Investment trends in clean tech energy - Rafi Musher (CEO - Stax Inc.)
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Investment trends in
clean tech energy
Rafi Musher (CEO – Stax Inc.)
YTD data for 2021 indicates total investments for this year should surpass
prior years
U.S. Investments in Renewable Energy U.S. Investments in Renewable Energy
$90.00 ($ B) (Number of Deals)
1023 1045 1109 1070 1069 602
$80.00 $76.4B 1200
$73.5B
$69.5B $1.3B
7
$70.00
7 13
1000 11
$2.5B 15 267
$15.8B 228 240
241
269
$60.00
$39.2B 800
$50.00
$17.8B 251 263
$42.3B
$45.0B $41.6B 246 294
$39.0B
$1.1B 234
$40.00 600 IPO/ SPAC
< $100M $6.0B IPO/ SPAC 13
139 Corp Aq. /
$15.8B M&A
$15.9B Corp Aq. /
$12.5B
$30.00
$25.9B M&A 400 Private
169 Equity
$28.3B
$20.00
$7.1B Private 584 572
547 522
Equity 505
$17.1B $21.4B 200
$18.8B
Venture
$10.00
Venture 281
$16.0B Capital
$14.0B Capital
$7.5B
$5.0B $4.0B $4.1B
$0.00 0
2016 2017 2018 2019 2020 2021* 2016 2017 2018 2019 2020 2021*
Source: Pitchbook 2021* - Values are YTD (3rd June 2021) and data is typically delayed
U.S. Clean Energy VC Deals by $ Invested
(2016 – 2021*)
Diving into VC & PE
An average of ~78% is Late Stage VC
• PE’s have extensively focused on Energy Generation investments while Late Stage VCs have
focused on the EV Market.
Distribution of Investments by Category (2016 – 2021*)
43%
67% 70%
77% 35%
80%
88% 88% 32%
24%
18%
16%
24% 14% 13% 14%
26%
11% 11% 10% 9%
18% 7% 7% 7%
16% 6%
4% 4% 3% 3%
3% 2% 2%
10% 11%
4% 9% 4% 5% 2% 1% Alternative Automotive Equipment, Energy Storage B2B Services Software Aerospace and Other
Energy Parts & (Energy) Defense
2016 2017 2018 2019 2020 2021 Production Acessories
Seed Early stage VC Later stage VC
Early Stage Late Stage Private Equity
Source: Pitchbook 2021* - Values are YTD (3rd June 2021) and data is typically delayedChanges in the Power Market that you all know: New
players, new business models create opportunities
Traditional models needed the Now - everyone can sell to everyone and buy from almost anyone.
utility – with a known set of
customers and intermediaries (e.g.
EE/ESCOs). • Distributed generation and storage: More owners, more sellers, and faster innovation to
build out the various platforms.
• FERC 2222 Eases more sellers entering the energy market.
• Emerging customer options and business models, "How much I own (my generation) vs
buy, energy as a service, etc." Am I profiting off the energy itself, or managing the load or
assets for you?
Traditional Power
Generation • For each model, there are different investors.
Transmission &
Distribution Demand-side Management
Decentralized
Energy
Storage
Commercial & Residential own Generation & Consumption At home or in
virtual power
Commercial & plants
Residential
ConsumptionTech is striving to be 100% sustainable and, buying its own
Traditional energy players bringing more capital and demand
generation, accelerating the industry.
for goods, tech and services to deliver these.
While promoting consumer and commercial adoption seeing
While promoting/selling clean energy in the EV market.
the play for, and selling energy management as a service.
• ~35% of all deals since 2018, in Renewables & • Amazon Largest corporate buyer of renewable
Energy Management. energy, globally.
• 2030 Shell goal ~50M households and charge 2.5M • 206 renewable energy projects: 71 utility-scale wind
EVs annually from Renewables. and solar projects +135 solar rooftops on facilities.
• 2019 acquired Greenlots as a retail play to the US EV • Promoting products for the home energy
charging market monitoring and management via Alexa-energy.
• In 2020 again matched 100% of its global electricity
use with purchases of renewable energy.
• By 2030, aims to operate on 24/7 carbon-free
• May 2021, BP acquired 9GW of Solar Development
energy and add 5 GW of carbon-free energy.
projects across 12 U.S. states, working toward
accumulating 20GW of renewable energy • Nest and Ohm Connect for consumers, MESA for
generation by 2025 commercial customers.
• Chargemaster is the end-run to customer play.
Top signers of corporate PPAs (Cumulative 2007–2020)
All the companies on this page, need to buy other companies on 8,000 MW 6,300 MW 5,800MW 2900MW 2700MW
their journey.New players are working across the energy spectrum and evolving go-to-
market models, which could one day tap EE funds
• Large Scale Strategic • Hold-co, with both tech capabilities • Newly classified as energy provider?
As BP, Shell, ENI - and ability for large scale
development financing.
• Moving from majority hydrocarbon
production, to sourcing their own clean • Generac Holdings, manufacturer of
energy. • Alphabet’s Sidewalk Labs + Ontario power generators, acquired Enbala
Teachers in 2019: Creating the Power Networks, a distributed energy
• Buying/building new form of distribution investment holding company Sidewalk resource (DER) software platform in
at the end-customer with charging Infrastructure Partners (SIP). October 2020.
stations.
• Cannibalizing their own market rather • “Generac’s Grid 2.0 opportunity” is to
than letting someone else do it. • SIP invested $100M into OhmConnect
a home management solution provider, provide DER/Virtual Power Network, as
• Creating their own loop with the best branding themselves as having the it could now be a virtual powerplant,
parts of the value chain, leveraging the largest NA virtual power plant, Resi- with regional and national scale. (Nov.
complicated transmission/permitting of Station, with a 550MW goal. Generac Presentation).
others.
• Mesa is a Sidewalk Labs offering
providing full office monitoring and
device by device management.Global Expectations of the EV Market
Current 2025E 2030E
Combustion
$1,771B $1,679B $1,073B
Engine Vehicle
Revenues
EV Revenues $486B $1,158B
$182B
Software
Revenues $322B
$1,885B
N.M
Source: UBSThe lead up to 2021
Investments in renewable power generation have continued to grow.
U.S. Investments in the Clean Energy
Transition (2015 – 2020)
The U.S. Solar & Wind
$96.0B Accounted for Technologies ~$100M
$85.0B
~20% of accounted for
/year
$69.0B
$79.0B
Global Investment 99%* of is invested in
in Clean Energy in renewable Energy Hydrogen cell
$61.0B
2020 Investments technologies
$49.0B
The levelized cost Gross IRRs for U.S. Onshore wind
of PV Solar Power Smart Grids sector installed
has fallen averaged at
~17GW of
~ 82% over
32.3% while
Energy storage capacity in 2020—
the past decade hovered at its highest ever in
2015 2016 2017 2018 2019 2020
to 2020 ~29.2% a year.
*Not considering large hydropower and battery storage~Appendix~
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