Total corporate funding in energy storage globally fell 55 per cent to USD 7.1 billion during the January-June period or first half of 2023, according to Mercom Capital.
The segment had attracted USD 15.8 billion during the same period in 2022, the research firm said in its latest report. The report comes at a time when various governments across the globe are aiming to increase storage of renewable energy as part of their green initiatives to meet their net zero goals. “Corporate funding into energy storage companies reached USD 7.1 billion in 59 deals in 1H (first half) 2023, a 55 per cent decrease YoY compared to USD 15.8 billion in 60 deals in 1H 2022,” it said.
However, the corporate funding in energy storage bounced back in April-June or Q2 2023 with USD 4.9 billion raised in 32 deals, a 126 per cent increase quarter-over-quarter (QoQ). The funding during the Q2 was up 67 per cent year-over-year (YoY), the report said. The venture capital (VC) funding in energy storage in 1H 2023 was up 27 per cent with USD 3.8 billion in 43 deals compared to USD 3 billion in 48 deals in 1H 2022. The VC funding for energy storage companies was also up in Q2 2023 with USD 2.7 billion in 24 deals, a 148 per cent increase QoQ compared to USD 1.1 billion in 19 deals in Q1 2023.
The debt and public market financing activity in the first half of 2023 was at USD 3.3 billion in 16 deals, lower as compared to the first half of 2022, when USD 12.8 billion was raised in 12 deals. In first half of 2023, smart grid companies raised USD 1.8 billion in corporate funding in 33 deals, a 64 per cent increase compared to USD 1.1 billion raised in 25 deals in 1H 2022.
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