Report says funding for corporate ESS in first quarter hits $2.2bn

Corporate funding for energy storage companies amounted to $2.2 billion in the first quarter of this year, according to a report published on April 17.

Mercom Capital Group’s report said smart grid companies raised $1.1 billion over the same period.

The $2.2 billion of total corporate funding — including venture capital (VC) funding, debt financing, and public market financing — was achieved in 27 deals.

The total was down on the $4.3 billion in 31 deals Mercom reported in the fourth quarter of 2022.

Meanwhile, Mercom said funding decreased significantly year-on-year compared to $12.9 billion in 27 deals in Q1 2022.

LG Energy Solution’s $10.7 billion IPO contributed 83% of Q1 2022 funding and skewed funding totals, Mercom said.

Energy storage firms’ VC funding, including private equity and corporate venture capital, amounted to $1.1 billion in 19 deals in Q1 2023, an 8% decrease year-on-year compared to $1.2 billion in 22 deals in Q1 2022.

Quarter-over-quarter funding was 35% lower compared to $1.7 billion in 22 deals in Q4 2022.

According to Mercom, the top five VC-funded battery storage companies in Q1 2023 were Electriq Power ($300 million), Our Next Energy ($300 million), WeView ($87 million), NanoGraf ($65 mil- lion) and Caban Systems ($51 million).

Announced debt and public market financing for EES tech in Q1 2023 fell 58% quarter-on-quarter with $1.1 billion in eight deals, compared to $2.6 billion in nine deals in Q4 2022.

However, announced ESS project funding came in at $2 billion in nine deals in Q1 2023, compared to $749 million raised in seven deals in Q4 2022.

Corporate funding in the smart grid sector amounted to $1.1 billion in 18 deals in Q1 2023, a 42% decrease compared to $1.9 billion in 23 deals in Q4 2022, according to Mercom.

In a year-on-year comparison, funding in Q1

2023 increased 230% compared to $331 million in 15 deals in Q1 2022.

There was a 66% decrease quarter-over-quarter for smart grid VC funding in Q1 2023, with $280 million raised in 14 deals compared to $846 million in 15 deals in Q4 2022.

In a year-on-year comparison, funding in Q1 2023 was 14% lower compared to Q1 2022, when $327 million was raised in 13 deals.

Mercom said the top five VC funded smart grid companies in Q1 2023 included EO Charging ($80 million), CHARGE+ZONE ($54 million), Magenta Mobility ($40 million), ConnectDER ($27 million), and Indra ($21 million).