK by Greencoat Capital, has made about 15 investments on behalf of ESB. The fund is coming to the end of its investment phase, sometime later this year, Mr Mulvaney said.
He said no decision had yet been taken on whether a new fund would be set up, but he insisted that ESB would continue to make investments in the green energy and consumption reduction areas.
NovusModus has taken stakes in companies such as Nualight, Cylon Controls, Lumicity and Geothermal International.
