Total corporate funding (including venture capital funding, public market, and debt financing) for Energy Storage, Smart Grid, and Efficiency companies in 9M 2022 was up 66% year-over-year (YoY) with a record $25 billion compared to $15.1 billion raised in 9M 2021.
Investments continue to rise, with energy storage companies poised to play a vital role in the transition from fossil fuels to renewables.
In Q3 2022, VC funding for Energy Storage, Smart Grid, and Efficiency companies increased by 14%, with $2.8 billion in 35 deals compared to $2.4 billion in 36 deals in Q2 2022. Funding amounts were 16% lower YoY compared to the $3.3 billion raised in 35 deals in Q3 2021.
Energy Storage
In 9M 2022, a record $22 billion was raised in corporate funding in 92 deals, up 69% compared to the $13 billion raised in 74 deals in 9M 2021.
VC funding in Energy Storage companies in 9M 2022 fell by over 44%, with $4 billion in 73 deals compared to $7.2 billion in 60 deals in 9M 2021.
The Top VC funding deals in 9M 2022 were: Eolian, which raised $925 million; Group14 Technologies, which raised $400 million; Hydrostor, which raised $250 million; Sunfire, which raised $215 million; and Factorial Energy and Nexeon which secured $200 million each. A total of 218 VC investors participated in Energy Storage funding in 9M 2022.
Li-based Battery and Energy Storage System companies led the VC funding activity in Energy Storage in 9M 2022.
Announced debt and public market financing activity in 9M 2022 ($18 billion in 19 deals) increased 210% compared to 9M 2021 when $5.8 billion was raised in 14 deals. Funding raised in 9M 2022 was the highest in a year since 2014.
M&A transaction activity has picked up, with 23 Energy Storage M&A transactions recorded in 9M 2022, compared to 15 transactions in 9M 2021.
In the first nine months of 2022, there were 30 Energy Storage project acquisitions compared to 31 in 9M 2021.
Smart Grid
VC funding in Smart Grid companies in 9M 2022 was 162% higher, with a record $2.5 billion compared to the $936 million raised in 9M 2021.
In Q3 2022, VC funding for Smart Grid companies increased by 311%, with $1.7 billion in nine deals compared to $419 million in eight deals in Q2 2022. Funding was 264% higher YoY than the $473 million raised in eight deals in Q3 2021.
The Top 5 VC funding deals in 9M 2022 were: Terawatt Infrastructure, which raised $1 billion; Gridserve, which raised $243 million; Arcadia, which brought in $200 million; Sense, with $128 million; and FreeWire Technologies, which received $125 million.
Smart charging deals dominated the VC funding in 9M 2022.
Announced debt and public market financing for Smart Grid companies came to $307 million in four deals in 9M 2022 compared to $831 million in three deals in 9M 2021.
In 9M 2022, there were 18 Smart Grid M&A transactions (four disclosed) compared to 17 transactions (one disclosed) in 9M 2021.
Efficiency
VC funding for Energy Efficiency companies in 9M 2022 was up by $269 million compared to the $5 million raised in 9M 2021.
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