Asia, Energy Efficiency, Energy Storage, EV Infrastructure, Internet of Things, Middle East & Africa, North America, Smart Grid

Battery storage, smart grid and energy efficiency investment tops $1bn

Investment in the battery energy storage, smart grid and energy efficiency sectors has topped $1bn in the first nine months of this year, new analysis has found.

In its quarterly global funding and M&A report for the three sectors, released this week, clean energy consultancy Mercom Capital found that the $1.23bn raised by battery storage, smart grid and energy efficiency firms this year beat the $910m raised in the first nine months of 2016.

Battery energy storage companies raised $563m in 25 venture capital (VC) funding deals during the analysis period, a significant increase on the $209m raised in 29 deals last year. The top fundraiser was US-based Advanced Microgrid Solutions, which raised $34m.

In Q3 2017, funding for battery energy storage was spread across seven sub-technology categories: energy storage downstream, energy storage systems, lead-based batteries, lithium-based batteries, energy storage management software, thermal energy storage and zinc-air batteries.

Smart grid firms raised $380m in 36 VC funding deals, slightly up on the $343m raised in the same number of deals last year. The top-funded company was Californian internet-of-things outfit Particle, which won $20m.

In Q3 2017, VC funding for the smart grid sector was spread across six technologies: smart grid communications, data analytics, smart charging of PHEV and V2G, advanced meter infrastructure, grid optimization and demand response.

The energy efficiency sector was the only one to show a drop in funding, with $289m raised in 28 deals this year compared to $358m from the same number of deals in 2016. The top funding winner was Canada’s Power Survey and Equipment, which bagged $24m.

Funding for energy efficiency firms was spread across four sub-technologies: components, lighting, energy monitoring/dashboard, and developers/installers.

US-based companies predominated in all sectors, although notable were the UAE’s Interel, which bagged the number-two slot in the smart grid category, raising $12m for its ‘hotel of things’ IoT solution; Australian electric vehicle charging station firm Tritium, which raised $8m; and Indian LED lighting firm Corvi, which raised $10m in the energy efficiency category.