The global solar sector has witnessed total corporate funding of $27.8 billion in 2021, the highest in the last 10 years, according to Mercom Capital Group.
Corporate funding includes venture capital and private equity (VC), debt financing, and public market financing.
In its latest report, the global clean energy consulting firm said the total worldwide corporate funding in the solar sector in January-December 2021 soared to $27.8 billion compared to $14.5 billion raised in 2020. Corporate funding in 2021 was the highest in ten years.
Mercom Capital Group CEO Raj Prabhu said 2021 was the best year for solar corporate funding and mergers and acquisitions since 2010. Financing activity bounced back strongly, following a COVID-19-affected 2020.
There was more money than ever chasing deals, and more demand than supply of attractive companies and assets as organisations and funds look to fulfil their ESG and clean energy mandates, he added.
The global venture capital and private equity funding in the solar sector in 2021 came to $4.5 billion, registering a rise of 281 per cent from $1.2 billion garnered in 2020. There were 11 VC funding deals of over $100 million apiece in 2021.
In India, Oorja Development Solutions, an off-grid solar services provider, secured $1 million in seed funding from Schneider Electric Energy Access Asia (SEEAA).
In 2021, the public market financing segment raised $7.5 billion, which was 49 per cent higher compared to $5.1 billion in 2020.
Debt financing came to $15.8 billion, a 91 per cent increase compared to $8.3 billion raised during 2020. In India, in the debt funding segment, Virescent Renewable Energy Trust (VRET) raised $288.4 million through listed non-convertible debentures and long-term debt financing.
''Merger and acquisition (M&A) activity in the solar sector soared with 126 transactions in 2021 - the highest number of deals ever recorded.
“Most of the transactions involved solar downstream companies. The largest transaction in 2021 was Adani Green Energy Limited (AGEL), which acquired a 100 per cent stake in SB Energy India at an enterprise valuation of approximately $3.5 billion,'' the report said.
In the domestic M&A segment, Reliance New Energy Solar, the green energy arm of Reliance Industries, signed an agreement with Shapoorji Pallonji and Company to acquire a 40 per cent stake in Sterling and Wilson Solar, a solar engineering, procurement, and construction company, through a combination of primary investment, a secondary purchase, and an open offer.
Reliance New Energy Solar also acquired REC Solar Holdings from China National Bluestar Group for $771 million.
Sharing details of the project M&A deals, it said, France-based solar developer Technique Solaire acquired a 34 MW ground-mounted solar project in Uttar Pradesh from the Jakson Group and businessman Ravi Goyal. Another company, Ayana Renewable Power, signed a deal to acquire a 100 per cent equity stake in a 250 MW solar PV project developed and operated by ACME Solar Holdings.
Virescent Renewable Energy Trust acquired a 49 MW solar portfolio from five special purpose vehicles (SPVs) of Focal Energy for $46.7 million.
(With inputs from PTI)
