Click here to download our 1H and Q2 2023 Funding and M&A Executive Summary on Energy Storage and Smart Grid.

Energy Storage

Corporate funding in Energy Storage bounced back in Q2 2023 with $4.9 billion raised in 32 deals, a 126% increase quarter-over-quarter (QoQ). Funding was up 67% year-over-year (YoY).

Corporate funding into Energy Storage companies reached $7.1 billion in 59 deals in 1H 2023, a 55% decrease YoY compared to $15.8 billion in 60 deals in 1H 2022. LG Energy Solutions’ $10.7 billion IPO in January 2022 distorted the YoY comparison.

VC funding for Energy Storage companies was also up in Q2 2023 with $2.7 billion in 24 deals, a 148% increase QoQ compared to $1.1 billion in 19 deals in Q1 2023. With strong tailwinds from the U.S. Inflation Reduction Act (IRA), energy storage companies across the supply chain, from materials to project developers, were attractive to investors.

VC funding for Energy Storage in 1H 2023 was up 27%, with $3.8 billion in 43 deals compared to $3 billion in 48 deals in 1H 2022.

Ninety-nine VC investors participated in Battery Storage funding this quarter.

In 1H 2023, eight (one disclosed) Energy Storage M&A transactions were completed, compared to 13 deals (six disclosed) in 1H 2022.

Smart Grid

In 1H 2023, Smart Grid companies raised $1.8 billion in corporate funding in 33 deals, a 64% increase compared to $1.1 billion raised in 25 deals in 1H 2022. Boosted by significant investments into smart charging, VC funding in Smart Grid companies in 1H 2023 was 32% higher, with $986 million compared to the $746 million raised in 1H 2022.

Forty-two investors participated in VC funding this quarter.

In 1H 2023, there were six Smart Grid M&A transactions (three disclosed) compared to 10 transactions (two disclosed) in 1H 2022.

Mercom Capital Group’s Energy Storage and Smart Grid Funding and M&A Reports are comprehensive high-quality reports delivering superior insight, market trends and analysis. These reports help bring clarity to professionals in the current financial landscape of the smart grid industry.

The Quarterly Funding and M&A Reports contain quarter-over-quarter (QoQ) information on market activity displayed in easy-to-digest charts, graphs and tables, as well as data-driven analysis covering:

• Venture capital funding deals including top investors, QoQ trends, and a breakdown of charts and graphs by stage;
• VC funding by technology;
• Debt and other funding deals;
• Mergers and Acquisitions (M&A) including QoQ trends, with charts and graphs by technologies;
• Energy and storage funding deals;
• Smart Grid funding deals;
• Energy Efficiency funding deals;
• New cleantech funds;

This report also contains comprehensive lists of all announced deals and transactions during the quarter, including:

• VC deals and investors;
• M&A transactions and acquirers;
• New cleantech funds.

There were 227 companies and investors covered in this report. The report is 99 pages in length and contains 103 charts, graphs and tables.