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Total corporate funding, including venture capital funding, public market, and debt financing, in first half (H1) of 2021 was at $13.5 billion compared to $4.6 billion in H1 2020, a 193 per cent year-on-year (YoY) increase, according to a report by Mercom Capital Group.
“Corporate M&A activity was up significantly with solar developers expanding their pipelines, oil and gas companies diversifying into renewables, and funds buying up renewable assets. Solar project acquisitions reached a record high in Q2,” said Raj Prabhu, CEO of Mercom Capital Group.
In H1 2021, VC funding was 680 per cent higher, with $1.6 billion raised in 26 deals compared to the $210 million that went into 14 deals in the first half of 2020. This includes Loanpal’s $800 million deal in the first quarter of 2021.
Also read: The Great Indian Bustard and the country’s green energy goals
The top VC deals in H1 2021 include $800 million by Loanpal, $250 million by Aurora Solar, $127 million by Intersect Power, $125 million by Fourth Partner Energy, and $108 million by Heliogen.
Solar public market financing in H1 2021 was 386 per cent higher, with $3.7 billion raised in 13 deals compared to $758 million raised in six deals in H1 2020. Shoals Technologies Group’s $2.2 billion IPO was a big part of the increase in public market financing activity in H1 2021.
In H1 2021, there were 54 solar corporate M&A transactions compared to 25 transactions in H1 2020. Adani Green Energy agreed to acquire a 100 per cent stake in SB Energy India from Soft Bank Group (80 per cent) and Bharti Group (20 per cent).
The transaction values SB Energy India at an enterprise valuation of about $3.5 billion. SB Energy India has a renewable portfolio of 4,954 MW across four States in India.
Also read: US solar firm CubicPV targets India for $1 billion investment
Solar project acquisitions in H1 2021 reached 39.3 GW compared to 14.7 GW acquired in the same period last year. ReNew Power, a renewable energy project developer, raised $585 million through green bonds.
Fortum signed an agreement to sell the 250 MW Pavagada II and the 250 MW Rajasthan solar projects in India to Actis. Denmark’s IFU and United Nations Office for Project Services’ S3i acquired 39 per cent and 10 per cent stake respectively in ACME Solar’s 250 MW solar project in Rajasthan.
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