Welcome to a new series of Momenta Short Takes. These are short pieces that come after the Deep Dive, which provided details on key dynamics and forces shaping the disruption of different sectors. These Short Takes are to give you a "pulse check" on the current state of the market, to explore different aspects of the market evolution, and why it’s relevant.
As we discussed in our Deep Dive, the energy sector is poised for fundamental transformation with the transition away from carbon based fuels to clean generation – solar, wind and other sources – combined with cheaper energy storage, transforming the nature of the grid, the economics of the industry and the impact on society and environment.The energy industry is one of the largest industries globally – according to most estimates, the oil and gas drilling sector currently makes up something between 2% and 3% of the global economy.Given the immense global reach and scale, disruption is unlikely to occur quickly.
Total investment in clean energy technologies declined slightly in 2018 according to Bloomberg New Energy Finance. Global clean energy investment in 2018 was $332.1 billion, declining 8% from 2017.This is a reflection of the declining cost of solar panels; solar investments dropped by 24% despite solar additions exceeding 100 GigaWatt for the first time in a single year.
Investments in batteries, electric vehicle manufacturing point to the future
Previously, we have discussed how the transition to clean energy, rise of autonomous technologies and adoption of electric vehicles will transform the landscape of energy and transportation.Beyond venture investment there’s significant corporate commitments into manufacturing and production.
While traditional VC investments are improving, there’s encouraging movement around seed stage investment – with new incubators such as Powerhousecoming to market. Additionally there are new players in the market looking to consolidate the industry, including billionaire Patrick Soon-Shiong who has acquired Fluidic and Sharp SmartStorage in an effort to remake the global energy system.
The sector remains active for innovation and funding, as a quick glance at the Cleantech 100shows.For innovators looking to participate in, and shape the global disruption and transformation of energy and transportation, there are many options at hand for funding.
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