Corporate Funding for Energy Storage Firms Up 69% YoY to $22 Billion in 9M 2022

VC funding for energy storage, smart grid, and energy efficiency companies up by 14% to $2.8 billion

thumbnail

Global corporate funding for energy storage, smart grid, and energy efficiency companies in the first nine months (9M) of 2022 increased to $25 billion compared to $15.1 billion raised in 9M 2021, a 66% increase year-over-year (YoY), according to Mercom’s 9M and Q3 2022 Funding and M&A Report for Storage, Grid, and Efficiency.

Energy StorageTotal venture capital (VC) funding for energy storage, smart grid, and energy efficiency companies increased by 14% to $2.8 billion in 35 deals in Q3 2022 compared to $2.4 billion raised in 36 deals in Q2 2022. The numbers were 16% lower than the $3.3 billion raised in 35 deals during Q3 2021.

TableEnergy Storage

As per the report, corporate funding for energy storage companies in 9M 2022 increased by 69%, with $22 billion raised in 92 deals compared to $13 billion raised in 74 deals in 9M 2021.

VC funding for energy storage companies fell by 44% to $4 billion in 73 deals compared to $7.2 billion in 60 deals during the same period last year.

The top VC funding deals in 9M 2022 included Eolian, which raised $925 million; Group 14 Technologies, which raised $400 million; Hydrostor, which raised $250 million; Sunfire, which raised $215 million; and Factorial Energy and Nexeon, which raised $200 million each.

A total of 217 VC investors participated in energy storage funding in 9M 2022.

Energy Storage Funding

The announced debt and public market financing activity in 9M 2022 increased by 210% and stood at $18 billion in 19 deals compared to $5.8 billion in 14 deals during the corresponding period last year. The funding raised in 9M 2022 was the highest in a year since 2014.

The first nine months also saw a growth in M&A transactions, with 23 energy storage M&A transactions recorded, compared to 15 transactions in 9M 2021.

There were 30 energy storage project acquisitions in 9M 2022 compared to 31 during the same period last year.

Smart Grid 

The report states that VC funding in the smart grid in 9M 2022 increased by a massive 162% YoY, with a record $2.5 billion compared to $936 million raised in 9M 2021.

In Q3 2022, VC funding for smart grid stood at $1.7 billion in nine deals, an increase of 311% compared to $419 million in eight deals in Q2 2022.

Some of the top VC funding deals for smart grid companies in 9M 2022 included $1 billion raised by Terawatt Infrastructure; $243 million raised by Gridserve; $200 million raised by Arcadia; $128 million raised by Sense; and $40 million raised by GridX.

A total of 93 VC investors participated in smart grid funding in 9M 2022.

The announced debt and public market financing activity for smart grid companies stood at $307 million in four deals in 9M 2022, compared to $831 million in three deals in 9M 2021.

In the first nine months of 2022, there were 18 M&A transactions compared to 17 during the same period last year.

Efficiency

VC funding for energy efficiency companies in 9M 2022 stood at $269 million compared to $5 million in 9M 2021.

A total of 30 VC investors participated in energy efficiency funding in 9M 2022.

To get a copy of the report, please visit: https://mercomcapital.com/product/9m-q3-2022-funding-ma-report-for-storage-grid-efficiency/.

thumbnail

Rakesh Ranjan

RELATED POSTS

Mercom Research Focus
thumbnail
India Installs a Record 2.5 GW of Solar Open Access in 2022, Up 92% YoY

India added 2.5 GW of solar open access in the calendar year (CY) 2022, a year-over-year (YoY) increase of 92% from the 1.3 GW installed in CY 2021, according to the newly released 2022 Q4 & Annual Mercom India Solar Open Acce...

March 15, 2023

Solar

Kerala Issues Empanelment Tender for 100 MW of Solar Projects

The Kerala State Electricity Board (KSEB) has invited bids to empanel solar developers to set up 100 MW of grid-connected rooftop and ground-mounted projects. Empanelled vendors also must furnish operation and maintenance (O&M...

March 20, 2023

Tenders and Auctions

Gujarat Invites Bids to Procure 500 MW of Wind Power with Greenshoe Option

Gujarat Urja Vikas Nigam (GUVNL) has invited bids to procure power from 500 MW of grid-connected wind projects (Phase V) with a greenshoe option of an additional capacity of up to 500 MW. The last day to submit the bids online is ...

March 17, 2023

Rooftop

MSMEs Adopt Solar Readily If Savings on Power Bills Cover EMI Cost: Interview

Small businesses are open to adopting rooftop solar if loan repayment is not an additional burden and is equal to their savings on electricity bills. Entities in the commercial and industrial (C&I) segment are increasingly mov...

March 17, 2023

Magazine

DON'T MISS AN ISSUE!

Mercom Cleantech Magazine

Get Your Copy Today!

magazines

Latest News

thumbnail
Maharashtra Approves Tariffs for 8.7 MW of Solar Power Under KUSUM Program

The Maharashtra Electricity Regulatory Commission (MERC) has adopted tariffs of ₹3.28 (~$0.039)/kWh, ₹3.29 (~$0.039)/kWh, and ₹3.30 (~$0.040)/kWh for the procurement of 8.7 MW of solar power on a long-term basis. The Commission...

March 21, 2023

thumbnail
Brookfield to Aquire KKR’s 50% Stake in Renewable Developer X-Elio

Global investment firm Kohlberg Kravis Roberts (KKR) has agreed to sell 50% of its stake in renewable developer X-ELIO to its joint venture partner Brookfield Renewable. Financial details were not disclosed. Since KKR’s...

March 21, 2023

thumbnail
NTPC’s Subsidiary Will Develop Renewable Projects for IndianOil Refineries

NTPC Limited’s wholly owned subsidiary, NGEL, has entered into a joint venture agreement with Indian Oil Corporation (IOCL) to develop renewable energy projects that can meet round-the-clock power requirements to meet the...

March 21, 2023

thumbnail
Constant Climate-Centric Funding Can Limit Global Temperature Under 1.5°C 

Financial support from developed economies to developing nations which is a critical enabler of climate action has been inadequate, said scientists in the latest Intergovernmental Panel on Climate Change (IPCC) report...

March 21, 2023

thumbnail
India Voices Concern over Europe’s Carbon Tariff Measure at WTO

India has expressed concern about the carbon border measures proposed by the European Union (EU) at a recent meeting of the World Trade Organization’s (WTO) Committee on Trade and Environment. Presenting a paper on the increasing...

March 21, 2023

thumbnail
JSW and Greenko Win Karnataka’s Bid for 1 GW of Pumped Storage Projects

JSW Neo Energy (JSW Energy) and Greenko KA 01 IREP (Greenko) have won the Power Company of Karnataka’s (PCKL) auction to supply 1 GW of energy for 8 hours daily from pumped hydro storage projects providing continuous 5-hour...

March 21, 2023

thumbnail
Sterling and Wilson Bags BoS Package Tender for 1.2 GW Solar Projects

Sterling and Wilson Renewable Energy, the solar engineering, procurement, and construction (EPC) arm of Shapoorji Pallonji Group, won NTPC’s tender for the balance of system (BOS) package to develop 1.2 GW (4*300 MW) of solar...

March 21, 2023

thumbnail
Indian Oil Floats O&M Tender for 8 MW Solar Project in Ahmedabad

Indian Oil Corporation (IOCL) has invited bids for the operation and maintenance (O&M) of an existing 8 MW solar power project at the LPG bottling plant at Sanand in Ahmedabad for five years. The last date to submit the bids...

March 21, 2023

thumbnail
IIT Mandi Creates Low-Cost Method for Solar Cell Metal Oxide Layers

Researchers at the Indian Institute of Technology Mandi (IIT Mandi) have claimed a breakthrough in producing metal oxide layers for use in advanced architecture silicon solar cells using a cost-effective method. This innovative...

March 21, 2023

thumbnail
Government Allows NTPC to Invest Over 30% of Net Worth in its Green Arm

The government has allowed NTPC to invest in its subsidiary, NTPC Green Energy (NGEL), beyond the limit allowed for a ‘maharatna’ central public sector enterprise (CPSE). The extant guidelines prescribe a ceiling of 30% of a...

March 21, 2023

MORE NEWS