Schneider Electric (Kim Kyung-rok, Head of the Korean branch) is expanding its portfolio of digital renewable energy and resource management solutions through the acquisition of Zygo.

Schneider announced on the 23rd that it has acquired Zeigo, a climate-tech platform startup, to strengthen the company's digital capabilities in the fields of energy, sustainability, and environmental raw materials consulting.

Zeigo uses advanced analytics, including data and machine learning algorithms, to establish and execute renewable energy project networks and business objectives across Europe. This acquisition not only complements Schneider Electric's clean energy services and solutions portfolio but also drives energy innovation through the use of digital technology.

Companies are facing increasing pressure to decarbonize as global movements toward the climate crisis and a just energy transition accelerate. Power Purchase Agreements (PPAs) have been one of the common and effective means for companies to initiate decarbonization over the past decade. To date, organizations have voluntarily purchased over 77 gigawatts of wind, solar, and geothermal energy through PPAs.

As the global demand for zero carbon accelerates, the demand for PPAs is expected to increase. More than 2,000 companies have already joined the Science Based Targets initiative (SBTi) to help set and verify corporate greenhouse gas emission reduction targets in order to implement the Paris Climate Agreement, which aims to limit the global average temperature rise to 1.5°C. Additionally, more than 300 companies have joined RE100, operated by the Climate Group, and pledged to transition their operational energy to 100% renewable energy.

When considering the commitments of these companies, Bloomberg New Energy Finance (BNEF) predicted that there will be a corporate renewable energy shortfall of 269 terawatt-hours by 2030.

Renewable energy procurement is time-consuming and complex, requires satisfying stakeholders including corporate boards, and necessitates substantial expert evaluation of projects and risks. Schneider Electric plans to deploy enhanced collaborative intelligence in energy and environmental product procurement processes by combining Zeigo's AI capabilities with existing best-in-class advisory services, complementing the existing Schneider Electric EcoStruxure™ Resource Advisor and NEO Network™ solutions for integration and digital platforms.

Steve Wilhite, Head of Sustainability at Schneider Electric, stated, “As the world’s largest corporate advisor on renewable energy procurement, Schneider Electric realized that speed and complexity are significant barriers for companies in the PPA market. Through this acquisition, Schneider Electric will add Zeigo’s technology and team to its existing portfolio of services and solutions to deliver even greater value to customers worldwide.”

"Zygo Founder and CEO Juan Pablo Cerda said, 'Zygo is pleased to join forces with Schneider Electric to accelerate the digital clean energy revolution. Together, we will provide innovative energy solutions to influence the decarbonization of many more companies.'"