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Corporate funding for solar energy sector rose by 193% y-o-y in H1 of 2021: Report

In H1 of 2021, the total corporate funding for the solar energy sector saw an increase of 193 percent year-on-year, a new report released by Mercom Capital has said
Corporate funding for solar energy sector rose by 193% y-o-y in H1 of 2021: Report
Corporate funding for solar energy sector rose by 193% y-o-y in H1 of 2021: Report
  • The figure for H1 of 2021 stood at US$ 13.5 billion as opposed to US$ 4.6 billion in the corresponding period of the previous year
  • Project developers and IPPs were the most active acquirers in Q2 of 2021 as they picked up 13.3 GW, followed by oil and gas majors who acquired 9 GW

New Delhi: In the first half (H1) of 2021, the total corporate funding for the solar energy sector saw an increase of 193 percent year-on-year, a new report released by Mercom Capital has said. The figure for H1 of 2021 stood at US$ 13.5 billion as opposed to US$ 4.6 billion in the corresponding period of the previous year. It added that solar project acquisition in Q2 of 2021 was at a record high, with over 24 GW of solar projects acquired compared to 14.6 GW in Q1 of 2021.

“Funding was up across the board in the first half of 2021 compared to last year, which was severely affected by the pandemic. Corporate merger and acquisition (M&A) activity was up significantly... Solar project acquisitions reached a record high in Q2,” said Raj Prabhu, chief executive officer, Mercom Capital Group.

Project developers, IPPs acquired 13.3 GW of projects

Project developers and independent power producers (IPPs) were the most active acquirers in Q2 of 2021 as they picked up 13.3 GW, followed by oil and gas majors who acquired 9 GW, said the report. Prabhu added that the transition from fossil fuels to renewables and environmental, social, and corporate governance investing trends made an impact on financing as well as M&A activity.

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Venture capital funding 680% higher y-o-y in H1 2020

The report said that in H1 of 2021, venture capital funding was 680 percent higher, as US$ 1.6 billion was raised in 26 deals as compared to US$ 210 million raised in 14 deals in the first half of 2020. In H1 2021, there were 54 solar corporate M&A (mergers and acquisitions) transactions compared to 25 transactions in H1 2020. There were 34 solar corporate M&A transactions in Q2 2021 compared to 20 in Q1 2021 and 13 transactions in Q2 2020.

Solar project acquisitions in H1 2021 reached 39.3 GW compared to 14.7 GW acquired in the same period last year. 

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