The renewable energy firms in India have raised around $ 1.62 billion in the 1st quarter of year 2017. They have raised this money in some transactions like VC (Venture Capital) funding, debt financing, M&A (Mergers and Acquisitions) and project funding, as per the data published by one of the clean energy consulting companies – Mercom Capital Group.
The transactions of the solar and renewable energy firms in India made up for almost half of the sum total of global funding raised by the solar companies around the globe in the first quarter of 2017. The global solar sector went on to raise a corporate funding of around $3.2 billion in the 1st quarter of the year 2017, which is almost double of $1.6 billion that was raised in the 4th quarter of the year 2016, Mercom stated in the report on Thursday. This also included Venture Capital funding, debt financing and public market.
The first quarter growth is actually higher by almost 15% when compared to the sum total corporate funding of nearly 2.8 billion that was raised in the 1st quarter of the year 2016. In the study, Mercom tracked 233 new large scale project announcements globally in the 1st quarter of 2017, summing up to 12.7 GW.
Some big transactions included ReNew Power Ventures Limited going out to secure $200 million from the joint venture between Chubu Electric Power and TEP (Tokyo Electric Power). Greenko Holdings raised $155 million from the affiliates of GIC and Hero Future Energies nearly securing $125 million from the IFC (International Finance Corporation).
ReNew Power even went on to raise around $475 million through the subsidiary – Neerg Energy by actually selling green bonds to its overseas investors and it also secured around $390 million via project funding from the ADB (Asian Development Bank). WREPL (Welspun Renewables Energy Private Limited, which is now owned by Tata Power Co. Limited, raised around $176.28 million by the issuance of non-convertible debentures on private placement basis.
Solairedirect, which is a popular French solar project maker via its Indian unit, went on to secure $100.5 million loan from IDFC for construction of 2 solar projects. IPGU (India Power Green Utility), which is actually a subsidiary of India Power, went on to acquire 49% stake in 2 solar project firms from Punj -Lloyd Infrastructure. One of the reasons for 1st quarter funding levels increasing in solar sector from that of 2016 is mainly because of increased debt financing activity.