Munich Startup: What does your startup do? What problem do you solve?
Kyon Energy: Kyon Energy develops, plans, and operates grid-connected battery storage systems. These stabilize the power grid and enable a clean, sustainable, and socially acceptable energy supply using renewable energies. They store electricity at times when surplus energy is not needed and feed it back into the grid when demand is high. This reduces grid congestion and sharp fluctuations in electricity prices. Overall, this allows for the expansion of renewable energy sources.
And this is enormously important, because Germany has set itself ambitious goals: By 2030, 80 percent of electricity consumption is to come from renewable sources, and conventional, predictable energy sources are to be gradually phased out. At the same time, current events demonstrate that our power grid must become more independent. The expansion of renewable energies is a key prerequisite for the energy transition, but our electricity infrastructure is not designed for the high volatility. The consequences are instabilities in the power grid, high electricity prices, and increased congestion.
Currently, these volatility fluctuations, combined with a lack of storage capacity, are even causing renewable energy generation plants to be shut down repeatedly. In 2021, this alone resulted in an absolute loss of 5.82 TWh of electricity. This could have supplied over 2 million households for a year.
And this is exactly where we come in with Kyon Energy. Through our battery storage systems, we make an active contribution to the energy transition and enable a stable electricity infrastructure.
Kyon Energy uses storage systems in the two- to three-digit megawatt range
Munich Startup: But that's been around for a long time!
Kyon Energy: Actually, not really yet. Battery storage systems currently exist mainly on a smaller scale, for example for home storage in conjunction with PV systems or those for commercial operations. We are scaling much larger: Our storage systems have capacities in the double- to triple-digit megawatt range and are connected directly to grid nodes. Thus, they contribute to grid stabilization across the entire grid. This market for large-scale battery storage systems is still very young and extremely dynamic. Within a very short time, we have established Kyon Energy as one of the market leaders in Germany. In 2022 alone, we will be responsible for around 20 percent of the approximately 500 MW of storage capacity added across the entire market.
Munich Startup: What is your founding story?
Kyon Energy: From the very beginning, Kyon Energy's motivation was to drive the energy transition forward. We find it hard to understand why so little has been done in this area in recent years. Current political developments clearly demonstrate how important it is to be able to rely on a stable, independent, and cost-effective energy supply. Ultimately, this is also the reason why we founded Kyon.
The founding team behind Kyon Energy consists of energy industry expert Florian Antwerpen, as well as the two serial entrepreneurs Philipp Merk and Adrian Kapsalis. Before Kyon Energy, Philipp and Adrian had already founded the VC-backed startup Loewi founded and successfully sold.
“The most economical option to bring urgently needed flexibility to the grids in the short term”
Munich Startup: What have been your biggest challenges so far?
Kyon Energy: A major challenge lies in the regulation of the electricity market, which is currently not designed for the large expansion of renewable energies and storage. However, from today's perspective, battery storage is the most cost-effective option for bringing urgently needed flexibility to the grids in the short term. However, regulatory constraints make it very difficult for market players to offer this flexibility to local grids.
Munich Startup: Where would you like to be in one year, where in five years?
Kyon Energy: We're aiming for European expansion in the coming year. In five years, we'll be the European market leader in the development of large-scale battery storage systems, thus having a significant impact on the expansion and use of renewable energies.
Munich Startup: How have you experienced Munich as a startup location so far?
Kyon Energy: We are big fans of Munich's startup scene. There's hardly any other location in Europe where access to talent and capital is as leveraged as in Munich. Thanks to the top universities, the UnternehmerTUM, and initiatives such as Manage&More or CDTM, entrepreneurial thinking and action are often already a topic in the curriculum. This not only encourages new companies, but also helps existing startups find good people and creates a unique network. At the same time, there's hardly a city with a higher quality of life – the combination of startup culture, nature, and beer gardens is truly unique.
Munich Startup: Quick exit or long breath?
Kyon Energy: Staying power. It won't work any other way. In our opinion, building a sustainably functioning company is only possible with a long-term perspective.
