Smart Grid Finance Rundown: VCs and Congress Rock the Grid

In 2004, the term “Smart Grid” didn’t really exist – despite the Demand Response successes of now-public firms like Comverge and EnerNoc. 

Fast forward five years and we’ve seen hundreds of millions of dollars of VC investment flow into a wide range of smart grid startups, essentially creating a new market and ecosystem from power generators to home networks. This year has gotten off to a slow investment start but that will change in the coming quarters.

Smart grid technology, investment, and infrastructure must emerge if the states are to meet their ambitious Renewable Portfolio Standards.

But beware. As Stephen Lee, the Senior Technology Executive for Power Delivery and Utilization at EPRI, the Electric Power Research Institute warns: Smart grid players must avoid the hype. “We are at the peak of the smart grid hype cycle. When Obama and Biden talk about the smart grid you know it’s being hyped,” Lee said.

2008 and 2009 Smart Grid M&A

In today’s difficult business environment we expect to see lots more M&A activity and consolidation.