Smart grids, battery storage enjoy major funding success

Battery storage, smart grid, and the energy efficiency sector have had a successful start into the year, with investment rising to more than USD 1 billion. Figures for battery storage have been particularly strong.

Battery storage is recording increased interest from investors with the total global funding for battery storage, smart grid, and the energy efficiency sector rising to USD 1.03 billion during the first half of 2017. The figures, released by Mercom Capital Group, a Texas based clean energy communications and consulting firm, show a 25 per cent increase over the same period a year ago, when the firm recorded a funding of USD 807 million for the three sectors.

According to Cleantechnica, the top venture capital (VC) deal across the three sectors – battery storage, smart grid, and energy efficiency – was a USD 400 million investment raised by Microvast Power from CITIC Securities, CDH Investment, National Venture Capital, and others. Microvast Power whose headquarters are also based in Texas offers electric vehicle battery system solutions.

Overall, the funding for battery storage increased by a much higher capacity despite less deals. Mercom Capital recorded USD 480 million across 18 deals, compared to USD 179 million raised over 20 deals a year ago, with Microvast Power grabbing the lion share of USD 400 million.

Smart grid investment slightly shrunk from USD 331 million over 29 deals in the first half of 2016 to USD 304 million over 22 deals recorded this year. The energy efficiency sector also recorded a slight blow with funding decreasing from USD 297 million over 23 deals in the first half year of 2016 to USD 242 million over 20 deals this year.

Image credit: Lennart Tange via Flickr/CC BY 2.0

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