Global corporate funding for Battery Storage, Smart Grid, and Energy Efficiency companies in the first quarter (Q1) of 2022 stood at $13.3 billion, according to Mercom’s Q1 2022 Funding and M&A Report for Storage, Grid and Efficiency. This was a 166% year-over-year (YoY) increase compared to $5 billion raised in Q1 2021.

Total venture capital (VC) funding for Battery Storage, Smart Grid, and Energy Efficiency companies in Q1 2022 stood at $1.6 billion. This was a 21% YoY increase compared to $1.3 billion raised in Q1 2021.

Battery Storage

Battery Storage companies raised $12.9 billion in corporate funding through 26 deals in Q1 2022, a 222% quarter-on-quarter (QoQ) increase compared to $4 billion raised in 27 deals in the last quarter. This was a 174% YoY increase compared to the $4.7 billion raised in 18 deals during the same period last year.

In Q1 2022, global VC funding in Battery Storage companies stood at $1.1 billion in 21 deals, a 15% increase compared to $1 billion raised through 14 deals in Q1 2021. In a QoQ comparison, this is a 28% fall compared to $1.6 billion raised through 21 deals in Q4 2021. Canada-based long-duration energy storage solutions provider, Hydrostor’s $250 million funding from Goldman Sachs Asset Management was the biggest deal this quarter.

Some of the other top VC funding deals in Q1 2022 included $215 million raised by Sunfire, $200 million by Factorial Energy, $95 million by Viridi Parente, and $65 million by Our Next Energy (ONE).

A total of 27 VC investors participated in Battery Storage funding during the quarter.

The report stated that in Q1 2022, the announced debt and public financing market activity escalated to $11.7 billion in 14 deals, a 216% increase compared to $3.7 billion raised through four deals in Q1 2021. In a QoQ comparison, this is an increase of 388% compared to $2.4 billion raised through six deals in Q4 2021.

In Q1 2022, the sector witnessed five Battery Storage companies’ merger and acquisition (M&A) transactions compared to four transactions in the same period last year.

There were 13 Battery Storage project M&A transactions in Q1 2022, compared to nine in Q4 2021.

Smart Grid

Total corporate funding in the Smart Grid segment was $316 million through 14 deals, a YoY increase of 7% compared to $295 million in 11 deals in Q1 2021.

Smart Grid companies raised $312 million in VC funding through 12 deals in Q1 2022, a 9% growth compared to $287 million raised through 10 deals during the same period last year. Digital electricity supplier Tibber’s $100 million funding from Summa Equity Fund III was the biggest deal in the quarter.

Some of the other top VC funding deals in Q1 2022 include $90 million raised by SPAN, $27 million raised by Utilidata, $21 million raised by David Energy, and $18 million raised by JET Charge.

The report stated that the announced debt and public financing market activity in Q1 2022 plummeted to $4 million in three deals, a 99% decrease compared to $484 million raised through a public market financing deal in the last quarter. In a YoY comparison, this is a fall of 50% compared to $8 million raised through one public market financing deal in Q1 2021.

A total of 39 VC investors participated in Smart Grid funding in Q1 2022.

There were three M&A transactions in Q1 2022, compared to two M&A transactions in the last quarter.

Efficiency

In Q1 2022, VC funding for Energy Efficiency companies stood at $109 million raised through four deals, a QoQ decrease of 7% compared to $118 million raised through four deals in Q4 2021.

As per the report, the corporate funding for Energy Efficiency companies also declined 7% to $109 million compared to $118 million raised in Q4 2021.

A total of 13 investors participated in energy efficiency funding in Q1 2022. There were no M&A transactions involving Energy Efficiency companies during the quarter.