DCVC proud to back ElectronX in its quest to build the first-ever direct-access regulated derivatives exchange for the electric power markets

It is undeniably good news that wind and solar are now leading the growth of electric power generation in the United States, but integrating more and more electricity from these clean but inter­mit­tent energy sources into our grids greatly increases volatility in the electricity markets. Producers and buyers in high-population areas with significant renewable resources, like California and Texas, can see huge swings in the price of power over the course of a day, with the price often going negative when wind or solar farms generate more electricity than can be consumed. 

Without more stability and liquidity in these markets, our ability to add more zero-carbon energy sources could stagnate. Enter the ElectronX exchange. With its $15 million Seed round announced today in the Wall Street Journal, ElectronX will continue developing its clear­ing­house and exchange for trading power futures and other derivatives in near real-time. Once it wins regulatory approval, the platform will provide a lifeline to power producers and buyers big and small looking to precisely manage their risk, as well as a point of access to traders who see oppor­tu­ni­ties in the ups and downs.

To augment a leadership team deep in expertise in both power markets and derivatives trading, ElectronX also announced new regulatory board members and corporate advisors. There are, of course, sophis­ti­cated technical and financial consid­er­a­tions involved in building an exchange that’s accessible, responsive, and reliable, but the payoff will be immense.

DCVC is investing in the future of energy, from elec­tri­fi­ca­tion to grid management and opti­miza­tion to next-generation energy sources that can deliver carbon-free electricity ²⁴⁄₇, such as Fervo Energy​’s enhanced geothermal plants and Oklo​’s next-generation fast reactors. We’re also backing Fourth Power, whose break­through energy storage solution can econom­i­cally store excess renewable electricity for a long time and release it back to the grid when needed. Now with ElectronX’s platform helping to smooth out volatility in the power market, we can further push the limits of how much wind and solar can contribute to the overall energy mix. ElectronX represents a crucial piece of the puzzle in decar­bonizing the grid.