Corporate funding in solar sector up 21% at $8.1 b in Q1 2021: Mercom Capital

Our Bureau Hyderabad | Updated on April 19, 2021

This the result of higher debt and public market financing activity in the quarter

Total corporate funding, including venture capital funding, public market, and debt financing, in the solar sector in Q1 2021, added up to to $8.1 billion in 36 deals, a 21 per cent increase compared to $6.7 billion raised in 43 deals in Q4 2020.

The increase in corporate funding was primarily due to higher debt and public market financing activity in the first quarter of 2021, according to a Mercom Capital report.

Also read: Renewable energy sector misses target for 5th year in a row

“Financing activity in the solar sector started strong in 2021 with Q1 numbers up substantially year-over-year. Even though solar stocks lost some of their spark in the first quarter after an unprecedented run in 2020, a big IPO and record securitisation activity lifted overall fund-raising totals. Solar assets continue to be in great demand with almost 15 GW of projects acquired in Q1,” said Raj Prabhu, CEO of Mercom Capital Group.

Global VC funding for the solar sector in Q1 2021 stood at $1 billion in 14 deals, a 33 per cent increase compared to $773 million raised in 12 deals in Q4 2020.

Of the $1 billion in VC funding raised in 14 deals during Q1 2021, 96 per cent went to solar downstream companies with $990 million in 10 deals. In Q4 2020, solar downstream companies raised $748 million in six deals (97 per cent of total VC funding raised).

Adani Green Energy raised a $1.35-billion debt package for its under-construction renewable asset portfolio in India.

Total Eren and EDF Renewables announced that EDEN Renewables India, their equally-owned joint venture dedicated to large-scale Indian solar PV projects, secured financial closure for its 450 MW SECI III solar PV project, with a group of three major international banks.

Sterling and Wilson International Solar FZCO (SWFZCO) acquired the equity share capital of GCO Solar, an Australia-based EPC contractor.

Adani Green Energy signed a share purchase agreement for the acquisition of 100 per cent stake in two special purpose vehicles holding 75 MW operating solar projects of Sterling & Wilson, a Shapoorji Pallonji Group company, for ₹446 crore ($61.45 million).

Adani Green acquired 100 per cent stake in a special purpose vehicle (SPV) holding a 50 MW operating solar project of Toronto-headquartered SkyPower Global. In addition, it acquired 100 per cent share capital and all the securities of Spinel Energy & Infrastructure Limited from Hindustan Cleanenergy and Peridot Power Ventures at an enterprise value of ₹133 crore (~$18.2 million). SEIL has a 20 MW solar project in operation in Mahoba, Uttar Pradesh, India.

Bharti Airtel acquired an additional 3.3 per cent stake in the SPV Avaada MHBuldhana to procure 21.32 MW of solar power.

Published on April 19, 2021

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