2014 global solar power industry saw the highest corporate funding in July–September since Q1 2011, a recent report by Mercom Capital shows.
Total corporate funding, covering venture capital (VC), private equity (PE), debt financing, and public market financing increased to $9.8 billion in Q3 2014 compared to $6.8 billion in Q2 2014.
Financing bustle was strong through all quarters in all segments like VC, debt and public markets, making it the best fundraising quarter since Q1 2011. VC funding in solar has reached $1 billion in the first three quarters this year, noted, Raj Prabhu, CEO, Mercom Capital.
However, Venture Capital funding steeped down by 28 percent, hitting a value of $326 million. Sunnova Energy that has managed to raise $110 million was the largest VC deal seen during this period. Glasspoint Solar bagging $53 million from a subsidiary of Shell was also a significant one.
The project funding scenario witnessed a total of 35 large-scale solar power projects raising $3.7 billion.
The 231 MW Setouchi Japan Solar Project secured $867 million loan from the group of Japanese banks and financial institutions. Besides, a 350 MW Morocco solar thermal power plant won $519 million World Bank loan.
However, public market funding dropped by 24 percent to $987 million, counting the $577 million IPO of TerraForm Power, a subsidiary of SunEdison.
The number of merger and acquisition agreements rose from 25 in Q2 to 32 in Q3. Acquisition of GRAPP Energies by Solargise and its subsidiary Green Ripples was the largest deal worth $200 million.
Moreover, project acquisitions worth $582 million recorded a cumulative generation capacity of 1.2 GW. The deal between BluEarth Renewable and Canadian Solar, where the former grabbed a 10 MW solar PV project in Canada for $60.3 million was the largest one in this period.
New project installation announcements were made for 175 large-scale power plants with cumulative generation capacity of 10.3 GW.
The investment in solar power sector is further expected to increase as India, China and other developing countries are renovating their aggressive capacity addition policies.
China has set a target of 35 GW installed solar power capacity by the end of next year, and India is planning to enhance its capacity addition through National Solar Mission.
South Africa expects a solar boom, auctioned under the Renewable Energy Independent Power Producer Program while Brazil preparing to organize solar power project auctions.
Sabeena Wahid
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