Powering the Future: The Role of Israeli Innovation in Advancing Energy Tech 

By Alon Turkaspa, Climate Sector Lead

The global energy and climate crisis means that we need innovative technological solutions – and Israel’s energy tech ecosystem is answering this call, driving significant advancements that contribute to global sustainability efforts.

We have recently released our latest Energy Tech Landscape Map, showcasing the remarkable growth and dynamic innovation in Israel’s energy tech sector. This map highlights the sector’s evolution and emphasizes Israel’s unique role in driving deep tech advancements and leveraging its dense talent pool.

Fueling the Future 

The energy tech ecosystem has witnessed huge growth, with over  70 startups emerging since 2021, leading to sustained innovation and expansion. Today, the sector boasts hundreds of companies, with approximately 40% advancing to later-stage development and even commercialization levels, marking new investment options and opportunities for FOAK (first-of-a-kind) project investments.

Generation technologies are advancing the adoption of renewable energy sources like wind, solar, and hydro, replacing fossil fuels. Energy storage solutions like electrochemical batteries, pumped hydro, and thermal storage enable the transition to renewable energy, which is currently available intermittently. 

Behind the Meter involves consumer-focused technologies that optimize energy consumption for appliances, including advancements like smart buildings. 

Transmission and Distribution technologies enhance the delivery of electricity through optimized grids and microgrids for better renewable energy integration. In contrast, Hydrogen production from renewable sources offers clean energy for transportation, power generation, and industrial processes. 

Finally, OT Cybersecurity innovation protects energy sector operational technologies from cyber threats using blockchain and AI.

Israel’s Energy Tech: Resilience and Innovation

Israel’s high-tech sector has shown remarkable resilience, especially during challenging times. Despite global uncertainties, Israeli startups thrive, driven by innovation and a robust, supportive ecosystem. However, it is important to note that startups remain highly dependent on international private funding, which necessitates maintaining trust and demonstrating that Israeli tech delivers, no matter what. 

The sector has proven its ability to operate and deliver even during complicated security conditions, propelling the global energy transition and ensuring a safer, more sustainable tomorrow.

As the race for sustainable energy heats up, Israel’s innovative edge cuts through the noise. Israeli entrepreneurs are unleashing breakthrough solutions, shaking up every corner of the energy value chain and driving a powerful wave of change across the global energy tech landscape.

Economic Trends in Energy Tech

In the last 12 months, the sector has raised $403M across 54 rounds, with 11 rounds exceeding $10M. The largest round, amounting to $105M, is evidence of the significant investments pouring into energy tech. Additionally, 60% of these companies are in early-stage growth, while 40% are late-stage/mature. This shows that the ecosystem is maturing and offering ready solutions to be scaled globally – starting today. 

Notably, 70% of the 300 companies in the Israeli energy tech sector were established in the last decade, with ten new companies created in the past year alone.

Energy & Sustainability

These advancements substantially contribute to sustainability, including reducing carbon emissions, improving energy efficiency, and promoting renewable resources. The environmental and economic benefits are profound, driving both local and global progress toward a better future.

The potential for energy tech to drive significant change is immense. Technologies like CCUS, hydrogen fuel cells, and smart grids are transforming the energy landscape and are crucial in the global fight against climate change. 

Leveraging these advancements can lead to sustainable economic growth and stability. While we celebrate the achievements and growth within the energy tech sector, we also recognize the broader impact these technologies can have on sectors well beyond energy.

By focusing on these trending issues and highlighting the broader implications of energy tech innovation in our interactive landscape map, we aim to provide a comprehensive view of this sector’s importance and potential. 

Want to learn more about the sector?

Join us in harnessing the power of innovation to drive sustainable solutions for a better future while uncovering business opportunities; delve into the 2024 Energy Tech Landscape Map for all the data and insights.

The map is fully hyperlinked, with every startup linked to its profile on the Finder page. Additionally, each subcategory is linked to a useful list of all startups within that category and in-depth market data analytics on that subsector. We urge you to enjoy the map and the full capabilities of the Finder platform, which is free of charge for anyone who registers.