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					</table><p>The renewable energy capacity, including large hydro projects in India, accounted for 40.3% of the overall capacity mix at the end of September 2022, with a 163.7 GW capacity, according to the data from Central Electricity Authority (<a href="https://cea.nic.in/?lang=en" target="_blank" rel="noopener">CEA</a>) and Mercom’s <a href="https://mercomindia.com/product/india-solar-project-tracker/" target="_blank" rel="noopener">India Solar Project Tracker</a>.</p>
<p>The rise in installations was also supported by the increased number of investments in renewable projects across India.</p>
<p>The investments in the Indian solar sector alone during the first nine months (9M) of 2022 totaled $7.6 billion (~₹629.41 billion), per Mercom India Research’s latest report, <a href="https://mercomindia.com/product/q3-2022-india-solar-market-update/" target="_blank" rel="noopener">Q3 2022 India Solar Market Update</a>.</p>
<p>The top five renewable project funding deals that grabbed the headlines in 2022:</p>
<p><img decoding="async" loading="lazy" class="aligncenter wp-image-47015 size-full" src="https://mercomindia.com/wp-content/uploads/2022/12/Picture1-4.jpg" alt="" width="1379" height="207" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/Picture1-4.jpg 1379w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/Picture1-4-300x45.jpg 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/Picture1-4-768x115.jpg 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/Picture1-4-650x98.jpg 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/Picture1-4-624x94.jpg 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/Picture1-4-600x90.jpg 600w" sizes="(max-width: 1379px) 100vw, 1379px" /></p>
<p>Independent power producer ReNew Power <a href="https://mercomindia.com/renew-power-1-1-billion-loan-1-3-gw-round-the-clock-renewable/" target="_blank" rel="noopener">announced</a> a partnership with twelve international lenders for what is deemed to be the largest External Commercial Borrowings project finance loan totaling $1.1 billion in India&#8217;s renewables sector for any single project. Led by Netherlands-based Dutch multinational bank Rabobank, the loan will be used for ReNew&#8217;s hybrid round-the-clock (RTC) battery-enabled renewable project.</p>
<p><img decoding="async" loading="lazy" class="aligncenter wp-image-47016 size-full" src="https://mercomindia.com/wp-content/uploads/2022/12/Picture2-1.jpg" alt="" width="1379" height="207" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/Picture2-1.jpg 1379w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/Picture2-1-300x45.jpg 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/Picture2-1-768x115.jpg 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/Picture2-1-650x98.jpg 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/Picture2-1-624x94.jpg 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/Picture2-1-600x90.jpg 600w" sizes="(max-width: 1379px) 100vw, 1379px" /></p>
<p>The Indian Renewable Energy Development Agency (IREDA) <a href="https://mercomindia.com/ireda-approves-%e2%82%b944-45-billion-loan-sjvn-1-gw-solar/" target="_blank" rel="noopener">approved</a> a ₹44.45 billion (~$537.14 million) loan to SJVN Green Energy to develop a 1 GW solar project in Bikaner, Rajasthan. SJVN had bagged the project tendered by IREDA under the CPSU Phase-II (Tranche-III) program under viability gap funding to develop a grid-connected solar project. The project is to be commissioned within 36 months from the letter of award and will connect to the 400/200 kV Bikaner-II substation.</p>
<p><img decoding="async" loading="lazy" class="aligncenter wp-image-47017 size-full" src="https://mercomindia.com/wp-content/uploads/2022/12/Picture3-1.jpg" alt="" width="1379" height="207" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/Picture3-1.jpg 1379w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/Picture3-1-300x45.jpg 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/Picture3-1-768x115.jpg 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/Picture3-1-650x98.jpg 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/Picture3-1-624x94.jpg 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/Picture3-1-600x90.jpg 600w" sizes="(max-width: 1379px) 100vw, 1379px" /></p>
<p>Renewable energy platform Continuum Green Energy <a href="https://mercomindia.com/continuum-raises-350-million-debt-for-clean-energy/" target="_blank" rel="noopener">raised</a> $350 million (~₹27.9 billion) from two marquee global institutional investors to finance the expansion of its clean energy projects. The fund-raising round allowed the investors to issue an additional $50 million (~₹3.99 billion) on fulfilling certain conditions.</p>
<p><img decoding="async" loading="lazy" class="aligncenter wp-image-47018 size-full" src="https://mercomindia.com/wp-content/uploads/2022/12/Picture4-1.jpg" alt="" width="1379" height="207" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/Picture4-1.jpg 1379w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/Picture4-1-300x45.jpg 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/Picture4-1-768x115.jpg 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/Picture4-1-650x98.jpg 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/Picture4-1-624x94.jpg 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/Picture4-1-600x90.jpg 600w" sizes="(max-width: 1379px) 100vw, 1379px" /></p>
<p>Adani Green Energy <a href="https://mercomindia.com/adani-green-288-million-solar-wind-hybrid-rajasthan/" target="_blank" rel="noopener">raised</a> a $288 million (~₹21.76 billion) financing facility by extending its construction financing framework to $1.64 billion (~₹124 billion) for its under-construction renewable asset portfolio through agreements signed with leading lenders. The facility is expected to help finance the company&#8217;s 450 MW of wind-solar hybrid power projects in Rajasthan.</p>
<p><img decoding="async" loading="lazy" class="aligncenter wp-image-47029 size-full" src="https://mercomindia.com/wp-content/uploads/2022/12/Picture5-1.jpg" alt="" width="1379" height="207" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/Picture5-1.jpg 1379w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/Picture5-1-300x45.jpg 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/Picture5-1-768x115.jpg 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/Picture5-1-650x98.jpg 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/Picture5-1-624x94.jpg 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/Picture5-1-600x90.jpg 600w" sizes="(max-width: 1379px) 100vw, 1379px" /></p>
<p>Tata Power <a href="https://mercomindia.com/tata-power-gets-finance-facility-billion-mw-of-solar-projects/" target="_blank" rel="noopener">secured</a> a ₹4.5 billion (~$54.3 million) trade finance facility from Japan-based Mitsubishi UFJ Financial Group for two solar projects. The funds will be used for a 100 MW solar project in Parthur, Maharashtra, and a 120 MW solar project in Mesanka, Gujarat. Both projects will be executed by TP Kirnali, a wholly owned subsidiary of Tata Power Renewable Energy, the clean energy arm of Tata Power.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/gautamee-hazarika/" class="vcard author" rel="author"><span class="fn">Gautamee Hazarika</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/10/Picture1.jpg" width="50" /></p>
<p><strong style="text-decoration: underline">Gautamee,</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/gautamee-hazarika/" target="_blank" rel="noopener">More articles from Gautamee.</a><br />
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<a href="gautamee@mercomindia.com" target="_blank" rel="noopener">gautamee@mercomindia.com</a></p>
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<div class="authorboxn"><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/10/Picture1.jpg" width="102" height="102" /><a href="https://mercomindia.com/author/gautamee-hazarika/" rel="noopener">Gautamee</a> is a reporter at Mercom India. Prior to Mercom, Gautamee was working as a multimedia news journalist at ThePrint in New Delhi. She has received her Bachelors in English Honors and Masters in English Literature from St.Stephen&#8217;s College, University of Delhi.<a href="https://mercomindia.com/author/gautamee-hazarika/" rel="noopener">More articles from Gautamee</a></div>
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India’s Top Five Renewable Energy Project Funding Deals Announced in 2022 [Infographics]


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					</table><p>Mumbai-based rooftop solar start-up <a href="https://www.solarsquare.in/" target="_blank" rel="noopener">SolarSquare</a> has raised ₹1 billion ($12.8 million) as part of its series A funding round led by <a href="https://elevationcapital.com/" target="_blank" rel="noopener">Elevation Capital</a> and U.S.-based climate-focused fund <a href="https://lowercarboncapital.com/" target="_blank" rel="noopener">Lowercarbon Capital</a>. Existing investors, including Good Capital, Rainmatter, Better Capital, and angels Vidit Atrey and Sanjeev Barnwal (Meesho), also participated in this funding round.</p>
<p>SolarSquare designs, installs, and finances rooftop solar systems for homes and provides rooftop solar solutions for housing societies and commercial establishments. The company began as a commercial rooftop solar solutions provider and turned to the residential segment in 2020.</p>
<p>The funds will be used to shore up the company’s presence in the upcoming 18-24 months and deploy the investment to ramp up its installations to build a seamless user experience.</p>
<p>SolarSquare will also invest in scaling up research and development (R&amp;D), add more products to its inventory, and launch its in-house non-banking financial company (NBFC) to disburse loans to residential solar consumers. The funds will also be used to develop consumer and merchant-side apps and build back-end technology dashboards across the customer journey.</p>
<p>The fundraise comes short of four months after the start-up <a href="https://mercomindia.com/rooftop-solar-startup-solarsquare-raises-4-million/" target="_blank" rel="noopener">raised</a> $4 million in a seed funding round led by Good Capital. In the past two years, SolarSquare has installed rooftop solar systems at nearly 5,000 homes and claims to have offset four metric tons of carbon dioxide emissions per home every year by switching to solar power.</p>
<p>“We deeply understand the pain points that a consumer currently faces while switching to solar, and we are building highly consumer-centric solar solutions for them. Our mantra is to “Simplify Solar” and enable more homes to switch to cheaper, reliable, and greener solar power,” said SolarSquare&#8217;s CEO and Co-Founder Shreya Mishra.</p>
<p>Echoing the sentiment, Lowercarbon founder and serial investor Chris Sacca said, “Solar is now much cheaper and cleaner… so putting it on your roof just makes sense, especially in a part of the world with as much sun as India.”</p>
<p>While India has massive potential for solar, Sacca pointed out that getting panels installed isn’t always easy but believes SolarSquare has “cracked the code on hassle-free rooftop solar.”</p>
<p>Describing its future plans, the company aims to standardize installation quality, offer professional services and create easy EMI financing for consumers.</p>
<p>According to ‘<a href="https://mercomindia.com/product/rooftop-solar-market-report-q2-2022/" target="_blank" rel="noopener">Mercom India Rooftop Solar Market Report Q2 2022</a>,’ India added 389 MW of rooftop solar capacity in the second quarter of the calendar year 2022, of which 13% was in the residential segment.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/gautamee-hazarika/" class="vcard author" rel="author"><span class="fn">Gautamee Hazarika</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/10/Picture1.jpg" width="50" /></p>
<p><strong style="text-decoration: underline">Gautamee,</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/gautamee-hazarika/" target="_blank" rel="noopener">More articles from Gautamee.</a><br />
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<a href="gautamee@mercomindia.com" target="_blank" rel="noopener">gautamee@mercomindia.com</a></p>
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<div class="authorboxn"><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/10/Picture1.jpg" width="102" height="102" /><a href="https://mercomindia.com/author/gautamee-hazarika/" rel="noopener">Gautamee</a> is a reporter at Mercom India. Prior to Mercom, Gautamee was working as a multimedia news journalist at ThePrint in New Delhi. She has received her Bachelors in English Honors and Masters in English Literature from St.Stephen&#8217;s College, University of Delhi.<a href="https://mercomindia.com/author/gautamee-hazarika/" rel="noopener">More articles from Gautamee</a></div>
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Residential Solar Company SolarSquare Raises $12.8 Million Series A Funding

<p>Investments in the Indian solar sector stood at approximately $100 million (~₹7.46 billion) in the second quarter of 2020 (Q2 2020), down 90% from the previous quarter, according to Mercom&#8217;s <a href="https://mercomindia.com/product/q2-2020-india-solar-market-update/" target="_blank" rel="noopener noreferrer">Q2 2020 India Solar Market Update</a>.</p>
<p>Investments were 96% lower year-over-year (YoY) compared to Q2 2019. The COVID-19 pandemic has severely impacted the solar sector in India, and the decline in installations was primarily due to supply chain disruptions and lack of laborforce for project development. There were no manufacturing projects announced in the quarter.</p>
<p>Investments in Q2 were the lowest ever recorded in a quarter since Q1 2017, as far back as Mercom&#8217;s data goes.</p>
<p style="text-align: center;"><a href="https://mercomindia.com/wp-content/uploads/2020/08/Investment-in-Indian-Solar-Sector.png"><img decoding="async" loading="lazy" class="aligncenter size-full wp-image-20810" src="https://mercomindia.com/wp-content/uploads/2020/08/Investment-in-Indian-Solar-Sector.png" alt="Investment in Indian Solar Sector" width="521" height="306" srcset="https://cms.mercomindia.com/wp-content/uploads/2020/08/Investment-in-Indian-Solar-Sector.png 521w, https://cms.mercomindia.com/wp-content/uploads/2020/08/Investment-in-Indian-Solar-Sector-300x176.png 300w" sizes="(max-width: 521px) 100vw, 521px" /></a></p>
<p>In Q2 2020, India <a href="https://mercomindia.com/india-solar-capacity-q2-2020/" target="_blank" rel="noopener noreferrer">added</a> just 205 MW of solar installations, a decline of 81% compared to 1,090 MW installed in Q1 2020. Year-over-year, the installations declined 86% compared to 1,510 MW installed in Q2 2019.</p>
<p>At the end of Q2 2020, the cumulative solar installed capacity in India was approximately 37 GW.</p>
<p><strong>Deal Highlights</strong></p>
<p><a href="https://mercomindia.com/mysun-raises-pre-series-a-funding/" target="_blank" rel="noopener noreferrer">MYSUN</a>, a technology platform provider for rooftop solar energy solutions, raised ₹320 million (~$4.2 million) from its existing investors as part of its pre-series A round.</p>
<p>Complete funding and M&amp;A transaction list and details can be found in Mercom&#8217;s <a href="https://mercomcapital.com/product/1h-q2-2020-solar-funding-ma-report/" target="_blank" rel="noopener noreferrer">1H and Q2 2020 Solar Funding and M&amp;A Report</a>.</p>
<p>According to data from the report, total corporate funding (including venture capital funding, public market, and debt financing) in 1H of 2020 came to $4.5 billion compared to $6 billion in 1H 2019, a 25% drop year-over-year (YoY).</p>
<p>Meanwhile, global VC funding (venture capital, private equity, and corporate venture capital) in the solar sector was 74% lower with $210 million compared to $799 million raised in the first half of 2019.</p>
<p>Investments in the Indian solar industry in the first quarter <a href="https://mercomindia.com/investments-indian-solar-sector-declined/" target="_blank" rel="noopener noreferrer">stood</a> at $970 million, according to Mercom&#8217;s Q1 2020 India Solar Market Update.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/staff/" class="vcard author" rel="author"><span class="fn">Staff</span></a></div><div class="saboxplugin-desc"><div itemprop="description"></div></div><div class="clearfix"></div></div></div>

Investments in India’s Solar Sector Declined Significantly in Q2

<p>Investments in the Indian solar industry totaled $970 million (~₹72.9 billion) in the first quarter (Q1) of 2020, according to Mercom’s <a href="https://mercomindia.com/product/q1-2020-india-solar-market-update/" target="_blank" rel="noopener noreferrer">Q1 2020 India Solar Market Update</a>. Investments were 66% lower year-over-year (YoY) compared to <a href="https://mercomindia.com/india-solar-investments-q1-2019/" target="_blank" rel="noopener noreferrer">$2.8 billion (~₹195.4 billion)</a> recorded in Q1 2019.</p>
<p>The decline was primarily due to the slowdown in solar installations during the quarter and a lack of new investments into manufacturing units. According to the <a href="https://mercomindia.com/product/q1-2020-india-solar-market-update/" target="_blank" rel="noopener noreferrer">report</a>, COVID-19 disrupted the solar supply chain and India’s solar growth as solar installations fell to <a href="https://mercomindia.com/covid-19-disrupts-india-solar-installations-q1-2020/" target="_blank" rel="noopener noreferrer">1.1 GW</a>, a 39% decline YoY. At the end of Q1 2020, India’s installed solar capacity stood at ~36.8 GW.</p>
<p>Investments in Q1 were the lowest in a quarter recorded over two years.</p>
<p>According to the global Q1 2020 Funding and M&amp;A Report from Mercom Capital, corporate funding into the global solar sector was also down in Q1 with $1.9 billion, which was 31% lower YoY.</p>
<p><a href="https://mercomindia.com/wp-content/uploads/2020/05/Investments-in-Indian-Solar-Sector-by-Quarter-Billion.png"><img decoding="async" loading="lazy" class="aligncenter size-full wp-image-19461" src="https://mercomindia.com/wp-content/uploads/2020/05/Investments-in-Indian-Solar-Sector-by-Quarter-Billion.png" alt="Investments in Indian Solar Sector by Quarter ($ Billion)" width="520" height="309" srcset="https://cms.mercomindia.com/wp-content/uploads/2020/05/Investments-in-Indian-Solar-Sector-by-Quarter-Billion.png 520w, https://cms.mercomindia.com/wp-content/uploads/2020/05/Investments-in-Indian-Solar-Sector-by-Quarter-Billion-300x178.png 300w" sizes="(max-width: 520px) 100vw, 520px" /></a></p>
<p><strong>Deal Highlights</strong></p>
<p>A major funding deal in the quarter was <a href="https://mercomindia.com/renew-power-dollar-bond-issue/" target="_blank" rel="noopener noreferrer">$450 million (~₹31.96 billion)</a> raised by ReNew Power through a dollar bond issue. The bonds were priced at a coupon rate of 5.875% and will be issued in two tranches with an average maturity of five-and-a-half years. ReNew Power intends to use the proceeds from the dollar notes to refinance existing borrowings, including trade credit facilities of the holding company. The company added that part of the proceeds of nearly $65 million (~₹4.61 billion) would be used to meet future capital expenditure requirements.</p>
<p>Fourth Partner Energy, a distributed solar energy management company, received a loan of ₹5 million (~$0.067 million), from Grameen Impact India (GIII), a non-banking finance corporation registered under the Reserve Bank of India (RBI), towards its Power@1 Program for 18 months. Through the Power@1 Program, Fourth Partner Energy aims to provide electricity to non-profit organizations like government schools, rural hospitals, and others.</p>
<p>The quarter also saw venture funding deals, corporate, and project acquisitions.</p>
<p>Complete funding and M&amp;A transaction list and details can be found in Mercom’s <a href="https://mercomcapital.com/product/q1-2020-solar-funding-ma-report/" target="_blank" rel="noopener noreferrer">Q1 2020 Solar Funding and M&amp;A Report</a>.</p>
<p>Join our upcoming webinar ‘<a href="https://mercomindia.com/india-solar-market-overview-outlook/" target="_blank" rel="noopener noreferrer">India Solar Market Overview and Outlook</a>’ on June 5, 2020, at 11 am (IST). Our guest speakers will bring an investor’s perspective to the discussion and talk about the current financing environment, what it takes to lend to solar projects, and other important issues facing the market.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/sampath/" class="vcard author" rel="author"><span class="fn">Sampath Krishna</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><p><img class="alignleft" src="https://mercomindia.com/wp-content/uploads/2018/03/sampath-edited-1.png" alt="Sampath Krishna" />Sampath has been part of the Mercom India research and news team since the company’s inception. He currently oversees all data and research relating to news published on the MercomIndia.com platform. Sampath received his Bachelor’s of Commerce Degree from Kuvempu University and Post Graduate Diploma in Management, from Indira Gandhi National Open University. <a href="https://mercomindia.com/author/sampath/">More articles from Sampath Krishna.</a></p>
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Investments in Indian Solar Sector Declined 66% YoY to $970 Million in Q1 Amid COVID-19

<p>Foreign direct investments (FDI) in India’s renewable sector stood at $1.27 billion (~₹96.96 billion)  for the first nine months of the financial year (FY) 2019-20. The sector received $1.45 billion (~₹110.53 billion) in the entire FY 2018-19.</p>
<p>The renewable sector has been witnessing a steady increase in the inflow of FDI in the past few years, which increased from $783.57 million (~₹59.89 billion) ) in 2016-17 to $1.2 billion (~₹92.06 billion) in 2017-18 and then to $1.44 billion (~₹110.53 billion) in 2018-19.</p>
<p>Answering a question raised in the Lok Sabha, Union Commerce Minister, Piyush Goyal said that the FDI in the renewable sector starting from the FY 2010-11 up to the nine months of the financial year, 2019-20, stood at $8.28 billion (~₹633.04 billion) while the total FDI in the power sector during this period was $10.28 billion (~₹785.6 billion).</p>
<p><a href="https://mercomindia.com/wp-content/uploads/2020/04/Foreign-Direct-Investment-Equity-Inflows-Apr-2010-Dec-2019-1.png"><img decoding="async" loading="lazy" class="aligncenter size-full wp-image-18846" src="https://mercomindia.com/wp-content/uploads/2020/04/Foreign-Direct-Investment-Equity-Inflows-Apr-2010-Dec-2019-1.png" alt="Foreign Direct Investment Equity Inflows (Apr 2010 - Dec 2019)" width="632" height="538" srcset="https://cms.mercomindia.com/wp-content/uploads/2020/04/Foreign-Direct-Investment-Equity-Inflows-Apr-2010-Dec-2019-1.png 632w, https://cms.mercomindia.com/wp-content/uploads/2020/04/Foreign-Direct-Investment-Equity-Inflows-Apr-2010-Dec-2019-1-300x255.png 300w, https://cms.mercomindia.com/wp-content/uploads/2020/04/Foreign-Direct-Investment-Equity-Inflows-Apr-2010-Dec-2019-1-624x531.png 624w, https://cms.mercomindia.com/wp-content/uploads/2020/04/Foreign-Direct-Investment-Equity-Inflows-Apr-2010-Dec-2019-1-600x511.png 600w" sizes="(max-width: 632px) 100vw, 632px" /></a></p>
<p>FDI up to 100% is permitted in the renewable energy sector under the automatic route, and no prior government approval is required in India.</p>
<p>Recently, Mercom Capital released its <a href="https://mercomcapital.com/product/q1-2020-solar-funding-ma-report/" target="_blank" rel="noopener noreferrer">Q1 2020 Solar Funding and M&amp;A Report</a> which revealed that the total corporate funding in the solar sector, which includes venture capital funding, public market, and debt financing has plummeted by 31% at $1.9 billion (~₹143.4 billion) in Q1 2020 as compared $2.8 billion (~₹211.35 billion) raised in Q1 of 2019.</p>
<p>Recently, the <a href="https://commerce.gov.in/" target="_blank" rel="noopener noreferrer">Ministry of Commerce and Industry</a> revised its <a href="https://mercomindia.com/india-tweaks-fdi-policy/" target="_blank" rel="noopener noreferrer">FDI policy</a> intending to curb takeovers or acquisitions of Indian companies during the ongoing coronavirus pandemic. According to the FDI policy, a non-resident entity can invest in India, subject to the FDI policy except in those sectors or activities which are prohibited like defense, space, atomic energy. The revised policy now says that any investment by an entity of a country that shares a land border with India or where the beneficial owner of investment is a citizen of any of those countries will need government approval. Earlier, only Bangladesh and Pakistan were under this category, which has now been expanded to all neighboring countries sharing the border with India.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/rakesh-ranjan-parashar/" class="vcard author" rel="author"><span class="fn">Rakesh Ranjan</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/02/Rakesh-Headshot-crop-2.jpg" width="50" /></p>
<p><strong style="text-decoration: underline">Rakesh Ranjan,</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" target="_blank" rel="noopener">More articles from Rakesh Ranjan.</a></p>
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<p><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/02/Rakesh-Headshot-crop-2.jpg" width="77" height="102" /><a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" target="_blank" rel="noopener"><strong style="color: #00b451">Rakesh Ranjan</strong></a> is a staff reporter at Mercom India. Prior to joining Mercom, he worked in many roles as a business correspondent, assistant editor, senior content writer, and sub-editor with bcfocus.com, CIOReview/Silicon India, Verbinden Communication, and Bangalore Bias. Rakesh holds a Bachelor’s degree in English from Indira Gandhi National Open University (IGNOU). <a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" rel="noopener noreferrer">More articles from Rakesh Ranjan.</a></p>
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Renewable Industry Attracts $1.27 Billion in FDI During Nine Months of FY 2019-20

<p>Total corporate funding (including venture capital/private equity, public market, and debt financing) in the first nine months (9M) of 2019 was up with $9 billion raised, compared to $6.7 billion that was raised in the same period last year, a 34% increase year-over-year (YoY) according to Mercom Capital Group’s recently released <a href="https://mercomcapital.com/product/9m-and-q3-2019-solar-funding-and-ma-report/" target="_blank" rel="noopener noreferrer">9M 2019 Solar Funding and M&amp;A Report</a>.</p>
<p>In July 2019, Mercom had <a href="https://mercomindia.com/corporate-funding-solar-globally/" target="_blank" rel="noopener noreferrer">reported</a> that in the first half of 2019 (1H 2019), funding activity in the solar sector was on the rise when compared to the same period last year. Total corporate funding (including venture capital funding, public market, and debt financing) for the solar sector globally came to $6 billion in the first half of 2019.</p>
<p>Corporate funding into the solar sector in Q3 2019 came to $3 billion, compared to $1.3 billion in Q3 2018.</p>
<p><a href="https://mercomindia.com/wp-content/uploads/2019/10/Solar-Corporate-Funding-9M-2015-9M-2019.png"><img decoding="async" loading="lazy" class="aligncenter size-full wp-image-16085" src="https://mercomindia.com/wp-content/uploads/2019/10/Solar-Corporate-Funding-9M-2015-9M-2019.png" alt="Solar Corporate Funding 9M 2015-9M 2019" width="394" height="303" srcset="https://cms.mercomindia.com/wp-content/uploads/2019/10/Solar-Corporate-Funding-9M-2015-9M-2019.png 394w, https://cms.mercomindia.com/wp-content/uploads/2019/10/Solar-Corporate-Funding-9M-2015-9M-2019-300x231.png 300w" sizes="(max-width: 394px) 100vw, 394px" /></a></p>
<p>“Corporate funding activity so far this year is ahead of last year’s levels as demand outlook looks positive, and solar public companies continue to do well. In Q3 2019, over $100 million in venture funding went to technology and manufacturing-focused companies, which is rare. Five IPOs and over a billion dollars in securitization deals so far this year have been the highlights,” said Raj Prabhu, CEO of Mercom Capital Group.</p>
<p>In 9M 2019, global VC funding in the solar sector was 13% higher with $1 billion compared to $889 million raised in the first nine months of 2018. Global VC/PE funding in Q3 2019 totaled $208 million in 11 deals.</p>
<p>Surprisingly, technology and manufacturing companies received over a hundred million in funding. Oxford PV continues to raise funds for its PERC solar cell technology while Solaria, a PV module manufacturer, and EXEGER Sweden, a dye-sensitized solar cell manufacturer for consumer electronics, buildings, and other applications, also raised substantial amounts in VC funding.</p>
<p>The top VC deals in 9M 2019 were: the $300 million raised by Renew Power, $144 million raised by Avaada Energy, $65 million secured by Yellow Door Energy, $50 million raised by BBOXX, and $50 million raised by Spruce Finance.</p>
<p>A total of 88 VC investors participated in solar funding in 9M 2019.</p>
<p>Solar public market financing in 9M 2019 rose to $2.25 billion in 13 deals, 25% higher compared to $1.8 billion in 14 deals in 9M 2018.</p>
<p>In 9M 2019, 64% of solar stocks were in positive territory compared to 26% in 9M 2018.</p>
<p>Seven of the solar stocks tracked by Mercom increased more than 50% in 9M 2019, with three equities increasing more than 100%. Due to favorable market conditions, there have been five IPOs this year, raising over a billion dollars combined. In Q3 2019 there were two IPOs: Sterling &amp; Wilson Solar, a provider of solar EPC solutions, raised $406 million, and residential solar service provider, Sunnova Energy, raised $168 million.</p>
<p>The debt financing activity in 9M 2019 totaled $5.75 billion and was 43% higher compared to 9M 2018 when $4 billion was financed. The rise in debt financing activity was helped by six solar securitization deals, totaling $1 billion in 9M 2019. Cumulatively, $4.7 billion has now been raised through securitization deals since 2013. With low-interest rates expected to continue, and the possibility of further rate cuts in the U.S., the report states that there could be more securitization deals going forward.</p>
<p>There were a total of 13 project funding deals larger than $100 million in Q3 2019. The top project funding deal in Q3 2019 was Powertis, which received $613 million from BNDES (Banco Nacional de Desenvolvimento Economico e Social) and BNB (Banco do Nordeste), to develop a 765 MW solar PV portfolio in Brazil. A total of 60 investors provided funds for large-scale project development in Q3 2019.</p>
<p><a href="https://mercomindia.com/wp-content/uploads/2019/10/Solar-Top-Announced-Large-Scale-Projects-Funded-By-Dollar-Amount-in-Q3-2019.png"><img decoding="async" loading="lazy" class="aligncenter size-full wp-image-16086" src="https://mercomindia.com/wp-content/uploads/2019/10/Solar-Top-Announced-Large-Scale-Projects-Funded-By-Dollar-Amount-in-Q3-2019.png" alt="Solar Top Announced Large-Scale Projects Funded By Dollar Amount in Q3 2019" width="570" height="321" srcset="https://cms.mercomindia.com/wp-content/uploads/2019/10/Solar-Top-Announced-Large-Scale-Projects-Funded-By-Dollar-Amount-in-Q3-2019.png 570w, https://cms.mercomindia.com/wp-content/uploads/2019/10/Solar-Top-Announced-Large-Scale-Projects-Funded-By-Dollar-Amount-in-Q3-2019-300x169.png 300w" sizes="(max-width: 570px) 100vw, 570px" /></a></p>
<p>In 9M 2019, there were a total of 57 (10 disclosed) solar M&amp;A transactions compared to 64 (16 disclosed) transactions in 9M 2018.</p>
<p>The top M&amp;A solar transaction in 9M 2019 was the $255 million acquisition of a 78.5% stake in Perseo, operator of photovoltaic generation facilities, by ERG, through its subsidiary ERG Power Generation.</p>
<p>There were 20 solar M&amp;A transactions in Q3 2019 compared to 19 solar M&amp;A transactions in Q2 2019 and 18 transactions in Q3 2018. Of the 20 transactions in Q3 2019, 14 involved solar downstream companies, five involved balance of system (BOS) companies, and one deal involved a solar service provider.Project acquisition activity was lower in 9M 2019, with 15.9 GW of solar projects acquired, compared to 23.6 GW acquired in the same period last year. In Q3 2019, a total of 34 projects for a combined 4.3 GW were acquired.</p>
<p>Project developers were the major acquirers of solar assets and accounted for about 2.2 GW of acquisitions in Q3 2019, followed by investment firms and funds, which picked up 739 MW of projects, and utilities, and independent power producers (IPPs) which acquired 536 MW of projects.</p>
<p>An expected mini-rush in installations before the investment tax credit dropdown in the U.S., relatively mild after-effects from the safeguard duty in the U.S. and India, and continued growth in solar installations globally will continue to be positive drivers for the sector according to the report.</p>
<p>In the first quarter (Q1) of the calendar year (CY) 2019, the Indian solar sector received investments totaling $2.8 billion (~₹195.4 billion), according to Mercom India’s <a href="https://mercomindia.com/product/q1-2019-india-solar-market-update/" target="_blank" rel="noopener noreferrer">Q1 2019 India Solar Market Quarterly Update</a>.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/staff/" class="vcard author" rel="author"><span class="fn">Staff</span></a></div><div class="saboxplugin-desc"><div itemprop="description"></div></div><div class="clearfix"></div></div></div>

Corporate Funding for Solar Sector Globally Rises by 34% With $9 Billion in 9M 2019

<p><a href="https://www.kfw.de/kfw.de-2.html" target="_blank" rel="noopener">KfW,</a> a leading German financial institution, has signed a €200 million (~$228.15 million) loan agreement with India’s Rural Electrification Corporation Limited (REC), a state-run power sector financer. KfW signed the agreement on behalf of German Federal Ministry for Economic Cooperation and Development (BMZ).</p>
<p>The REC will fund renewable energy project developers in the form of low-interest loans. These loans will be supplemented by counterpart contributions of up to 30 percent from the borrowers as well as contributions from other banks. The funds provided will be leveraged by the private sector.</p>
<p>“KfW’s financing to promote the increased use of renewables will make an important contribution to slowing the rise in greenhouse gas emissions and reducing the deficit in the power supply,” said Joachim Nagel, a member of the KfW group executive board.</p>
<p>The overall investment is expected to be €285 million (~$325.12 million) and will also be a part of the German-Indian solar partnership.</p>
<p>KfW funds will provide a credit line for 200 MW of capacity, saving up to 285,000 tonnes of carbon emissions each year. This new source of capacity will also be able to supply power to around 270,000 homes.</p>
<p>The German bank will also provide a complementary grant of €1 million (~$1.14million) to implement an environmental and social management solution.</p>
<p>Recently, REC announced a $1 million (~₹67 million) contribution to the International Solar Alliance (ISA).</p>
<p><a href="https://mercomindia.com/rec-to-increase-renewable-segment-loans/" target="_blank" rel="noopener">Mercom previously reported that</a> REC plans to increase its loan disbursements to the renewable energy sector to 4-5 percent by 2022. In the last financial year, the renewable energy segment received ₹34.18 billion (~$0.51 billion) from the REC, which is only one percent of the total outstanding loan amount of ₹2,390 billion (~$ 35.41 billion) available to the sector.</p>
<p>In the past year, the REC raised <a href="https://mercomindia.com/rural-electrification-corporation-raises-450-million-green-bonds/" target="_blank" rel="noopener">$450 million</a> through the sale of green bonds on the London Stock Exchange. The funds will go toward the development of solar, wind, sustainable water, waste management, and biomass projects.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/nitin/" class="vcard author" rel="author"><span class="fn">Nitin Kabeer</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><p><img class="alignleft wp-image-9822" src="https://mercomindia.com/wp-content/uploads/2018/04/nitin-2.png" alt="" width="99" height="105" /><span style="font-family: Calibri"><span style="color: #000000"><span>Nitin is a staff reporter at Mercomindia.com and writes on renewable energy and related sectors. Prior to Mercom, Nitin has worked for CNN IBN, India News, Agricultural Spectrum and Bureaucracy Today. He received his bachelor’s degree in Journalism &amp; Communication from Manipal Institute of Communication at Manipal University and Master’s degree in International Relations from Jindal School of International Affairs. <a href="https://mercomindia.com/author/nitin/">More articles from Nitin Kabeer</a></span></span></span></p>
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Germany and India Sign a €200 Million Loan Agreement to Fund Renewable Projects

<p>With solar installations crossing <a href="https://mercomindia.com/cumulative-solar-installations-india-surpassed-12-gw-5-5-gw-installed-financial-year-2016-2017/" target="_blank" rel="noopener noreferrer">12 GW</a> by end of March 2017, financial activity was robust in the first quarter of 2017, with approximately $1.6 billion (~Rs.106 billion) in announced corporate, project funding and M&amp;A deals, according to the recently released <a href="http://bit.ly/MercomSolarQ12017" target="_blank" rel="noopener noreferrer">Q1 2017 Solar Funding and M&amp;A Report</a> by Mercom Capital Group.</p>
<p><strong><a href="https://mercomindia.com/wp-content/uploads/2017/07/India_Solar_Funding_and_MA_Transactions_Q4_2016_-_Q1_2017.png"><img decoding="async" loading="lazy" class="aligncenter wp-image-5484 size-full" src="https://mercomindia.com/wp-content/uploads/2017/07/India_Solar_Funding_and_MA_Transactions_Q4_2016_-_Q1_2017.png" alt="" width="616" height="235" srcset="https://cms.mercomindia.com/wp-content/uploads/2017/07/India_Solar_Funding_and_MA_Transactions_Q4_2016_-_Q1_2017.png 616w, https://cms.mercomindia.com/wp-content/uploads/2017/07/India_Solar_Funding_and_MA_Transactions_Q4_2016_-_Q1_2017-600x229.png 600w, https://cms.mercomindia.com/wp-content/uploads/2017/07/India_Solar_Funding_and_MA_Transactions_Q4_2016_-_Q1_2017-300x114.png 300w" sizes="(max-width: 616px) 100vw, 616px" /></a> </strong></p>
<p><strong>VC/PE Funding:</strong></p>
<p>ReNew Power, an India-based renewable energy project developer, secured <a href="https://mercomindia.com/japans-jera-invests-200-million-renew-power/" target="_blank" rel="noopener noreferrer">$200 million</a> (~Rs.12.9 billion) in funding from JERA (a joint venture between Tokyo Electric Power and Chubu Electric Power, two of Japan’s largest utility companies) for a 10 percent stake in the company.</p>
<p>Greenko Energy Holdings, an owner and operator of renewable energy projects, signed definitive agreements for an equity raise of <a href="https://mercomindia.com/greenko-raises-155-million-equity-funding/" target="_blank" rel="noopener noreferrer">$155 million</a> (~Rs.10 billion) from an affiliate of GIC and an entity that is ultimately wholly-owned by the Abu Dhabi Investment Authority (ADIA).</p>
<p>Hero Future Energies, the renewable energy subsidiary of Hero Group, secured <a href="https://mercomindia.com/ifc-to-invest-125-million-in-hero-future-energies/" target="_blank" rel="noopener noreferrer">$125 million</a> (~Rs.8.1 billion) in equity investment from the International Finance Corporation (IFC).</p>
<p>Oriano Solar, a provider of EPC services for solar projects in India, raised <a href="https://mercomindia.com/oriano-solar-raises-rs-200-million-series-funding/" target="_blank" rel="noopener noreferrer">$3.1 million</a> (~Rs.200 million) from Small Industries Development Bank of India&#8217;s Samridhi Fund to expand its team and finance working capital requirements.</p>
<p><strong>Debt Financing:</strong></p>
<p>In Q1 2017, ReNew Power raised $475 million (Rs.30.7 billion) through the sale of green energy bonds to overseas investors. Bank of America Merrill Lynch, JP Morgan, and HSBC were some of the bankers involved in arranging the deal.</p>
<p>Welspun Renewables Energy (WREPL), a renewable energy project developer acquired by Tata Power (an electric utility company), raised approximately $176.3 million (~Rs.12 billion) through issuance of non-convertible debentures on a private placement basis.</p>
<p><strong>Announced Project Funding:</strong></p>
<p>Approximately $490.4 million (~Rs.32 billion) in project funding was announced in <a href="http://mercomcapital.com/total-corporate-funding-in-solar-sector-rises-to-$3.2-billion-in-q1-2017-reports-mercom-capital-group" target="_blank" rel="noopener noreferrer">Q1 2017</a>. This is slightly higher than the project funding announced in <a href="https://mercomindia.com/1-1-billion-funding-ma-deals-announced-indian-solar-sector-q4-2016/" target="_blank" rel="noopener noreferrer">Q4 2016</a>, which was $369 million (~Rs.25 billion). ReNew Power secured a <a href="https://mercomindia.com/adb-approves-390-million-financing-package-renew-power-develop-709-mw-solar-wind-india/" target="_blank" rel="noopener noreferrer">$390 million</a> (Rs.25.2 billion) financing package from the Asian Development Bank (ADB) for the development of renewable energy projects in India. Solairedirect, a French solar project developer, through its special purpose vehicle &#8211; Solaire Surya Urja &#8211; secured a ~$100.4 million (~Rs.6.75 billion) loan from IDFC for the construction of two solar projects totaling 140 MW at the Bhadla Solar Park in Rajasthan.</p>
<p><strong>Project Acquisition:</strong></p>
<p>India Power Green Utility Private Limited (IPGUPL), a wholly owned subsidiary of India Power Corporation Limited, acquired a <a href="https://mercomindia.com/india-power-green-utility-punj-lloyd-co-develop-20-mw-solar-uttarakhand/" target="_blank" rel="noopener noreferrer">49 percent stakes in PL Sunrays Power and PL Renewable</a>, a wholly owned subsidiaries of Punj Lloyd, at an undisclosed amount.</p>
<p><strong>Solar Funds:</strong></p>
<p>There were two new renewable energy and solar-focused funds in Q1 2017 which totaled $313 million (~Rs.20.3 billion).The European Investment Bank (EIB) approved a <a href="https://mercomindia.com/european-investment-bank-provide-eur-200-million-213-million-loan-state-bank-india-large-scale-solar/" target="_blank" rel="noopener noreferrer">EUR200 million (~Rs.13.8 billion)</a>, 20-year loan to the State Bank of India (SBI) which will be utilized to help develop large scale solar projects in India. The World Bank has approved <a href="https://mercomindia.com/world-bank-provide-100-million-develop-solar-parks-india/" target="_blank" rel="noopener noreferrer">$100 million (~Rs.6.5 billion)</a> to develop solar parks in India. This includes a $75 million (~Rs.4.8 billion) loan from International Bank for Reconstruction and Development that will mature in 19 years and has a five-year grace period, a $23 million (~Rs.1.5 million) loan from the Clean Technology Fund (CTF) which has a 10-year grace period and a maturity of 40 years, and a $2 million (~Rs.129 million) interest-free CTF grant. The Shared Infrastructure for the solar parks project will establish large-scale solar parks in the country and support the Government of India’s plans to install 100 gigawatts (GW) of solar power by 2022.</p>
<p>To learn more about the report, visit<strong>: </strong><a href="http://bit.ly/MercomSolarQ12017" target="_blank" rel="noopener noreferrer">http://bit.ly/MercomSolarQ12017</a></p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/priya-sanjay/" class="vcard author" rel="author"><span class="fn">Priya Sanjay</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Priya-Sanjay-Managing-Director-Mercom-India-1.jpg" width="50" /></p>
<p><strong style="text-decoration: underline">Priya Sanjay,</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/priya-sanjay/" target="_blank" rel="noopener">More articles from Priya Sanjay.</a></p>
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<p><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Priya-Sanjay-Managing-Director-Mercom-India-1.jpg" alt="Wendy Prabhu" />Priya currently serves as the Publisher for MercomIndia.com. With more than a decade of experience working in corporate communications, research, and policy, Priya has deep roots in the Indian energy markets and is regularly in touch with policy makers and industry leaders. Priya received her bachelor’s degree from Vidya Vardhaka College of Arts in Bangalore, India for Political Science and Economics and completed her MBA from Bangalore University. <a href="https://mercomindia.com/author/priya-sanjay/">More articles from Priya Sanjay.</a></div>
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Indian Solar Sector Sees $1.6 Billion in Funding and M&A Transactions in Q1 2017

<p>With solar installations in 2016 totaling 4 GW, financial activity was robust in the fourth quarter of 2016, with approximately $1.1 billion (~Rs.76.6 billion) in announced corporate, project funding and M&amp;A deals according to the recently released <a href="http://bit.ly/MercomSolarQ42016" target="_blank" rel="noopener noreferrer">Q4 and Annual 2016 Solar Funding and M&amp;A Report</a> by Mercom Capital Group.</p>
<p><a href="https://mercomindia.com/wp-content/uploads/2017/06/Q4_India_Deals-1.png"><img decoding="async" loading="lazy" class="aligncenter wp-image-4802 size-full" src="https://mercomindia.com/wp-content/uploads/2017/06/Q4_India_Deals-1.png" alt="" width="359" height="220" srcset="https://cms.mercomindia.com/wp-content/uploads/2017/06/Q4_India_Deals-1.png 359w, https://cms.mercomindia.com/wp-content/uploads/2017/06/Q4_India_Deals-1-300x184.png 300w" sizes="(max-width: 359px) 100vw, 359px" /></a></p>
<p>MYSUN, an online solar marketplace, received $2.5 million (~Rs.169.8 million) in VC Funding from Hemant Taneja, Managing Director at General Catalyst Partners.</p>
<p>Hindustan Clean Energy, a renewable energy subsidiary of Hindustan Power Projects, raised $130 million (~Rs.8.82 billion) in debt financing from Farallon Capital Management and Bank of America Merrill Lynch. ACME Cleantech Solutions, a flagship company of Acme Group and a solar project developer, raised $72.7 million (~Rs.4.93 billion) secured and listed non-convertible debentures (NCD) for a tenor of 66 months from Piramal Enterprises.</p>
<p>For the first time an Indian solar power developer ventured into IPO. Azure Power, <a href="https://mercomindia.com/azure-power-revises-ipo-75-million/" target="_blank" rel="noopener noreferrer">raised</a> $61.6 million (~Rs.4.18 billion) in its IPO, $75 million (~Rs.5.09 billion) through private placement of equity shares and ~$25 million (~Rs.1.7 billion) in a pre-IPO financing round.</p>
<p>Approximately $369 million (~Rs.25.04 billion) in project funding was announced in Q4 2016. Azure Power secured ~$309 million (~Rs.20.98 billion) in project finance and also secured a $20 million (~Rs.1.36 billion) long-term low-cost debt financing facility for 15 years at a cost of capital of 4.74 percent from Overseas Private Investment Corporation (OPIC). Ezon Energy, a renewable energy project developer and integrator, raised ~$21 million (~Rs.1.4 billion) from a Japanese investor, Natori Nohisa. Bhageria Industries, a manufacturer and supplier of dyes and intermediates, <a href="https://mercomindia.com/bhageria-industries-secures-14-million-loan-with-exim-bank-to-set-up-30-mw-of-solar-in-maharashtra/" target="_blank" rel="noopener noreferrer">secured</a> ~$14 million (~Rs.950 million) loan for construction of 30 MW large-scale grid-connected solar projects from Export Import Bank of India, and Sam Solar secured a ~$4.8 million (~Rs.325 million) loan from Power Finance Corporation.</p>
<p><a href="https://mercomindia.com/wp-content/uploads/2017/06/Q4_2016_India_Project_Funding.png"><img decoding="async" loading="lazy" class="aligncenter wp-image-4803 size-full" src="https://mercomindia.com/wp-content/uploads/2017/06/Q4_2016_India_Project_Funding.png" alt="" width="763" height="214" srcset="https://cms.mercomindia.com/wp-content/uploads/2017/06/Q4_2016_India_Project_Funding.png 763w, https://cms.mercomindia.com/wp-content/uploads/2017/06/Q4_2016_India_Project_Funding-600x168.png 600w, https://cms.mercomindia.com/wp-content/uploads/2017/06/Q4_2016_India_Project_Funding-300x84.png 300w, https://cms.mercomindia.com/wp-content/uploads/2017/06/Q4_2016_India_Project_Funding-650x182.png 650w, https://cms.mercomindia.com/wp-content/uploads/2017/06/Q4_2016_India_Project_Funding-624x175.png 624w" sizes="(max-width: 763px) 100vw, 763px" /></a>Project acquisition activity also picked up in Q4 2016. Greenko Energy Holdings, an owner and operator of renewable energy projects, completed the <a href="https://mercomindia.com/month-in-a-minute-important-headlines-and-data-points-from-the-indian-renewable-sector-in-november-2016/" target="_blank" rel="noopener noreferrer">acquisition</a> of SunEdison’s 587 MW Indian wind and solar projects for a cash payment of $42 million (~Rs.2.85 billion) and assumption of project-level debt of $350 million (~Rs.23.77 billion) (at an average interest rate of 11.3 percent).</p>
<p><img decoding="async" loading="lazy" class="aligncenter wp-image-4804 size-full" src="https://mercomindia.com/wp-content/uploads/2017/06/Q4_2016_Project_Acquisition_India.png" alt="" width="776" height="249" srcset="https://cms.mercomindia.com/wp-content/uploads/2017/06/Q4_2016_Project_Acquisition_India.png 776w, https://cms.mercomindia.com/wp-content/uploads/2017/06/Q4_2016_Project_Acquisition_India-600x193.png 600w, https://cms.mercomindia.com/wp-content/uploads/2017/06/Q4_2016_Project_Acquisition_India-300x96.png 300w, https://cms.mercomindia.com/wp-content/uploads/2017/06/Q4_2016_Project_Acquisition_India-768x246.png 768w, https://cms.mercomindia.com/wp-content/uploads/2017/06/Q4_2016_Project_Acquisition_India-650x209.png 650w, https://cms.mercomindia.com/wp-content/uploads/2017/06/Q4_2016_Project_Acquisition_India-624x200.png 624w" sizes="(max-width: 776px) 100vw, 776px" /></p>
<p>Suzlon, a wind turbine manufacturer and renewable energy project developer, entered into a <a href="https://mercomindia.com/suzlon-partner-ostro-energy-set-50-mw-solar-project-telangana/" target="_blank" rel="noopener noreferrer">joint venture</a> with Ostro Energy, which is expected to acquire a 49 percent stake in Prathamesh Solar Farms at Wanaparthy, Telangana. IDFC Alternatives, an Indian Infrastructure fund, <a href="https://mercomindia.com/idfc-alternatives-inks-rs-3-5-billion-deal-acquire-45-mw-solar-projects-punj-lloyd/" target="_blank" rel="noopener noreferrer">acquired</a> three solar projects totaling 45 MW in Punjab and Rajasthan from Punj Lloyd Infrastructure, an engineering and construction services company.</p>
<p>Fonroche Energie, a France-based developer of renewable energy projects, <a href="https://mercomindia.com/fonroche-energie-sas-divests-its-india-solar-assets-shifts-focus-to-latin-america/" target="_blank" rel="noopener noreferrer">sold</a> two solar projects totaling 22.3 MW located in Gajner, Rajasthan, India, to Hinduja Group, an Indian conglomerate, at an undisclosed price. Canadian Solar formed two <a href="https://mercomindia.com/suzlon-set-45-mw-solar-projects-telangana-canadian-solar-unisun-energy/" target="_blank" rel="noopener noreferrer">joint ventures</a> with Suzlon, by acquiring 49 percent stakes in special purpose vehicles, to develop two solar projects of 15 MW each in Telangana. Unisun Energy Group, a PV project investor, developer, and clean energy solutions provider, formed a <a href="https://mercomindia.com/suzlon-set-45-mw-solar-projects-telangana-canadian-solar-unisun-energy/" target="_blank" rel="noopener noreferrer">joint venture</a> with Suzlon, and acquired 49 percent stake in Vayudoot Solarfarms project. AMP Solar <a href="https://mercomindia.com/suzlon-partners-amplus-solar-develop-15-mw-solar-project/" target="_blank" rel="noopener noreferrer">acquired</a> a 49 percent stake in Rudra Solarfarms, a special purpose vehicle (SPV) set up by Suzlon for executing a 15 MW solar PV project in Telangana.</p>
<p>To learn more about the report, visit: <a href="http://bit.ly/MercomSolarQ42016" target="_blank" rel="noopener noreferrer">http://bit.ly/MercomSolarQ42016</a></p>
<p><em>Image credit: Pixabay</em></p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/wendyprabhu/" class="vcard author" rel="author"><span class="fn">Wendy Prabhu</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/wendy-edited-e1520613276336.png" width="50" /></p>
<p><strong style="text-decoration: underline">Wendy Prabhu,</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/wendyprabhu/" target="_blank" rel="noopener">More articles from Wendy Prabhu.</a></p>
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<img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/wendy-edited-e1520613276336.png" alt="Wendy Prabhu" />Wendy is a co-founder of Mercom Capital Group, the parent company of Mercom India. Wendy is a contributing editor at MercomIndia.com and is responsible for content quality across the company and products. She has over 15 years of business and finance experience in the energy and technology markets. In addition to Mercom, Wendy has written for many other clean energy-focused blogs and publications.  <a href="https://mercomindia.com/author/wendyprabhu/">More articles from Wendy</a><a href="https://mercomindia.com/author/wprabhu/"> Prabhu.</a></div>
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