February 18, 2021: Corporate funding for battery storage, smart grid and energy efficiency rocketed by 112% to $8.1 billion in 2020 compared with $3.8 billion in 2019, a February report by Mercom Capital says.
The battery storage sector saw a 136% rise in corporate funding, with $6.6 billion in 54 deals, although venture capital funding for battery firms was down $0.2 billion from last year’s $1.7 billion, it said.
Lithium-ion battery technology was the clear winner, receiving VC funding of $649 million, with solid state batteries and flow batteries also getting a share of the cake.
Despite shaving off 19% from its earlier forecasts for energy storage installations this year because of the pandemic, Wood Mackenzie still said 2020 had broken records for deployment.
Looking to 2021, market analysts at IHS Markit forecast that the global market for energy storage will more than double, with 10GW of installations compared with 4.5GW last year, dominated by the US.
Up to 2025, the energy storage market is expected to grow at a CAGR of around 24.4%, says Mordor Intelligence.
“Factors such as a growing renewable energy sector, supportive government policies and schemes for energy storage systems, and improving energy storage economies, are expected to be the major drivers for the market in the coming years,” it says.
Mordor warned that EU legislation could restrain market growth because ambiguity was putting network operators off.
The commercial and industrial sector would increasingly seek out storage options as it increased the amount of renewable power generation it was using, the report says.