Monday, January 30, 2023

US Energy Storage Funding and M&A Activity in 2022

Mercom reports that both equity financing and M&A transactions are up over 55% in 2022, as the energy transition attracts new levels of investment.

In a report tracking funding for distributed electricity technology to 2022, Mercom Capital Group reported that total equity, debt and public market funding for the full year reached $31.7 billion, with $26.4 billion going to energy storage The 124 transactions represent a 55% year-over-year increase from 2021, with acquisition activity in the storage market also at its highest since 2014.

Corporate funding totals $31.7 billion in 2022, up 63% to $19.5 billion in 2021, as global companies see the value of investing in the energy transition.

“Energy storage financing continues to grow at record levels in 2022; However, some financing activity has shifted from venture capital and private equity to debt and public market financing,” said Raj Prabhu, CEO of Mercom Capital. “Apart from record financing activity, a record number of energy storage companies and projects were also acquired. reflected the maturity of energy storage markets and assets. The global energy transition and the shift to electric vehicles, coupled with the Inflation Reduction Act, provided strong tailwinds for energy storage companies.

energy storage
Lithium-ion battery companies will receive the most funding in 2022, with battery recycling, iron-air, solid-state batteries and energy storage systems behind lithium batteries.

The biggest VC deals of the year include Eolian ($925 million), Form Energy ($450 million), Group14 Technologies ($400 million), Ascend Elements ($300 million) and Hydrostor ($250 million).

Debt and public market financing for energy storage companies increased by 151%, with $20.6 billion transacted, up from $8.2 billion in 2021. Six energy storage companies go public in 2022, up from four in 2021.

intelligent network
Smart grid companies to raise $3.3 billion in VC funding in 2022, a 175% increase from the $1.2 billion raised in 2021, representing the most VC funding since 2010. Including debt and public markets, total smart grid funding increased to $4.7 billion. , a big increase from the $2 billion raised in 2021.

The largest smart grid equity deals include TeraWatt Infrastructure ($1bn), GridServe ($243m), Arcadia ($200m), Be.EV ($127m) and Sense ($105m).

energy efficiency
Energy efficiency integrators and equipment vendors to earn $490 million in 2022, up from $122 million in 2021.

The largest efficiency capital deals include Redaptive ($200 million), Gridpoint ($75 million), Omconnect ($55 million), and Elevation ($20 million).

In 2022, debt and public market operations of energy efficiency companies decreased by $50 million in a single operation, compared to $343 million in a single operation in 2021.

The biggest M&A deal of the year was NRG Energy’s $2.8 billion deal with Vivint, Inc. This was followed by Hitachi’s acquisition of ABB’s 19.9% ​​stake in the company’s joint venture Hitachi Energy for $1.68 billion, and Dynapower, a manufacturer of energy storage and energy storage. Power Converters was acquired by Sensta Technologies for $580 million.

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Nation World News Desk
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