Battery storage, smartgrid, and energy efficiency companies raised $2.3 billion in 2019

KOLKATA: Funds raised by battery storage, smart grid, and energy efficiency companies, globally, touched $ 2.3 billion in 2019 – an 18% decrease against 2018, Mercom Capital Group has estimated.

In the battery storage sector, in 2019, venture capital funding more than doubled to $ 1.7 billion in 32 deals compared to $ 850 million raised in 49 deals in 2018. Total corporate funding, including debt and public market financing, increased to $ 2.8 billion in 2019 compared to $ 1.3 billion in 2018.

Lithium-ion based battery technology companies received the highest funding in 2019 with $ 1.4 billion. Other categories that received funding included gravity storage, flow batteries, CAES, energy storage downstream, fuel cells, liquid metal batteries, thermal energy storage, solid-state batteries, sodium-based batteries, and zinc-air batteries.

There were 10 M&A transactions in the battery storage category in 2019, of which only two disclosed transaction amounts. In 2018, there were 16 M&A transactions, three of which disclosed transaction amounts.

Smart grid companies raised $ 300 million in venture capital funding in 38 deals in 2019, a 43% decrease compared to the $ 530 million raised in 29 deals in 2018. Total corporate funding, including debt and public market financing, came to $ 372 million in 41 deals, compared to $ 1.8 billion in 33 deals in 2018.

Grid optimization companies had the largest share of VC funding in 2019 with $ 85 million in four deals, followed by Data Analytics companies with $ 58 million in six deals and Smart Grid Communications companies with $ 52 million in five deals.

VC funding for energy efficiency companies fell sharply with $ 298 million in nine deals in 2019 compared to $ 1.5 billion in 23 deals in 2018, an 80% decrease. Total corporate funding, including debt and public market financing, reached more than $ 670 million in 2019 compared to $ 1.7 billion in 2018.

M&A activity for efficiency companies in 2019 increased with nine transactions, two of which disclosed the transaction amount. In 2018, there were seven M&A transactions with one that disclosed the transaction amount.

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