Economy

Funding into battery storage, smart grid, efficiency firms up at $10.4 billion in H1 2021

Our Bureau Hyderabad | Updated on July 22, 2021

Investments continue to rise as battery storage cos are poised to play a vital role in the transition from fossil fuels to renewables: Mercom Capital

Total corporate funding in the battery storage, smart grid and efficiency companies in first half (H1) 2021 was up exponentially year-over-year at $10.4 billion compared to $1.5 billion raised in the Covid hit first half of 2020.

Global VC funding (venture capital, private equity, and corporate venture capital) for battery storage, smart grid, and efficiency companies was up 468 per cent higher in H1, 2021 with $4.9 billion compared to $858 million in 1H 2020. Investments continue to rise as battery storage companies are poised to play a vital role in the transition from fossil fuels to renewables, according to a report by Mercom Capital Group.

In Q2 2021, VC funding in these three areas increased with $3.6 billion in 28 deals compared to $1.3 billion in 24 deals in Q121. Funding amounts were 493 per cent higher Y-o-Y compared to the $605 million raised in 26 deals in Q2 2020. The increase in funding activity was primarily due to a multi-billion dollar deal in the battery storage sector this quarter.

In first half of 2021, $9.6 billion was raised in corporate funding in battery storage from 41 deals compared to the $716 million raised in 19 deals in 1H 2020.

VC funding in battery storage companies in H1 was up significantly with $4.4 billion in 33 deals compared to $536 million in 14 deals in 1H 2020.

Also read: Battery storage, smart grid, efficiency firms raise $3.2 billion in Q3 2020: Mercom Capital Group

Announced debt and public market financing activity in the first half of 2021 ($5.2 billion in eight deals) spiked compared to the first half of 2020, when $180 million was raised in five deals.

VC funding in smart grid companies in H1 was 68 per cent higher with $463 million compared to the $275 million raised in 1H 2020. Announced debt and public market financing for smart grid companies came to $8 million in one deal in 1H 2021 compared to $10 million in three deals in 1H 2020.

VC funding for energy efficiency companies in H1 2021 was 89 per cent lower with $5 million compared to the $47 million raised in 1H 2020.

Published on July 22, 2021

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