On January 19, 2021, CEE Legal Matters reported that Bondoc si Asociatii had advised independent electricity and gas supplier Restart Energy on its cooperation agreement with DC-based consulting and fund management company Interlink Capital Strategies to develop green energy projects worth USD 500 million in Romania and neighboring countries and to launch the blockchain-based RED platform in the USA. CEEIHM spoke with Armand Domuta, Chairman of the board at Restart Energy, to learn more about the agreement.
CEEIHM: To start, please introduce Restart Energy, its history, and mission.
Armand: Restart Energy is an independent electricity and natural gas supplier for homes and companies, with 100% Romanian capital, established in 2015 in Timisoara, Romania.
Restart Energy has over 30,000 household customers and approximately 5,000 corporate customers. The company is present in the Romanian and Serbian markets and, starting with 2021, intends to develop in several European markets, including Germany and Spain.
Our Vision: We envision a vibrant, sustainable world, where affordable energy is created and consumed by anyone, anywhere.
Our Mission: To fund, research, and develop the systems necessary to make energy universally accessible and useful.
Responsibility: Sustainability is our north star as we expand and innovate our company into the future.
Powering homes and businesses with 1,000 GWh of Renewable Energy and 500 GWh of Natural Gas Supply. Restart Energy has leveraged its renewable energy production assets to provide cleaner energy alternatives to coal for thousands of consumers. Our forward business strategy involves the purchase of additional MWh of renewable energy production assets to provide a healthy supply side for the RED Platform. As a result, we expect this upstream integration of production assets to bring major advantages in cash flow optimization and production flow stability for our users.
Helping businesses and entrepreneurs earn from energy and start their own supply business. A big part of the company's success to date has been based on its ability to successfully develop a multi-channel sales strategy by quickly identifying market opportunities and leveraging local resources, such as micro-entrepreneurs, through the first retail energy franchise in the European Union.
Giving consumers access to cheaper energy directly from renewable energy producers on the first retail P2P energy marketplace. At Restart Energy, we are firm believers in democratizing access and production of renewable energy through technologies to facilitate what Omnitric aptly refers to as Community Energy or citizen utilities. By reducing the bureaucratic and economic transaction costs of the retail energy business, we can empower households and businesses to become self-sustaining energy prosumers within their communities.
CEEIHM: As reported by CEE Legal Matters, Restart Energy recently concluded a cooperation agreement with Interlink Capital Strategies. How will that cooperation look like in practice?
Armand: Our partnership with Interlink has two main facets, one is related to the launch and operation of the RED platform in the US which will be operated through our US subsidiary where we took Interlink as partners in the company. The other facet, equally important, is the one where they will help structure finance solutions for our investment plans in Romania and the region.
CEEIHM: The end goal of the agreement is to "develop green energy projects worth USD 500 million in Romania and neighboring countries" and launch our innovative blockchain-based platform, RED in the US market we set-up a subsidiary in partnership with ICS. Can you share a few details as to what these projects will consist of?
Armand: We are targeting the acquisition of operational and ready-to-build projects that we will integrate into our existing downstream business through financing arrangements made in partnership with Interlink Capital Strategies (ICS).
CEEIHM: Another end-goal of the agreement is the launch of a blockchain-based RED platform in the USA. What is this platform's mission and how does it work?
Armand: The end goal of the RED platform is to support faster renewable energy development. Firstly, we try to give renewable energy producers a way to have a more significant impact on the power generation market. We are doing this by offering them a simpler, more cost-effective, and direct way to reach the end customer through a p2p system and also by offering them an incentive in the form of green tokens that they can sell. Second, we are trying to incentivize also the consumer by offering a similar system, and giving them a reward in the form of tokens for every CO2 kg they offset by having a responsible consumption of energy and responsible behavior towards our planet.
CEEIHM: What were the specific aspects that Bondoc si Asociatii advised on and why did you opt to turn to them for support on this agreement?
Armand: Bondoc si Asociatii assisted us successfully on a number of operations both domestic and international. They have vast experience in trans-border transactions, so it was only natural that we’d ask them to assist us as well on this strategic project for us. They helped us structure and prepare the agreement with ICS and also provided valuable input in setting up the RED USA subsidiary.
Originally reported by CEE In-House Matters.