Global VC funding (venture capital, private equity, and corporate venture capital) for battery storage, smart grid, and efficiency companies in the first nine months (9M) of 2019 was 54% higher with over $2 billion compared to the $1.3 billion raised during the same period in 2018 according to a newly released report from Mercom Capital Group
However, the total corporate funding (including venture capital funding, public market, and debt financing) went down to $2.7 billion, compared to $3.3 billion in 9M 2018.
The rapidly growing energy storage industry is gaining momentum globally.
VC funding for Battery Storage companies in 9M 2019 was up 104% with $1.6 billion in 25 deals compared to the $783 million in 38 deals in 9M 2018. The increase was primarily due to Northvolt’s $1 billion funding round in Q2 2019.
The top five notable VC funding deals in 9M 2019 were: Northvolt raising $1 billion, Sila Nanotechnologies raising $170 million, Energy Vault at $110 million, Romeo Power secured $89 million, and Form Energy raised $40 million.
A total of 60 VC investors participated in Battery Storage funding in 9M 2019, according to the report.
Announced debt and public market financing activity in the first nine months of 2019 ($560 million in seven deals) was 24% higher compared to the first nine months of 2018 when $450 million was raised in nine deals.
There was a total of 10 (two disclosed) Battery Storage M&A transactions both in 9M 2019 and 9M 2018 each.
In the first nine months of 2019, there were eight project M&A transactions (two disclosed) compared to seven undisclosed transactions in 9M 2018.
VC funding in smart grid companies in 9M 2019 was 27% lower with $194 million compared to $264 million in 9M 2018.
The top five VC funding deals in 9M 2019: eSmart Systems raised $34 million, SmartRent raised $32 million, CleanSpark raised $20 million, Volta Charging raised $20 million, and Innowatts received $18 million. A total of 63 VC investors participated in smart grid funding in 9M 2019.
Announced debt and public market financing for smart grid companies came to $45 million in two deals in 9M 2019 compared to $1.3 billion in three deals in 9M 2018.
In 9M 2019, there were a total of 23 smart grid M&A transactions (one disclosed), compared to nine deals (all undisclosed) in 9M 2018.
VC funding for energy efficiency companies in 9M 2019 was flat with $268 million compared to the $265 million raised in 9M 2018.
The top five VC funding deals in 9M 2019 were: Kinestral Technologies raised $100 million, Budderfly raised $55 million, Cimcon Lighting raised $33 million, Carbon Lighthouse secured $33 million, and 75F received $18 million. A total of 33 VC investors participated in Energy Efficiency funding in 9M 2019.
Announced debt and public market financing activity in the first nine months of 2019 ($56 million in two deals) was 74% lower compared to 9M 2018 when $212 million went into two deals.
In 9M 2019, there were a total of nine efficiency M&A transactions (two disclosed), compared to three transactions (all undisclosed) in 9M 2018.
Energy storage is one of the most crucial components missing in India’s energy infrastructure strategy and is critical in sustaining India’s transformation from fossil fuels to renewables. Key areas for energy storage applications include integrating renewable energy with distribution and transmission grids, setting rural micro-grids with diversified loads or standalone systems, and developing the storage component of electric mobility plans.
India is working toward a National Energy Storage Mission (NESM) to set targets and policy direction going forward. As energy storage projects are almost negligible in India, efforts have been made to tender and auction solar and wind projects along with battery energy storage in the country.
In December 2018, Union Power Minister R.K. Singh had announced that under the Ministry of New and Renewable Energy (MNRE)’s research and development program, during the last four years, projects worth ₹115.8 million (~$1.66 million) in the area of energy storage have been sanctioned and a corpus of ₹48.2 million (~$0.7 million) has been released.
According to International Renewable Energy Agency (IRENA), with the growing demand for electricity storage from stationary and mobile applications, the total stock of electricity storage capacity could grow from an estimated 4.67 TWh in 2017 to 12-15 TWh by 2030 globally.
In a recent interview with Mercom, Vikram Iyengar, President, CTO, and co-founder of Yotta, discussed the market potential for innovative technologies in the rapidly changing energy storage market. Read the full interview here.
Image credit: UniEnergy Technologies [CC BY-SA 4.0]
Ankita is an editor at MercomIndia.com where she writes and edits clean energy news stories and features. With years of experience in the news business, Ankita has a nose for news and an eye for detail. Prior to Mercom, Ankita was associated with The Times of India as a copy editor for the organization’s digital news desk. She holds a Bachelor’s degree in Psychology from Delhi University and a Postgraduate Diploma in journalism. More articles from Ankita Rajeshwari.