• Bhubaneswar India
  • Contact+ 91-9938772605
  • Mon - Sat : 10:00AM - 6:00PM

Tag: Raj Prabhu

Total Corporate Funding for Solar Sector Comes in at dollar16.6 Billion in 1H 2024

July 18, 2024 – Mercom Capital Group, a global clean energy communications and consulting firm, released its report on funding and merger and acquisition (M&A) activity for the solar sector in the second quarter (Q2) and first half (1H) of 2024.

Total corporate funding, including venture capital/private equity (VC) funding, public market, and debt financing, in 1H 2024 totaled $16.6 billion, 10% lower year-over-year (YoY) compared to the $18.5 billion raised in 1H 2023. The number of deals increased 9% YoY, with 87 deals in 1H 2024 compared to 80 during the same period last year.

“Financing activity in the solar sector remains restrained despite tailwinds from the Inflation Reduction Act and favorable global policies. High interest rates, an uncertain rate trajectory and timeline, increasing trade barriers, supply chain challenges, concerns about the U.S. presidential election’s impact on the sector, and constantly evolving trade policies have created an unpredictable and uncertain climate. This has slowed down development, investments, and decision-making,” said Raj Prabhu, CEO of Mercom Capital Group.

In 1H 2024, VC funding activity decreased 29% YoY, with $2.7 billion raised in 29 deals compared to $3.8 billion from 33 deals in the first half of 2023. However, in Q2 2024, global VC funding activity rose 29% year over year (YoY), with $2.2 billion in 16 deals compared to $1.7 billion raised in 15 deals in Q2 2023.

Solar downstream companies led financing activity with 24 deals worth $2.5 billion in 1H 2024.

The top VC deals in 1H 2024 were $650 million raised by Pine Gate Renewables, $520 million raised by Nexamp, $400 million raised by Doral Renewables, $325 million raised by MN8 Energy, and $200 million raised by ENVIRIA.

A total of 96 VC investors participated in solar funding in 1H 2024.

Solar public market financing in 1H 2024 totaled $1.7 billion in eight deals, 75% lower than $6.7 billion in 14 deals in 1H 2023.

Solar debt financing activity in 1H 2024 reached $12.2 billion in 50 deals, a 53% increase compared to 1H 2023 when $8 billion was raised in 33 deals. The first half of 2024 was the highest 1H total recorded in a decade for debt financing.

In 1H 2024, eight securitization deals totaled $2 billion, a 5% increase YoY compared to $1.9 billion raised in seven deals in 1H 2023.

In the first half of 2024, there were 40 solar M&A transactions, compared to 48 in the first half of 2023. The largest deal was by Brookfield Asset Management, an asset management firm along with institutional partners including Brookfield Renewable and Singapore’s Temasek Holdings, which agreed to acquire a 53.12% stake in Neoen, a solar, wind, and energy storage project developer, for $6.54 billion.

In 1H 2024, 113 solar project acquisitions totaling 18.5 GW were transacted, compared to 116 project acquisitions totaling 25.5 GW in 1H 2023.

Project developers and independent power producers (IPPs) were the most active acquirers of solar projects in Q2 2024, accounting for 3.4 GW, followed by other companies (insurance providers, pension funds, energy trading companies, industrial conglomerates, and IT firms) with 1.6 GW. Utilities acquired a total of 1.3 GW, followed by 1.2 GW acquired by investment firms, and oil and gas companies acquired 250 MW.

India Witnessed Record Quarterly Solar Installations with 10 GW

May 24, 2024 – India installed over 10 gigawatts (GW) of solar capacity in the first quarter (Q1) of 2024, the highest amount to date for a quarter. Solar capacity additions rose nearly 400% compared to over 2 GW installed in Q1 2023, according to the recently released Q1 2024 India Solar Market Update by Mercom India Research.

Solar capacity additions were up 414% compared to nearly 2 GW added in Q4 2023.

Large-scale solar accounted for 9.7 GW, including 1.8 GW of open access solar projects. Solar capacity additions for large-scale projects rose 524% quarter-over-quarter (QoQ) and 534% year-over-year (YoY).

In Q1 2024, solar project installations surged due to a variety of factors, including the commissioning of projects that were delayed from earlier quarters. Developers capitalized on falling module prices, suspension of the Approved List of Models and Manufacturers (ALMM) order, and grid connectivity approvals of solar projects previously hindered by the habitat of Great Indian Bustard (GIB).

“There is a substantial pipeline of large-scale projects scheduled for 2024, positioning India for a record-breaking year by a significant margin. Assuming stability in policy and supply chains, and if government agencies continue to auction projects and meet the set targets, India is poised to be among the top three solar markets globally”, commented Raj Prabhu, CEO at Mercom Capital Group.

In Q1 2024, India added 15.2 GW of new power capacity. Solar power accounted for 66% of the new capacity additions during the quarter.

Rajasthan and Gujarat led large-scale solar installations in the quarter, accounting for 38% and 35% of the capacity additions. Madhya Pradesh ranked third, with 8%.

As of March 2024, India’s cumulative installed solar capacity stood at 82 GW. Solar energy accounted for 18.5% of India’s total installed power capacity and 43% of the total installed renewable energy capacity.

At the end of Q1 2024, Rajasthan had the highest cumulative installed large-scale solar capacity, accounting for 29% of the country’s total installations. Gujarat and Karnataka followed with 14% each.

India’s large-scale solar project pipeline stood at 143 GW, with another 93 GW of projects tendered and pending auction at the end of Q1 2024.

The average cost of large-scale solar projects fell 7% QoQ and 28% YoY, significantly improving the internal rate of return on these projects.

Tenders totaling 30.7 GW were announced during the quarter, up 122% YoY and 92% QoQ. In Q1 2024, 25 GW of solar projects were auctioned, up 229% QoQ and 2,957% YoY.

Key Highlights from Mercom India Research’s Q1 2024 India Solar Market Update:

  • India added over 10 GW of solar capacity in Q1 2024, up 414% QoQ and 400% YoY
  • Large-scale solar accounted for 96% of the quarterly installations, while rooftop solar contributed the rest
  • Rajasthan, Gujarat, and Madhya Pradesh led the quarterly large-scale solar capacity additions
  • India’s cumulative installed solar capacity stood at 82 GW as of March 2024.
  • India’s large-scale solar project pipeline stood at 143 GW, with another 93 GW of projects tendered and pending auction
  • In Q1 2024, tenders totaling 30.7 GW were announced, up 92% QoQ and 122% YoY
  • Solar projects amounting to 25 GW were auctioned in Q1 2024, up 229% QoQ and 2,957% YoY