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The total corporate funding for energy storage, smart grid and efficiency companies during January-September 2022 (9M) went up by 66 per cent year-over-year (y-o-y) to $25 billion compared to $15.1 billion raised in the same period last year, according to a report by Mercom Capital Group.
However, global venture capital (VC) funding for energy storage, smart grid, and efficiency companies during January-September 2022 dropped by 17 per cent to $6.7 billion as compared with $8.2 billion in 9M 2021.
Energy storage
In 9M 2022, corporate funding in energy storage saw an increase of 69 per cent to $22 billion in 92 deals, compared with $13 billion raised in 74 deals in 9M–2021. However, VC funding in energy storage companies dropped by 44 per cent to $4 billion in 73 deals compared to $7.2 billion in 60 deals in 9M 2021.
The top VC funding deals were: Eolian–$925 million; Group14 Technologies–$400 million; Hydrostor–$250 million; Sunfire–$215 million; and Factorial Energy and Nexeon–$200 million each. A total of 218 VC investors participated in energy storage funding in 9M 2022.
During the 9M 2022, Li-based battery and energy storage system companies led the VC funding activity in energy storage. There were 23 energy storage mergers and acquisitions (M&A) transactions recorded in 9M 2022, compared to 15 transactions in 9M 2021.
Smart Grid
During Jan-Sept 2022, VC funding for smart grid companies increased by 162 per cent to $2.5 billion compared to $936 million raised in 9M 2021. Smart charging deals dominated VC funding. The top five VC funding deals were: Terawatt Infrastructure - $1 billion; Gridserve- $243 million; Arcadia- $200 million; Sense- $128 million; and FreeWire Technologies- $125 million.
In 9M 2022, there were 18 smart grid M&A transactions (four disclosed) compared to 17 transactions (one disclosed) in 9M 2021. Further, in the case of energy efficiency companies, $269 million VC funding was raised as compared to the $5 million raised in 9M 2021.
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