Total corporate funding for smart grid, energy efficiency and battery storage companies in 2020 was up by 112%, at $8.1bn compared with $3.8bn in 2019.

According to Mercom Capital Group, global venture capital, private equity and corporate venture capital funding for the three sectors in 2020 was up 12% at $2.6bn compared with $2.3bn in 2019.

Smart grid

Smart grid companies raised $748m in VC funding in 38 deals in 2020, a 149% increase over the $300m raised in 38 deals in 2019. Total corporate funding, including debt and public market financing, came to $758m in 41 deals compared with $372min 41 deals in 2019.

The top VC funded companies in 2020 were: ChargePoint, which brought in $127m; Star Charge, which received $125m; Tibber, which secured $65m; SmartRent with $60m; and Probus Smart Things with $53m.

A total of 102 investors funded smart grid companies in 2020, compared with 78 in 2019. The top VC investors in 2020 were Congruent Ventures, Energy Impact Partners, National Grid Partners and Silicon Valley Bank.

Smart charging companies had the largest share of VC funding in 2020 with $324m in 13 deals, followed by smart grid communications companies with $119m in six deals, and demand response companies with $104m in three deals.

In 2020, there were 21 M&A transactions (four disclosed) recorded in the smart grid sector compared with 29 in 2019.

Energy efficiency

VC funding for energy efficiency companies came to $291m in 16 deals in 2020 compared with $298m in nine deals in 2019. Total corporate funding, including debt and public market financing, reached $791m in 2020 compared with $670m in 2019.

The top VC funded companies in 2020 were: Redaptive, which raised $157m; Palmetto with $29m; Juganu with $18m; Infogrid with $16m; and Eta Compute with $13m.

A total of 52 investors participated in funding deals in 2019 compared with 38 investors in 2019. Evergy Ventures was the most active investor in 2020.

In 2020, debt and public market financing announced by energy efficiency companies rose to $500m in one deal compared to $371m in three deals in 2019.

M&A activity for efficiency companies in 2020 decreased with four transactions, two of which disclosed the transaction amount. In 2019, there were nine M&A transactions with two that disclosed the transaction amount.

Battery storage

Total corporate funding in the battery storage sector was up 136% with $6.6bn in 54 deals in 2020. However, VC funding for battery storage companies totalled $1.5bn in 32 deals compared with $1.7bn in 32 deals in 2019.

Lithium-ion based battery technology companies received the most VC funding in 2020, with $649m. Other categories that received funding included solid-state batteries, energy storage downstream, energy storage systems and flow batteries.

The top VC funded companies in 2020 were: Northvolt with $600m; QuantumScape with $200m; Zenobe Energy with $198m; ProLogium Technology with $100m; and Form Energy with $76m.

There were 105 VC investors participating in battery storage deals in 2020 compared with 78 in 2019. Breakthrough Energy Ventures was the top investor in 2020. Utilities and oil and gas companies were involved in four battery storage funding deals in 2020.

In 2020, announced debt and public market financing for battery storage companies was up significantly with $5bn in 22 deals compared with $1.1bn in ten deals in 2019. This is the highest amount raised in public market financing since 2014. Northvolt’s $1.6bn and Plug Power’s $1bn loan were the largest public market financing deals in 2020.

There were 19 M&A transactions in the battery storage category in 2020, of which two disclosed transaction amounts.

Three battery storage companies – Quantaumscape, Romeo Power and Stem – announced reverse mergers through special purpose acquisition vehicles in 2020.

A total of 24 battery storage and solar plus storage M&A transactions were announced in 2020 compared with 11 in 2019.