Morgan Stanely backs Amber in €49m funding round

Morgan Stanley Investment Management's 1GT private climate equity strategy has led a €49 Million (A$79 million) Series E funding round for Australian energy technology company Amber Electric, backing the Melbourne-founded business as it expands its energy flexibility platform into Europe.

The investment follows Ambers recent partnership with E.ON, one of the UK's largest energy suppliers, which also participated in the funding round.

Founded in Melbourne in 2017 BY Chris Thompson and Dan Adams, Amber operates as an energy retailer in Australia and provides technology that enables households to optimise the use and storage of energy.

The company's distributed energy resources platform gives households access to wholesale energy pricing through real-time optimisation of batteries and generational assets. Its SmartShift technology uses AI-driven forecasts of wholesale electricity prices, household solar generation and consumption to automate energy decisions.

Amber said it has more than 50% market share of automated batteries in Australia, making it the country's largest battery automation provider.

Morgan Stanely Investment head of climate private equity investing and 1GT Vikram Raju said energy flexibility would become increasingly important as electricity systems become more decentralised.

"We believe Amber will play a consequential role in enabling the energy transition in Australia, Europe and beyond," Raju said.

"As power systems become increasingly decentralised, energy flexibility and household-level engagement are essential to integrating renewable energy at scale."

The funding will provide growth capital and strategic support as Amber expands internationally, including through partnerships with utilities.

Amber co-founder Chris Thompson said the investment would support the company's international expansion while allowing it to build on its Australian operations.

"We've built a leading energy automation platform in Australia, and this investment gives us the backing to build on that leadership globally," Thompson said.

Amber's technology enables households to optimise rooftop solar, batteries and electric vehicles, while accessing wholesale energy markets and selling excess renewable generation.

The company said the platform is designed to improve grid efficiency, support renewable energy integration and reduce reliance on fossil fuel generation as distributed energy resources become more prevalent.