The total global solar power sector, including the Indian market, has snagged a total corporate funding of USD 22.8 billion in the January-September 2021 period, registering a nearly three-fold jump over the previous year, according to Mercom Capital Group’s report.
Corporate funding includes venture capital (VC) funding, public market, and debt financing increased 190 percent in the first nine months of 2021, with USD 22.8 billion in 112 deals as compared with USD 7.9 billion in 72 deals in the same period of 2020.
Mercom Capital Group CEO Raj Prabhu said, “Investments continue to be robust across the solar sector. This will end up as one of the best years for solar financing since 2010. As the push toward the energy transition picks up speed worldwide, solar is benefitting enormously.”
The solar project acquisitions in the first nine months of 2021 have already surpassed all of 2020, said the report.
The global solar sector brought in USD 2.2 billion in VC funding in 39 deals, registering a rise of 466 percent compared to USD 394 million in 29 deals during January-September 2020.
In India, Premier Energies, a solar photovoltaic (PV) cell and module manufacturer, raised USD 27.11 million from GEF Capital Partners.
Public market financing into the solar sector came to USD 6.3 billion raised in 23 deals, up 209 per cent compared with USD 2 billion in 10 deals in the year-ago period.
In the public market financing space, ReNew Power from India was listed on the Nasdaq after completing a business combination with RMG Acquisition Corporation II. With this deal, RMG II became a wholly-owned subsidiary of ReNew Energy Global.
During the period under review, there were a total of 83 merger and acquisitions (M&As) transactions compared to 42 deals in January-September 2020. The largest M&A transaction was by Adani Green Energy Ltd (AGEL), which agreed to acquire a 100 percent stake in SB Energy India from Soft Bank Group (80 percent) and Bharti Group (20 percent). The transaction values SB Energy India at an enterprise valuation of about USD 3.5 billion.