Nine water companies have joined with twenty NGOs to create shared principles for sustainable water.

Yesterday, the companies, which are part of an organisation called Blueprint for Water, signed an agreement intending for the shared principles to deliver “more effective joint working” on environmental and wildlife issues, including more on the ground projects.

They have committed to tackling pollution and working with farmers on more environmentally-friendly agricultural techniques.

Hannah Freeman of Wildfowl & Wetlands Trust, Chair of Blueprint for Water, said: “This is the first time water companies and nature charities have agreed how to work together ahead of business plans being delivered. With our waters under increasing pressure it is essential that businesses and environmentalists are more joined-up in acting as their guardians.”

This news follows water companies submitting business plans to Ofwat, the body that is responsible for the economic regulation of the privatised water in England and Wales, in a bid to be more sustainable.

Notably, Thames Water, the UK’s biggest water and wastewater service provider, has pledged to invest £11.7 billion to improve infrastructure, service and efficiency over the 2020-25 period.

Steve Robertson, Thames Water Chief Executive Officer, said: “Our primary role, to provide resilient water and waste services to customers across London and the Thames Valley, touches the environment on multiple levels every single day. When planning our investment it’s hugely important to work closely with environmental groups to limit the impact we have and ensure we sustain a thriving environment for future generations.”

Today, the Zero Emissions Vehicle Summit, held in Birmingham, will be attended by PM, Theresa May.

Here, a £106 million funding boost will be announced for the research and development of zero emission vehicles.

The Prime Minister is expected to say: "I want to see Britain, once again, leading from the front and working with industries and countries around the world to spearhead change. That is why I have set this country an ambitious mission. To put the UK at the forefront of the design and manufacturing of zero-emission vehicles and for all new cars and vans to be effectively zero-emission by 2040."

At the Zero Emissions Vehicle Summit, the new Electric Vehicle Energy Taskforce, which was announced as a part of the ‘Road to Zero’ strategy in July, will be discussed. This is the first time that the energy and automotive industry has been brought together by the Taskforce.

Jesse Norman MP, Electric Vehicles Minister, said: “Bringing together government, automotive and energy sectors will help to ensure that Electric Vehicles become an integrated part of the UK energy system, and infrastructure upgrades can be planned in an efficient and sustainable way.”

The summit will gather leading transport visionaries in one place and provide an opportunity to meet and discuss important issues with senior government representatives from around the world.

However, the announcement has been met with some backlash. Speaking ahead of the summit, Craig Bennett, Friends of the Earth’s chief executive, said:  “We can’t afford to wait until 2040 for most new vehicles to be zero-emission. Pollution from road traffic is a major cause of air pollution and climate change – industry must be challenged to clean up its act far sooner.”

Photo Credit: Alexander Popov

Sony have joined the RE100 in a pledge of sustainability.

On Monday, the company announced that they aim to be 100 per cent renewable across all of their business sites by 2040.

Sony’s European sites have already achieved this goal, but by 2040 they promise the same globally.

They want to install solar panels at their manufacturing sites in Japan and Thailand. Japan sites have the largest amount of energy consumption and therefore there will be a focus within the country to work directly with RE100 to ensure the target is met.

Kenichiro Yoshida, President and CEO of Sony Corporation, said: “For many years, Sony has been an industry leader in actively addressing climate change and other environmental issues. As part of our “Road to Zero” initiative to eliminate our environmental footprint, we are pleased to join RE100 and contribute to the realization of a society that operates on fully renewable energy.”

Shiro Kambe, Sony Corporate Executive Officer, said: “Switching to green energy will temporarily raise costs, but it will add more value to our business.”

The RE100 are a group of over 140 members worldwide who are committed to promoting and utilising renewable energy.

Helen Clarkson, CEO of the Climate Group, said: “We are expected to welcome Sony aboard RE100. From PlayStation and image sensors to consumer electronics, music, and film, this is the largest entertainment and technology business in the world stepping up and switching its entire operations to 100% renewable electricity.”

Sony join tech giants Facebook and Apple who have also pledged to run on 100 per cent renewable energy in a bid to go green.

Photo Credit: Ian Muttoo

A supply ship has set sail in San Francisco in an attempt to clean up the ocean.

The ambitious project aims to clean up 50 per cent of the 80, 000 tonnes of plastic located in the infamous Great Pacific Garbage Patch within five years.

The boat, which departed on September 8th 2018, is now on its way to a test stop, for a 2-week trial before continuing its journey toward the Great Pacific Garbage Patch, 1,200 nautical miles offshore. Some of the plastic in the garbage patch dates back to the sixties.

The Ocean Cleanup, developed by Dutch inventor Boyan Slat, is working with Maersk to complete this journey. Mr Slat, said: "The main mission is to show that it works, and hopefully then in a few months from now, the first plastics will arrive back into port, which means that it becomes proven technology.”

Once the plastic has been collected from the ocean it will be brought back for recycling and then sold, the profits will then fund future Ocean Cleanup projects.

Steen S. Karstensen, CEO of Maersk, said: “We are truly proud to be supporting the installation of the Ocean Cleanup’s first system. Large towing operations have been a part of Maersk’s Service Supply’s work-scope for decades. It is rewarding to see that our marine capabilities can be utilised within new segments, and to support solving such an important environmental issue.”

Global plastic production has risen steadily since the 1950’s, this has resulted in a number of problems for our oceans and, in particular, marine life.

This news follows the start of the United Nations ocean treaty conference, set to create policy for the high seas over the next two years.

To find out more about the Ocean Cleanup click here.

Photo Credit: The Ocean Cleanup/ Pierre Augier

Australian National University (ANU) analysis has found that Australia is on its way to running on 100 per cent renewable energy by early 2030s.

Renewable energy in Australia is on the rise, this could also result in them reaching the half way goal of 50 per cent renewable energy, set at the Paris Agreement, by 2025.

The country is set to install over 10 gigawatts of new wind and solar power in 2018 and 2019. As a result, if the rate of growth in maintained, they report found that they should reach their target of running on 100 per cent renewable energy by early 2030s.

Australia had a record breaking last year, adding 2,200 megawatt capacity of renewable energy. However, the people who produced the report, although convinced that technology and the renewable energy industry will be able to meet the goal, have voiced concerns over how politics will interfere.

Recently, the newly appointed Australian Government have come under pressure from environmentalists about the fate of the country’s climate policy.

Professor Andrew Blakers, ANU Research School of Engineering, said: “Australia is installing wind and solar PV at a faster per capita rate than nearly every other country.”

Professor Ken Baldwin, ANU Energy Institute director, said: “Australian industry is proving it’s not difficult or expensive to make deep and rapid cuts to greenhouse gas emissions. All the evidence points to Australia’s capacity to be a renewable energy superpower, with all the economic and environmental benefits that come with that.”

This follows news that Queensland are on track to be 90 per cent renewable by 2030.

Global leaders have begun talks in New York this week to discuss the long-awaited UN ocean treaty, a decade in the making.

The intergovernmental conference to draft the first‑ever treaty to conserve and protect marine diversity on the high seas is of extreme importance because currently there is no global policy that protects our oceans.

Currently, 12.7 million tonnes of plastic end up in our oceans each year, 100,000 mammals die each year from this plastic pollution.

Professor Alex Rogers from Oxford University, who has provided evidence to inform the UN treaty process, said: “The half of our planet which is high seas is protecting terrestrial life from the worst impacts of climate change. Yet we do too little to safeguard that or to protect the life within the ocean which is intrinsic to our collective survival.”

There are several organisations such as Parley for the Oceans and Outerknown that are raising awareness for the protection of marine life however, they do not have global power. Recently, influential figures such as the Swimmer, Lewis Pugh, have directed awareness at the government to protect our oceans.

Dr Sandra Schoettner, Greenpeace's global ocean sanctuaries campaign, speaking from outside the UN said: ““The fate of our oceans is in the hands of everyone in these negotiations. It's no exaggeration to say that the governments meeting today are making history as we speak. It is urgent they create a strong ocean treaty which allows us to create a global network of ocean sanctuaries.”

In 1982, the UN adopted the Convention of the Law of the Sea but the high seas were not included. Over the next two years the treaty is expected to provide and implement several proposes to protect the high seas.

Photo Credit: Greenpeace

This week is Zero Waste Week, a movement to encourage waste reduction.

Zero waste week started this Monday 4th of September 2018. It was founded in 2008 and since then has had a global reach of 56 million people.

The initiative is designed to involve the general public in a bid to reduce our waste habits, this year’s theme is ‘Plastic-Unwrapped’. Plastic waste is an ongoing problem that is threatening our oceans and marine life.

Currently, the average household wastes 20-30 per cent of the food they buy. Zero Waste Week aims to combat this. To support the campaign, all you have to do is sign up on their website to receive a newsletter with hints and tips on how to reduce your daily waste.

The movement, based in the UK, has participants from 72 countries. The website demonstrates the efforts made from people around the world to achieve zero waste.

The website said: “Zero Waste Week is a grassroots campaign raising awareness of the environmental impact of waste and empowering participants to reduce waste.”

Recently, global companies such as Coca Cola have pledged to reduce plastic waste. Zero Waste Weeks gives an opportunity for consumers to do the same.

The campaign has been promoted by some of the UK’s most powerful leaders. In a personally signed letter, Prime Minister Theresa May wrote: “Zero Waste Week is inspiring people around the world to dramatically reduce the waste they create for good. By sharing your own experiences as a family and suggesting simple ways people can recycle and reuse you are making it easy and fun for as many people as possible to get involved in your important campaign.”

Campaigners across the world have come out in force to promote the initiative, join the movement now at #zerowasteweek.

The cricket ground has introduced a number of measures to reduce plastic waste.

By installing water fountains and switching to reusable drinking vessels it has prevented roughly 690,000 pieces of plastic from being used at the venue.

This follows the year anniversary of its partnership with Sky Ocean Rescue, with the goal to slash the amount of single-use plastic used at the cricket ground and become plastic free by 2020.

Part of the scheme involved handing out 25,000 Sky Ocean rescue-branded reusable water bottles to reduce the need for disposable plastic bottles. They have also created the hashtag - #PassOnPlastic.

Fiona Ball, Sky Ocean Rescue's head of responsible business, said: "Single-use plastic is a huge issue. Trillions of pieces of plastic are floating around our oceans, with another eight million tons introduced to this ecosystem every year. It never decomposes and will remain there forever. Working with the Kia Oval team has not only helped us bring this issue to life for an army of sports fans but also helped them make simple life changes that collectively make a big difference."

Due to efforts from the surrey cricket ground, after this weekend’s final Test between England and India, 20,000 fewer plastic pint glasses will be taken to landfill.

Richard Gould, Surrey County Cricket Club's chief executive, said: "Increasing the sustainability of our operation is a major priority at the Kia Oval as we work towards our goal of becoming single-use plastic free by 2020. It is a difficult journey, involving work in every area of our business and initiatives like this with Sky Ocean Rescue really help move us in the right direction."

To find out more about Sky Ocean Rescue click here.  

Photo Credit: Sky Ocean Rescue

Tesco, along with several other companies, have joined forces to implement a clean van scheme.

16 of the UK’s largest fleet companies are set to launch the Clean Van Commitment, led by Global Action Plan, to signal their promise to the environment.

They have pledged to invest £40 million in rolling out zero emission models over the next two years as part of plans to replace 18,000 diesel vans over the next decade. The Commitment also involves switching a proportion of their fleet, 2,400 vehicles, to electric by 2020.

Research from the University of Oxford and the University of Bath has shown that the total health cost to the UK from vans is £2.2 billion each year. This has created a demand for tougher regulations on transport pollution.  

Jesse Norman, Roads Minister and MP, said: “The government's Road to Zero strategy outlines its intention to lead the world in the design and manufacturing of zero emission vehicles - delivering significant environmental, health and economic benefits.”

Electric vehicles in the UK are on the rise, with 7,500 being sold in August. Just this week, Mercedes-Benz unveiled their new production car, EQC.

Bex Bolland, Head of Air Quality at Global Action Plan said:  “Today marks a significant moment for the UK’s van sector. For the first time, we know just how quickly van fleet leaders aim to adopt electric vehicles. Their collective purchasing commitments show manufacturers that demand is thriving, and will help energy sector, local authority and central government planning. These 16 fleets will pave the way for the national fleet of 4 million vans to become zero emission, significantly improving the air we all breathe.”

Carlsberg are set to replace their multi-pack packaging in a bid to reduce plastic waste.

The plastic pack rings, known in the industry as hi-cones or yokes, are used to hold together multi-packs of canned drinks. However, they have become a real problem in contributing to ocean plastic pollution.

The Danish brewer are proposing to, instead, use recyclable glue that will hold the cans together but are designed to audibly snap when pulled apart.

This new ‘Snap Packs’ are proposed to reduce plastic waste globally by more than 1200 tonnes a year which is the equivalent to 60 million plastic bags. They will be available across Tesco’s in the UK from September.

Cees ‘t Hart, CEO of the Carlsberg Group, said: “It’s an important day for Carlsberg. We are working hard to deliver on our ambitious sustainability agenda and help tackle climate change. We always strive to improve and today’s launch clearly shows our ambition to follow in our founders footsteps towards a better tomorrow.”

Bo Øksnebjerg, Secretary General in WWF Denmark, said: “Our wildlife is drowning in plastic – and the problem is unfortunately growing considerably. That is why we consider it huge progress that Carlsberg is now launching solutions that significantly reduce the amount of plastic in its packaging.”

Carlsberg have previously pledged to become more sustainable with their ‘ZERO’ goal which involves an ambitious target to achieve zero carbon emissions at their breweries by 2030.

They have also committed to reducing their water usage by 50 per cent by 2030. This is significant as water is the main ingredient in beer.

The company join other global businesses, including Lego and Walkers, in a bid to reduce plastic pollution.  

Today, Burberry have announced they will no longer destroy products that are unsalable in a bid to become more sustainable.

Last year, it was reported that the company destroyed over £28.6 million worth of unsold products to protect its brand. This followed a massive backlash from environmentalists prompting Burberry to respond.

Marco Gobbetti, Chief Executive Officer at Burberry, said: “Modern luxury means being socially and environmentally responsible. This belief is core to us at Burberry and key to our long-term success. We are committed to applying the same creativity to all parts of Burberry as we do to our products.”

The sustainability of the textile industry has been long debated, and the idea of renting clothing has been introduced to reduce the large amount of waste produced.

Burberry said: “We already re-use, repair, donate or recycle unsaleable products and we will continue to expand these efforts.”

The brand has teamed with sustainable luxury company Elvis & Kresse which means that over the next five years 120 tonnes of leather off-cuts will be transformed into new products.

The high-end fashion company have also committed to stop using real fur. There will be no real fur in Riccardo Tisci’s debut collection for Burberry next month, and they will begin to phase out real fur products.

Fur in the fashion industry is beginning to diminish after continuous campaigns from animal-rights activists. Burberry join other global designers such as Gucci and Giorgio Armani who have also gone fur-free.

Burberry have set three targets to become sustainable by 2022; become carbon neutral and revalue waste, drive positive change through 100 percent of Burberry’s products and positively impact one million people.

A new, technology first, ‘spinning’ wind turbine has won the UK James Dyson award.

The O-Wind turbine was created by Nicolas Orellana, 36, and Yaseen Noorani, 24, both MSc students at Lancashire University.

The new design takes advantage of horizontal and vertical winds without requiring steering. This differs to traditional wind turbines which only capture wind travelling in one direction.

The turbine is of a spherical shape with a single axis of rotation going through it. Its dimensions and shape mean that it is very suitable for small-scale energy production by individual apartment dwellers.

The unique size and shape of the turbine mean that it can be placed in different types of environment compared to conventional turbines which require more space.

Mr Orellana said: “I’ve always been enthusiastic about helping people solving their problems in humanitarian and professional contexts. Sustainability is and will continue to be one of the biggest challenges for people around the globe, and it will require the commitment of us all to be solved. We expect the O-Wind to be a valuable contribution to help improving our chances of reaching sustainability one day.”

Wind power currently generates just 4 per cent of the world’s electricity but it has much more potential according to Mr Noorani.

The pair will receive £2,000 towards developing the project, production may take up to five years but the duo hope that the device can be scaled up to work on large structures such as the side of a building or balcony as this is where wind speeds are the highest.

Photo: Dyson. Cardboard prototype being tested in a real scenario at the Morecambe Bay, UK

Photo Credit: Dyson

Deployment of utility-scale Renewable Energy, particularly Wind and Solar Power, has progressed rapidly over the last few years despite recent challenges.

 

 

I foresee Solar attracting maximum investment in the next five years. Solar is the thrust area for GOI for achieving RE targets. The Ecosystem required for its growth has been put in place. The project risks and their mitigation strategies are known.  Solar because of viable tariffs and matured technology has attracted the interest of investors.  

 

The Government of India has set a renewable energy target of 175 GW to be achieved by 2022 of which solar will contribute 100 MW. India’s RE capacity at the end of FY17 was about 57 GW with wind contributing more than half of it, but Solar is gaining ground steadily. If the RE target has to be achieved, the current RE capacity has to triple in the remaining five years. As expected, major capacity contribution has to come from Solar (both IPP and rooftop), where the capacity has to increase at least nine times. In order to facilitate this, Government has put in place conducive policies & programmes (Eg. Solar Park and JNNSM), introduced infrastructure initiatives such as Green Corridors for evacuation from solar rich regions, created a demand push through increased solar RPO (from 2.5% to 8%) for obligated entities, promotion of solar pumps and other solar products, created capacity through Surya Mitra Program and facilitated development of indigenous manufacturing capability through Make in India and push to solar R&D. Government has exempted solar projects from environmental clearances and has facilitated the acquisition of land through Solar Parks. So far 34 Solar Parks in 21 states with a total capacity of 20,000 MW have received in-principle approval under Phase I of the initiative and under Phase II additional 20,000 MW has been approved.

 

Solar rooftop is attractive for Commercial and Industrial consumers as their retail tariffs are considerably higher than the cost of generation in most of the states. These consumers have added significant capacity under capex model. For residential consumers the payback period is still high; however, in future as retail tariffs increase, the solar rooftop will be an attractive proposition for them as well. 

 

It has been estimated that Solar will require investment of around INR 4800 billion, if it has to achieve the target. Fortunately the ever decreasing generation cost, established technology and growing demand has attracted strategic and financial investors, venture capitalists, private equity and pension funds. This has led to flow of investment and adoption of low cost financial innovations such as green bonds.  The solar industry is expected to mature with consolidation and see emergence of professionally managed relatively firms.

 

 

 

Greenstone expects utility scale solar and wind projects to continue to dominate the renewable energy investment sector in India over the next five years. We believe this will be driven by a number of factors:

 

First, the cost of electricity from solar and wind projects has achieved grid parity and the long-term trend suggests that costs will continue to decline. Consequently, we do expect substantial tenders for additional capacity and for utilities to increase their focus on integration and management. 

 

Second, there is substantial existing capital available to fund projects. Several established platforms have sufficient capital lient the appetite to grow substantially. Additionally, the sector continues to witness increasing interest from international groups. 

 

Third, transmission capacity is sufficient to absorb an additional 10 GW+ of intermittent generation based on feedback from industry consultants. Consequently, assuming the other areas can be appropriately managed (such as land acquisition), we do not see significant near term transmission hurdles for renewable energy. 

 

Ultimately, the utility scale renewable energy markets have matured substantially and our expectation is that robust capacity addition will continue over the next five years. 

 

Issuances of bonds, non-convertible debentures (NCDs) included have been witnessing record volumes for past 3 years.

Funding into Battery Storage companies was up in the first half

Mercom Capital Group, llc, a global clean energy communications and consulting firm, released its report on funding and mergers and acquisitions (M&A) activity for the Battery Storage, Smart Grid, and Energy Efficiency sectors for the second quarter (Q2) and first half (1H) of 2018. 

Total corporate funding (including venture capital funding, public market, and debt financing) in 1H 2018 was down with $2.4 billion raised compared to $2.8 billion raised in 1H 2017, a 14 percent decrease year-over-year (YoY). The decline in funding in 1H was due to lower funding activity in Smart Grid and Efficiency categories while funding increased in the Battery Storage sector. 

Global VC funding (venture capital, private equity, and corporate venture capital) for Battery Storage, Smart Grid, and Efficiency companies in 1H 2018 was 18 percent lower with $839 million compared to over $1 billion raised in 1H 2017. 

In Q2 2018, VC funding for Battery Storage, Smart Grid, and Efficiency companies decreased to $367 million in 27 deals compared to $472 million in 23 deals in Q1 2018. Funding amounts were 33 percent lower YoY compared to the $591 million raised in 24 deals in Q2 2017.

To get a copy of the report, visit: http://bit.ly/MercomSGQ22018

Battery Storage

VC funding for Battery Storage companies in 1H 2018 was 12 percent higher with $539 million compared to the $480 million raised in 1H 2017. 

Top 5 VC deals in 1H 2018: $80 million raised by Stem, $71 million raised by sonnen, $65 million secured by Ionic Materials, Durapower’s $40 million, and $40 million raised by Ice Energy. A total of 34 VC investors participated in Battery Storage funding in 1H 2018. 

Announced debt and public market financing activity in the first half of 2018 ($142 million in five deals) was 10 percent higher compared to the first half of 2017 when $129 million was raised in nine deals. 

There were four announced Battery Storage project funding deals in 1H 2018 bringing in a combined $34 million compared to $5 million in two deals in 1H 2017. 

In 1H 2018 there were a total of eight (one disclosed) Battery Storage M&A transactions, compared to two transactions (one disclosed) in 1H 2017. There were four Battery Storage M&A transactions in Q2 2018. By comparison, there were four Battery Storage M&A transactions in Q1 2018 and one transaction in Q2 2017. 

In the first halves of 2018 and 2017, there were two Battery Storage project M&A transactions each. There were two Battery Storage project M&A transactions in Q2 2018. By comparison, there were no Battery Storage project M&A transactions in Q1 2018 and two transactions in Q2 2017. 

Smart Grid

VC funding for Smart Grid companies in 1H 2018 was 56 percent lower with $135 million compared to the $304 million raised in 1H 2017. 

In Q2 2018, VC funding for Smart Grid companies decreased to $60 million in four deals compared to $75 million in seven deals in Q1 2018. The funding amount was 57 percent lower YoY compared to $139 million raised in eight deals in Q2 2017. 

Top 5 VC deals in 1H 2018: $55 million raised by Smart Wires, $27 million raised by Bidgely, $20 million secured by Husk Power Systems, Mnubo’s $17 million, $6 million raised by Simple Energy. A total of 19 VC investors participated in Smart Grid funding in 1H 2018. 

Announced debt and public market financing for Smart Grid companies came to $1.3 billion in two deals in 1H 2018 compared to $9 million in one deal in 1H 2017. 

In 1H 2018 there were a total of five Smart Grid M&A transactions (all undisclosed), compared to 13 transactions (three disclosed) in 1H 2017. There were four Smart Grid M&A transactions in Q2 2018. By comparison, there was one Smart Grid M&A transaction in Q1 2018 and six transactions in Q2 2017. 

Efficiency

VC funding for Energy Efficiency companies in 1H 2018 was 32 percent lower with $165 million compared to the $242 million raised in 1H 2017. 

In Q2 2018, VC funding for Efficiency companies decreased to $67 million in six deals compared to $98 million in four deals in Q1 2018. Funding amounts were 131 percent higher YoY compared to $29 million raised in six deals in Q2 2017. 

Top 5 VC deals in 1H 2018: $61 million and $36 million raised by ecobee in two separate deals, $27 million secured by Carbon Lighthouse, Redaptive’s $20 million, and $10 million received by Petros PACE Finance. A total of 20 VC investors participated in Energy Efficiency funding in 1H 2018. 

Announced debt and public market financing activity in the first half of 2018 ($212 million in two deals) was 88 percent lower compared to 1H 2017 when $1.7 billion was raised in nine deals. 

Property Accessed Clean Energy (PACE) financing deals in 1H 2018 came to $694 million in three deals compared to $668 million in same number of deals in 1H 2017. 

In 1H 2018 there were a total of three Efficiency M&A transactions (all undisclosed), compared to five transactions (two disclosed) in 1H 2017. There were two Efficiency M&A transactions in Q2 2018. By comparison, there was one Efficiency M&A transaction in Q1 2018 and Q2 2017 each. 

To get a copy of the report, visit: http://bit.ly/MercomSGQ22018

 

About Mercom Capital Group

Mercom Capital Group, llc, is a global communications and research and consulting firm focused on cleantech. Mercom delivers market intelligence and funding and M&A reports covering Battery Storage, Smart Grid and Energy Efficiency, and Solar, and advises companies on new market entry, custom market intelligence and strategic decision-making. Mercom's communications division helps companies and financial institutions build powerful relationships with media, analysts, local communities, and strategic partners. About Mercom: http://www.mercomcapital.com. Mercom's clean energy reports: http://store.mercom.mercomcapital.com/page/.

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Mercom Capital Group, llc, a global clean energy communications and consulting firm, released its report on funding and merger and acquisition (M&A) activity for the solar sector in the second quarter and first half of 2018. Total corporate funding (including venture capital funding, public market, and debt financing) in the first half (1H) of 2018 was up with $5.3 billion raised compared to the $4.6 billion raised in 1H 2017, a 15 percent increase year-over-year (YoY). 

Corporate funding increased in Q2 2018 with $2.8 billion in 34 deals compared to the $2.5 billion in 44 deals in Q1 2018. Year-over-year funding in Q2 2018 was about 102 percent higher compared to the $1.4 billion in Q2 2017.

To learn more about the report, visit: http://bit.ly/MercomSolarQ22018

 “The first half of 2018 has been a roller-coaster for the solar industry marked by uncertainty due to Trump tariffs followed by the recent Chinese subsidy pullback,” commented Raj Prabhu, CEO of Mercom Capital Group. “Though financial activity was better compared to the same period last year, the market is still sorting out the winners and losers that would come out of a potential slowdown in Chinese demand, which is expected to result in an oversupply situation and eventual price crash in components across the globe.”

Global VC funding (venture capital, private equity, and corporate venture capital) for the solar sector in 1H 2018 was 36 percent lower with $458 million compared to the $716 million raised in the first half of 2017. 

In Q2 2018, VC funding for the solar sector increased to $298 million in 12 deals compared to $161 million in 22 deals in Q1 2018. The funding amount was 133 percent higher YoY compared to the $128 million raised in 23 deals in Q2 2017. 

Top VC deals in 1H 2018 included: $112 million raised by Wunder Capital, $100 million raised by Sunnova, $55 million secured by Off-grid Electric, Sunlight Financials’ $50 million, $25 million raised by d.light design, and the $23 million raise by Solaria. A total of 42 VC investors participated in solar funding in 1H 2018.

Solar public market funding in 1H 2018 was higher compared to the first half of 2017 with $1.25 billion raised in 12 deals compared to $934 million in 19 deals in 1H 2017, a 33 percent increase. Public market financing into the solar sector rose to $1.1 billion in eight deals in Q2 2018 compared to just $103 million in four deals in Q1 2018, and $473 million raised in six deals during Q2 2017. 

Announced debt financing activity in the first half of 2018 ($3.6 billion in 32 deals) was 22 percent higher compared to the first half of 2017 when $3 billion was raised in 33 deals. Most of that increase was due to two securitization deals: Vivint solar raised $466 million through asset back notes and Dividend Finance secured $105 million in a similar deal. 

Large-scale project funding in the first half of 2018 saw $7.96 billion announced for 98 projects compared to 1H 2017 when a record $7.4 billion was raised in 81 project funding deals.

Announced residential and commercial solar funds totaled $625 million in 1H 2018 compared to $1.8 billion in the same period of 2017.

In 1H 2018 there were a total of 46 solar M&A transactions, compared to 41 transactions in 1H 2017. There were 27 solar M&A transactions in Q2 2018. By comparison, there were 19 solar M&A transactions in Q1 2018 and 12 transactions in Q2 2017. Of the 27 total transactions in Q2, 16 involved solar downstream companies, six involved PV manufacturers, three were equipment manufacturers, and two involved BoS companies.

There were 117 large-scale project acquisitions in 1H 2018 totaling 11.6 GW compared to 101 project acquisitions totaling 10.9 GW in the first half of 2017.

Investment firms and funds were the most active acquirers in 1H 2018, picking up projects totaling 4 GW.

There were 269 companies and investors covered in this report. It is 78 pages in length and contains 78 charts, graphs, and tables.

 To learn more about the report, visit: http://bit.ly/MercomSolarQ22018

 

About Mercom Capital Group

Mercom Capital Group, llc, is a global communications and consulting firm focused exclusively on clean energy and financial communications. Mercom’s consulting division advises cleantech companies on new market entry, custom market intelligence and overall strategic decision making. Mercom’s consulting division also delivers highly respected industry market intelligence reports covering Solar Energy and Battery Storage/Smart Grid/Efficiency. Our reports provide timely industry happenings and ahead-of-the-curve analysis specifically for C-level decision making. Mercom’s communications division helps clean energy companies and financial institutions build powerful relationships with media, analysts, government decision makers, local communities and strategic partners. For more information about Mercom Capital Group, visit: http://www.mercomcapital.com. To get a copy of Mercom’s popular market intelligence reports, visit: http://eepurl.com/cCZ6nT

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Mercom Capital Group, llc, a global clean energy communications and consulting firm, released its report on funding and mergers and acquisitions (M&A) activity for the Battery Storage, Smart Grid, and Energy Efficiency sectors for the first quarter of 2018.

To get a copy of the report, visit: http://bit.ly/MercomSGQ12018

Battery Storage

Corporate funding in Battery Storage came to $299 million in 12 deals compared to $154 million in six deals in Q4 2017. In a year-over-year (YoY) comparison, $80 million was raised in 10 deals in Q1 2017. 

Venture capital (VC) funding (including private equity and corporate venture capital) raised by Battery Storage companies in Q1 2018 jumped to $299 million in 12 deals from $151 million in five deals in Q4 2017 due to some large deals in the quarter. Year-over-year, funding was significantly higher compared to the $58 million raised in eight deals in Q1 2017. 

The top five VC funded Battery Storage companies this quarter were: Stem, which raised $80 million from Activate Capital; Ionic Materials secured $65 million from Dyson, Samsung, A123, Hitachi, Renualt, Nissan, and Mitsubishi; Durapower secured an investment of $40.18 million from Banpu Infinergy Company and K-IX Ace; Battery Energy Storage Solutions (BESS) received ~$38.5 million in funding from Santander Corporate & Commercial; and $34 million was raised by Solid Energy.

Fifteen investors participated in Battery Storage funding this quarter with Energy Storage Systems companies raising the most. 

There were four M&A transactions involving Battery Storage companies in Q1 2018 and the financial details of the transactions were not disclosed. In Q4 2017 and Q1 2017, there was one M&A transaction each that did not disclose a transaction amount. 

Smart Grid

Corporate funding in Smart Grid came to $1.3 billion in nine deals compared to $796 million in 12 deals in Q4 2017. In a YoY comparison, $164 million was raised in 14 deals in Q1 2017. 

VC funding for Smart Grid companies increased 79 percent in Q1 2018 with $75 million in seven deals compared to $42 million in nine deals in Q4 2017. In a YoY comparison, in Q1 2017 $164 million was raised in 14 deals. 

The top VC funded Smart Grid companies included: Bidgely, which secured $27 million from Georgian Partners, Khosla Ventures, E.ON, innogy, and Constellation Technology Ventures; Husk Power Systems received an equity investment of $20 million from Shell Technology Ventures, Swedfund International, and ENGIE Rassembleurs d’Energies; and Mnubo raised $16.5 million from HSB Group. 

Fifteen investors participated in Smart Grid VC funding rounds this quarter with SG Communications companies raising the most. 

A combined $1.3 billion was raised in two debt financing deals in Q1 2018, compared to $754 million raised in three deals in Q4 2017. 

One M&A transaction was announced in Q1 2018 and it did not disclose a transaction amount, compared to eight transactions (two disclosed) in Q4 2017. In a YoY comparison, there were seven M&A transactions in Q1 2017. 

Efficiency

Corporate funding in Energy Efficiency came to $104 million in five deals compared to $916 million in 14 deals in Q4 2017. In a YoY comparison, $514 million was raised in 17 deals in Q1 2017. 

VC funding raised by Energy Efficiency companies in Q1 2018 remained steady at $98 million in four deals compared to $95 million in 10 deals in Q4 2017. In a YoY comparison, $213 million was raised in 14 deals in Q1 2017. 

The Top Efficiency deals included: $61 million raised by ecobee from Energy Impact Partners and eight institutional investors including Thomvest, Relay Ventures, and the Amazon Alexa Fund; the $27 million raised by Carbon Lighthouse from GRC SinoGreen Fund, JCI Ventures, SV Tech Ventures, EBay founder Pierre Omidyar’s Ulupono Initiative, Ekistic Ventures, Tom Steyer’s Radicle Impact Partners, former General Motors Vice Chairman Steve Girsky, and Tesla Chief Technology Officer Jeffrey B. Straubel; and the $10 million received by Petros PACE Finance from former Major League Baseball player Alex Rodriguez and his investment firm A-ROD.

Fifteen investors participated in VC funding this quarter. Within the sector, Temperature Control companies brought in the most funding. 

Debt and public market financing for Efficiency companies fell to $6 million in one deal this quarter compared to $621 million in three deals in Q4 2017. 

In Q1 2018, there was one M&A transaction (transaction details not disclosed) while in Q4 2017, there were three M&A transactions (all undisclosed). In Q1 2017, there were four M&A transactions in the Energy Efficiency sector, two of which disclosed transaction details. 

To get a copy of the report, visit: http://bit.ly/MercomSGQ12018

About Mercom Capital Group

Mercom Capital Group, llc, is a global communications and research and consulting firm focused on cleantech. Mercom delivers market intelligence and funding and M&A reports covering Battery Storage, Smart Grid and Energy Efficiency, and Solar, and advises companies on new market entry, custom market intelligence and strategic decision-making. Mercom's communications division helps companies and financial institutions build powerful relationships with media, analysts, local communities, and strategic partners. About Mercom: http://www.mercomcapital.com. Mercom's clean energy reports: http://store.mercom.mercomcapital.com/page/. 

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Mercom Capital Group, llc, a global clean energy communications and consulting firm, released its report on funding and merger and acquisition (M&A) activity for the global solar sector in the first quarter of 2018. Total corporate funding (including venture capital funding, public market, and debt financing) into the solar sector in Q1 2018 fell 65 percent quarter-over-quarter (QoQ) to $2 billion from the $5.7 billion raised in Q4 2017. Year-over-year (YoY), Q1 2018 funding was 38 percent lower than the $3.2 billion raised in Q1 2017.

To learn more about the report, visit: http://bit.ly/MercomSolarQ12018

“After a strong fourth quarter in 2017, financial activity slowed again in Q1 2018 to the post-tariff announcement levels of last year as uncertainties and a lack of clarity in the markets took a toll on investments,” commented Raj Prabhu, CEO of Mercom Capital Group. “The bright spot during Q1 was a record-high number of solar project acquisitions, proving that solar power generation is a sought-after asset class.” 

Global VC funding (venture capital, private equity, and corporate venture capital) for the solar sector fell 75 percent QoQ to $161 million in 22 deals compared to the $639 million raised in 30 deals in Q4 2017. The amount raised was also lower YoY compared to the $588 million raised in 23 deals in Q1 2017. 

The majority of the VC funding raised in Q1 2018 went to solar downstream companies with $124.5 million in 18 deals.

The top VC deals in descending order included: $55 million raised by Off Grid Electric, $25 million raised by d.light design, $23 million secured by Solaria Corporation, $12.5 million raised by Renewable Properties, $11 million raised by Kiran Energy Solar, and M-KOPA’s $10 million deal. A total of 30 VC investors participated in solar funding in Q1 2018. 

Solar public market financing came to $103 million in four deals in Q1 2018, a steep decline QoQ from the $657 million raised in 10 deals in Q4 2017. It was also significantly lower YoY than Q1 2017 when $461 million was raised in 13 deals. Sky Energy had the only solar IPO in Q1 2018. 

Announced debt financing totaled $1.8 billion in 17 deals during the first quarter of 2018. In a QoQ comparison, 23 deals were announced in Q4 2017 for a total of $4.4 billion. YoY, $2.2 billion was raised in 25 deals in Q1 2017. Most of the debt raised in Q1 2018 was by solar downstream companies. 

Large-scale project funding announced in Q1 2018 totaled $2.7 billion in 58 deals, down from $3.7 billion in 49 deals announced in Q4 2017. In a YoY comparison, $2.6 billion was raised in 33 deals in Q1 2017.

Just one residential and commercial solar fund was announced in Q1 2018 (for $400 million), compared to $213 million raised in three funds in Q4 2017. During the same quarter of last year (Q1 2017), $630 million was raised in six funds. 

There were 19 solar M&A transactions announced in Q1 2018 compared to 13 transactions in Q4 2017 and 29 transactions in Q1 2017. Of the 19 total transactions in Q1 2018, 10 involved solar downstream companies. 

There were 80 large-scale solar project acquisitions (16 disclosed for $1.9 billion) in Q1 2018 compared to 67 transactions (26 disclosed for $3.7 billion) in Q4 2017. In a YoY comparison, 49 transactions (18 disclosed for $1.9 billion) were announced Q1 2017. About 7.7 GW of large-scale solar projects were acquired in Q1 2018 compared to 5.8 GW acquired in Q4 2017. There were 20 investment firms and funds that acquired 24 projects in Q1 2018, totaling 1.2 GW, followed by utilities and IPPs where 13 companies picked up 30 projects totaling 1.3 GW. Twelve Project developers acquired 14 projects for 3.4 GW during the quarter.

There were 328 companies and investors covered in this report. It is 87 pages in length, and contains 64 charts, graphs and tables.

To learn more about the report, visit: http://bit.ly/MercomSolarQ12018

About Mercom Capital Group

Mercom Capital Group, llc, is a global communications and consulting firm focused exclusively on clean energy and financial communications. Mercom’s consulting division advises cleantech companies on new market entry, custom market intelligence, and overall strategic decision making. Mercom’s consulting division also delivers highly respected industry market intelligence reports covering Solar Energy and Smart Grid technology. Our reports provide timely information on industry happenings and ahead-of-the-curve analysis for C-level decision makers. Mercom’s communications division helps clean energy companies and financial institutions build powerful relationships with media, analysts, government decision makers, communities, and strategic partners. For more information about Mercom Capital Group, visit: http://www.mercomcapital.com. To receive a copy of Mercom’s popular weekly market intelligence reports, visit: http://eepurl.com/cCZ6nT.

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Battery Storage companies secure $714 million; Smart Grid companies bring in $422 million; and Energy Efficiency companies receive $384 million

Mercom Capital Group, llc, a global clean energy research and communications firm, released its report on funding and mergers and acquisitions (M&A) activity for the Battery Storage, Smart Grid, and Energy Efficiency sectors for 2017. 

To get a copy of the report, visit: http://bit.ly/MercomSGQ42017

In 2017, a combined $1.5 billion was raised by Battery Storage, Smart Grid, and Energy Efficiency companies, an increase from the $1.3 billion raised in 2016.

Battery Storage

In 2017, VC funding into Battery Storage companies almost doubled to $714 million raised in 30 deals from the $365 million raised in 38 deals in 2016, largely due to the $400 million Microvast deal. Total corporate funding, including debt and public market financing, rose to $890 million compared to $540 million in 2016. 

Energy Storage Downstream companies received the most funding with $68 million followed by Lithium-based Battery companies with $65 million.

The top VC funded companies included: Microvast Power Systems with $400 million, Battery Energy Storage Solutions (BESS) with $66 million, Forsee Power brought in $65 million, Advanced Microgrid Solutions (AMS) raised $34 million, and Primus Power raised $32 million.

Eighty-six VC investors participated in Battery Storage deals in 2017 compared to 62 in 2016.

In 2017, announced debt and public market financing for Battery Storage companies remained steady at $177 million raised in 12 deals compared to $175 million generated by eight deals in 2016.

Three project funds totaling $446 million were announced in the Battery Storage category in 2017, compared to $820 million raised in 2016 in seven deals.

Nine Battery Storage project funding deals were announced in 2017 totaling nearly $2.1 billion. By comparison, just $33 million was raised in four deals in 2016.

There were six M&A transactions in the Battery Storage category in 2017, of which only two disclosed transaction amounts. In 2016 there were 11 M&A transactions, three of which disclosed transaction amounts.

Smart Grid

VC funding in the Smart Grid sector rose to $422 million in 45 deals in 2017, compared to $389 million raised in 42 deals in 2016. Total corporate funding, including debt and public market financing, came to $1.2 billion compared to $613 million in 2016.

The top VC funded companies in 2017 were ChargePoint, which brought in $82 million and $43 million in two separate deals, Actility which received $75 million, Brilliant which secured $21 million, and Particle and Urjanet each raising $20 million.

Eighty-eight investors funded Smart Grid companies in 2017, compared to 82 in 2016. Top VC investors in 2017 included: ABB Technology Ventures, Braemar Energy Ventures, Chrysalix Venture Capital, Clean Energy Finance Corporation, Energy Impact Partners, EnerTech Capital, GE Ventures, innogy, National Grid, Obvious Ventures, and Siemens.

Smart Charging of plug-in hybrid electric vehicle (PHEV), vehicle-to-grid (V2G) companies, had the largest share of VC funding in 2017 with $155 million in 10 deals, followed by Demand Response companies with $94 million in four deals.

In 2017, five debt and public market financing deals totaling $774 million were announced, compared to $224 million raised in five deals in 2016. There were no IPOs announced for Smart Grid companies in 2017.

There were 27 M&A transactions recorded in the Smart Grid sector (just seven of these deals disclosed transaction amounts) in 2017 totaling $2.5 billion. In 2016 there were 15 transactions (four disclosed) for $2.4 billion. The top disclosed transaction was the $1.1 billion acquisition of Aclara by Hubbell.

Efficiency

VC funding for the Energy Efficiency sector fell to $384 million in 38 deals in 2017 compared to $528 million in 33 deals in 2016. Total corporate funding, including debt and public market financing, was $3.3 billion, compared to $3.8 billion in 2016.

The top VC funded companies were View, which raised $100 million, followed by Kinestral Technologies with $65 million, RENEW Energy Partners with $40 million, Power Survey and Equipment brought in $24 million, and Stack Lighting with $16 million.

Efficient Home/Building companies captured the most funding with $172 million in five deals in 2017. A total of 51 investors participated in funding deals in 2017 compared to 72 investors in 2016. Energy Impact Partners was the most active investor in 2017. 

In 2017, debt and public market financing announced by Energy Efficiency companies fell to $2.9 billion in 16 deals compared to the $3.2 billion raised in 16 deals in 2016. 2017 saw seven Property Accessed Clean Energy (PACE) financing deals bring in more than $1.6 billion compared to 12 deals that brought in $2.3 billion in 2016. 

There were two securitization deals in 2017 for nearly $581 million compared to nine securitization deals for $1.8 billion in 2016. Securitization deals have now exceeded $4.5 billion in 24 deals since 2014. 

M&A activity for the Efficiency sector in 2017 dropped to 10 transactions, three of which disclosed transaction amounts. In 2016, there were 14 M&A transactions with five that disclosed transaction amounts. 

The largest disclosed transaction was the $526 million acquisition of LEDvance by a Chinese consortium consisting of IDG Capital, MLS, and Yiwu. 

To get a copy of the report, visit: http://bit.ly/MercomSGQ42017

About Mercom Capital Group

Mercom Capital Group, llc, is a global communications and research and consulting firm focused on cleantech. Mercom delivers market intelligence and funding and M&A reports covering Battery Storage, Smart Grid and Energy Efficiency, and Solar, and advises companies on new market entry, custom market intelligence and strategic decision-making. Mercom's communications division helps companies and financial institutions build powerful relationships with media, analysts, local communities, and strategic partners. About Mercom: http://www.mercomcapital.com. Mercom's clean energy reports: http://store.mercom.mercomcapital.com/page/.

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Mercom Capital Group, llc, a global clean energy communications and consulting firm, has released its annual report on funding and merger and acquisition (M&A) activity for the solar sector in 2017. 

Total global corporate funding into the solar sector, including venture capital/private equity (VC), debt financing, and public market financing raised came to $12.8 billion, a 41 percent increase compared to the $9.1 billion raised in 2016.  

To learn more about Mercom’s 2017 Solar Funding and M&A Report, visit: http://bit.ly/MercomSolarQ42017

"A strong fourth quarter pushed overall funding higher in 2017. Higher installation levels around the world, the lack of threat to the solar investment tax credit, lower than expected tariff recommendation by U.S. ITC, strong debt financing activity, and over a billion dollars in securitization deals helped the solar industry have a much better year in terms of financial activity compared to 2016. After several challenging years, most of the solar securities were up in 2017 reflecting overall positive sentiments around the solar industry even as several Chinese manufacturers decided to go private. Of course, all this could change swiftly if President Trump decides to impose higher tariffs in the trade case," commented Raj Prabhu, CEO and Co-Founder of Mercom Capital Group. 

Global VC investments came to $1.6 billion in 99 deals in 2017, up 30 percent from the $1.3 billion raised by 78 deals in 2016 - led by several large private equity deals in India.  

Solar downstream companies accounted for 85 percent of total VC funding in 2017, bringing in $1.4 billion of the total $1.6 billion raised. Thin-film companies brought in $106 million while service providers raised $47 million. 

Investments in PV technology companies came to $40 million and Balance of Systems (BoS) companies raised $36 million. The concentrated solar power (CSP) category raised $8 million and the concentrator photovoltaics (CPV) category received $6 million. 

The top VC/PE deals reported in 2017 included a deal for $200 million signed by Lightsource Renewable Energy. ReNew Power also had two deals of $200 million each, followed by Greenko Energy Holdings which raised $155 million. Hero Future Energies raised $125 million and CleanMax Solar raised $100 million. Overall, five of the top six solar VC funding deals in 2017 came from India.

There were 162 VC/PE investors that participated in funding rounds in 2017, with eight involved in multiple rounds: Engie, Avista Development, DSM Venturing, InnoEnergy, Innogy, International Finance Corporation (IFC), Shell, and Techstars. 

Public market financing was flat in 2017 to $1.7 billion raised in 33 deals from $1.8 billion raised in 27 deals in 2016. Three IPOs were logged during the year that raised a combined total of $363 million for Canadian Solar Infrastructure Fund, New Energy Solar Fund, and Clenergy. 

Announced debt financing in 2017 surged to $9.5 billion compared to $6 billion in 2016. There were six securitization deals in 2017 totaling $1.3 billion. Securitization deals surpassed the $1 billion for the  year, a first. 

Large-scale project funding announced in 2017 reached a $14 billion raised in 167 deals, compared to $9.4 billion raised in 133 deals during 2016. A total of 161 investors funded about 20.5 GW of large-scale solar projects in 2017 compared to 5.9 GW funded by 153 investors in 2016. 

The top investors in large-scale projects included Clean Energy Finance Corporation (CEFC), which invested in 13 projects, followed by Santander with eight deals, and Commonwealth Bank of Australia and Siemens Financial Services with six deals each. 

$2.4 billion was raised by 16 residential and commercial solar project funds in 2017 which was down 50 percent compared to $4.9 billion raised by 30 funds in 2016. The top fundraisers were: Sunlight Financial, Sunnova, Solar Mosaic, SolarCity, and Spruce Finance. Since 2009, solar residential and commercial firms offering leases, PPAs, and loans have raised more than $24.8 billion in lease and loan funds. 

There were 71 corporate M&A transactions in the solar sector in 2017, up slightly from 68 transactions recorded in 2016. Solar downstream companies were involved in 51 of these transactions. Engie acquired three companies while BayWa, Brookfield Asset Management, Horizon Solar Power, Siva Power, Solar Spectrum, and Sonnedix acquired two companies each. The largest and the most notable transaction in 2017 was the $1.6 billion acquisition of FTP Power (sPower) by AES and Alberta Investment Management (AIMCo) from Fir Tree Partners.

Project acquisitions jumped up 67 percent as a record 228 large-scale solar projects with a combined capacity of more than 20.4 GW were acquired in 2017, compared to 2016 when 12.2 GW changed hands in 218 transactions. 

Mercom also tracked 187 large-scale project announcements across the globe that totaled 10.6 GW in Q4 2017 and 922 large-scale project announcements totaling 50.1 GW for all of 2017.

To learn more about Mercom’s 2017 Solar Funding and M&A Report, visit: http://bit.ly/MercomSolarQ42017

 

About Mercom Capital Group

Mercom Capital Group, llc, is a global communications and consulting firm focused exclusively on clean energy and financial communications. Mercom’s consulting division advises cleantech companies on new market entry, custom market intelligence, and overall strategic decision making. Mercom’s consulting division also delivers highly respected industry market intelligence reports covering Solar Energy and Smart Grid. Our reports provide timely industry happenings and ahead-of-the-curve analysis specifically for C-level decision making. Mercom’s communications division helps clean energy companies and financial institutions build powerful relationships with media, analysts, government decision makers, local communities, and strategic partners. For more information about Mercom Capital Group, visit: http://www.mercomcapital.com. To get a copy of Mercom’s popular market intelligence reports, visit: http://eepurl.com/cCZ6nT.

Mercom Capital Group, llc, a global clean energy communications and consulting firm, has released its latest quarterly report on funding and merger and acquisition (M&A) activity for the Battery Storage, Smart Grid, and Energy Efficiency sectors during the third quarter and first nine months of 2017. 

To get a copy of the report, visit: http://bit.ly/MercomSGQ32017

Mercom found that, in the first nine months (9M) of 2017, $1.23 billion was raised by Battery Storage, Smart Grid, and Efficiency companies, up from $910 million raised in 9M 2016.

Battery Storage

In Q3 2017, VC funding for Battery Storage companies dropped to $83 million in seven deals compared to $422 million raised in 10 deals during Q2 2017. A year earlier, $30 million was raised in nine deals in Q3 2016. In 9M 2017, $563 million was raised in 25 deals compared to $209 million raised in 29 deals in 9M 2016. 

The top VC funded Battery Storage companies in Q3 2017 were: Advanced Microgrid Solutions, which raised $34 million from Energy Impact Partners, Southern Company, DBL Partners, GE Ventures, AGL Energy, Macquarie Capital, and former California Governor Arnold Schwarzenegger; Romeo Power, which raised $30 million; and Gridtential Energy, which secured $11 million from 1955 Capital, East Penn Manufacturing, Crown Battery Manufacturing, Leoch International, Power-Sonic, The Roda Group, and the company's chairman, Ray Kubis. 

In all, 16 investors participated in Battery Storage funding in Q3 2017 with Energy Storage Downstream companies raising the most. 

The third quarter saw two debt and public market financing deals in Battery Storage totaling $45 million compared to $107 million raised in seven deals in Q2 2017. In 9M 2017, $174 million was raised in 11 deals compared to six deals that brought in $120 million in 9M 2016. 

There was one M&A transaction involving a Battery Storage company in Q3 2017 compared to three M&A transactions in Q2 2017. In the first nine months of 2017, there were five transactions (two disclosed), down from nine transactions (two disclosed) in 9M 2016. Two Storage projects were also acquired in Q3 2017.

Smart Grid

VC funding for Smart Grid companies in Q3 2017 totaled $76 million in 14 deals, compared to $139 million raised in eight deals in Q2 2017. In a year-over-year (YoY) comparison, $11 million was raised in seven deals in Q3 2016. In 9M 2017, $380 million was raised in 36 deals compared to $343 million raised in the same number of deals in 9M 2016. 

Top VC funded Smart Grid companies included: Particle, which secured $20 million from Spark Capital, Qualcomm Ventures, and previous investors; INTEREL, which raised $11.9 million in funding from Jolt Capital; Roost, which received $10.4 million in funding from Aviva Ventures, Desjardins Insurance, and Fosun RZ Capital; Tritium, which secured $8 million from entrepreneur Brian Flannery; and Innowatts, which raised $6 million from Shell Technology Ventures, Iberdrola Ventures - Perseo, and Energy & Environment Investment. 

In all, 28 investors participated in Smart Grid VC funding rounds in Q3 2017, with SG Communications companies raising the most. 

A total of $11 million was raised in one debt financing deal in Q3 2017 compared to the $9 million raised in one deal in Q2 2017. In 9M 2017, $20 million was raised in two deals compared to $217 million raised in four deals in 9M 2016. 

There were six M&A transactions (two disclosed) in Q3 2017. In Q2 2017, there were six transactions (two disclosed). In 9M 2017, there were 19 transactions (five disclosed) compared to 13 transactions (four disclosed) in 9M 2016. 

Efficiency

VC funding raised by Energy Efficiency companies in Q3 2017 came to $47 million in eight deals compared to $29 million raised in six deals in Q2 2017. In a YoY comparison, $61 million was raised in five deals in Q3 2016. In the first nine months of 2017, $289 million was raised by Energy Efficiency companies in 28 deals compared to $358 million raised in the same number of deals in 9M 2016. 

The Top VC deals in the efficiency category included: Power Survey and Equipment, which received $24 million in funding from EnerTech Capital, Investissement Quebec, Cycle Capital Management, Fonds de solidarite FTQ, and BDC Capital; Corvi, which received a $10 million strategic investment from Hero Enterprise; and Deco Lighting, which secured $8 million in funding from Siena Funding. 

In all, nine investors participated in VC funding in Q3 2017. Within the sector, Efficiency Components companies brought in the most funding. 

Announced debt and public market financing for Energy Efficiency technologies plunged to $615 million in four deals in Q3 2017 compared to the $1.4 billion raised in six deals in Q2 2017. In 9M 2017, $2.3 billion was raised in 13 deals compared to the same amount raised in 11 deals in 9M 2016. 

There was one Property Accessed Clean Energy (PACE) financing deal in Q3 2017 for $205 million versus three deals in Q2 2017 that raised $668 million. In 9M 2017, $873 million was raised in four deals compared to the $1.3 billion raised in six deals in 9M 2016. 

There were two M&A transactions (one disclosed) involving Energy Efficiency companies in Q3 2017, up from just one undisclosed transaction in Q2 2017. For the first nine months of 2017, there were seven transactions (three disclosed), down from 12 transactions in 9M 2016 (four disclosed).

To get a copy of the report, visit: http://bit.ly/MercomSGQ32017

 

About Mercom Capital Group

Mercom Capital Group, llc, is a global communications and research and consulting firm focused on cleantech. Mercom delivers market intelligence and funding and M&A reports covering Battery Storage, Smart Grid, and Energy Efficiency and Solar and advises companies on new market entry, custom market intelligence and strategic decision-making. Mercom's communications division helps companies and financial institutions build powerful relationships with media, analysts, local communities, and strategic partners. About Mercom: http://www.mercomcapital.com. Mercom's clean energy reports: http://store.mercom.mercomcapital.com/page/.

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