Battery storage startup Base Power announced that it has raised $200 million in Series B funding round to scale its distributed energy storage solution aimed at addressing grid instability challenges and higher energy cost issues from increasing electrification.

Energy storage forms one of the key building blocks for the rapidly expanding clean energy transition, given the intermittent generating nature of many sources of renewable energy, such as wind and solar, and the need to satisfy round-the-clock energy demand, while ensuring that energy is not wasted, particularly as demand on the grid grows from areas such as transport electrification and AI computing.

Founded last year by CEO Zach Dell and COO Justin Lopas, Texas-based Base Power provides solutions to reinforce the electricity grid using distributed energy storage. The company offers a home energy service powered by distributed batteries, enabling users to utilize the batteries during outages, while supporting the grid during times of peak need. Grid operators pay Base Power for the power they receive from the batteries, and these payments are then passed onto Base Power customers, helping offset power bills.

According to Base Power, the new capital will support initiatives by the company including investing in new products to enhance its distributed storage platform, scale production to meet growing demand, expand utility partnerships in Texas and opportunities outside of the state, and to build its team.

The financing round was led by Addition, Andreessen Horowitz, Lightspeed, and Valor Equity Partners, with support from Thrive Capital, Altimeter, Trust Ventures, and Terrain.

In a post announcing the new financing, Base Power Co-founder and CEO Zach Dell said:

“The urgency of solving grid instability and rising energy costs has never been higher. The grid’s stretched thin. New demand from the electrification of transportation and AI compute is coming online fast. While low-cost renewables are a vital part of the solution, their intermittency creates problems that are amplified by aging infrastructure.

“Distributed storage is the unlock – a responsive, real-time solution that balances supply and demand and provides the capacity we need to scale our existing infrastructure to meet the incredible demand for electricity that is coming. Distributed energy is the key to a future of American energy abundance.”