Here are the highlights from Mercom Capital Group’s report on funding and merger and acquisition (M&A) activity in the Energy Storage and Smart Grid sectors for Q3 and the first nine months of 2024:
Energy Storage
Corporate Funding Growth: Energy Storage companies secured $17.6 billion in corporate funding across 83 deals in the first nine months of 2024, marking a 15 percent increase from $15.2 billion in 94 deals during the same period in 2023.
Venture Capital Decline: Venture capital funding for Energy Storage companies plummeted by 69 percent year-over-year, totaling $2.7 billion in 61 deals compared to $8.6 billion in 68 deals in 2023.
Top Funded Categories: Lithium-based battery companies led VC funding with $778 million, followed by Battery Recycling, Metal-Hydrogen Batteries, Sodium-based Batteries, and Materials and Components providers.
Major VC Deals: The top five VC funding deals included:
Sila Nanotechnologies: $375 million
EnerVenue Holdings: $308 million
Natron Energy: $189 million
Ascend Elements: $162 million
Antora Energy: $150 million
Debt and Public Financing Surge: Announced debt and public market financing for Energy Storage reached $15 billion in 22 deals, a 125 percent increase from $6.6 billion in 26 deals in 2023.
M&A Activity: A total of 18 Energy Storage M&A transactions were announced in the first nine months of 2024, up from 11 transactions in the same period in 2023. Project M&A transactions remained stable at 22 in both years.
Smart Grid
Overall Funding Decline: Smart Grid companies raised $2 billion in corporate funding through 53 deals in 2024, a 33 percent decrease from $3 billion in 48 deals in 2023.
Venture Capital Increase: VC funding in Smart Grid totaled $1.4 billion across 43 deals, representing a 13 percent increase from $1.2 billion in 37 deals in 2023.
Leading Smart Grid VC Deals: The top five VC funding deals in the Smart Grid sector included:
Electra: $330 million
Powerdot: $108 million
FLO: $100 million
Monta: $87 million
Battery Smart: $65 million
Debt and Public Market Financing Drop: Announced debt and public market financing for Smart Grid technology companies totaled $568 million in 10 deals, down from $1.7 billion in 11 deals in 2023.
M&A Activity: There were seven Smart Grid M&A transactions in 2024, slightly down from eight in 2023.
These findings highlight the trends in funding and M&A activities within the Energy Storage and Smart Grid sectors, reflecting the evolving landscape of clean energy markets.