Periods of energy upheaval, such as the one we are currently experiencing, provide an opportunity for disruptive innovations. A helping hand for clean energy start-ups can assist respond to the present energy crisis while simultaneously hastening progress toward climate goals. A new IEA research, How Governments Support Clean Energy Start-Ups, issued March 14, provides a timely examination of the various tactics used in nations throughout the world as they aim to be home to the next Tesla, BYD, or Vestas.
Money is now being poured into little businesses with huge ideas for upgrading our energy infrastructure and lowering greenhouse gas emissions. Since the beginning of 2022, innovators such as Addionics, Evage, H2Pro, Kula Bio, and PassiveLogic have each raised more than USD 25 million, says IEA. New technologies are emerging from a diverse spectrum of research initiatives and countries. Digital, electronic, consumer-focused, and modular energy solutions are emerging. Some of the world’s smartest and most innovative minds are hard at work laying the groundwork for tomorrow’s clean energy system.
In many cases, government policies and programs have established the groundwork for success in this sector, which is also known as “cleantech” or, more recently, “climate tech.” Since the Paris Agreement was reached in 2015, public sector assistance to help start-ups bring novel clean energy technology to market has increased dramatically.
These measures are critical not because public employees are good alternatives for venture capitalists, but because governments provide a variety of unique resources that energy technology start-ups require for success. The new IEA report illustrates the manner in which governments have intervened, based on 14 specific national case studies and 23 in-depth interviews. This includes, for example, offering access to patient finance providers and world-class laboratories, mentorship and peer-to-peer networking, and focusing on innovations or groups who may face additional barriers to entry, such as female entrepreneurs.
The examples in the new research come from a diverse variety of nations, including Chile, India, Morocco, and Singapore, as well as Canada, Germany, Norway, Sweden, the United Kingdom, the United States, and others.