October 29, 2020

Company funding in photo voltaic sector falls 76 per cent in H1 2020 to USD 462 mn: Report

Complete company funding in India’s photo voltaic vitality sector dropped 76 per cent to USD 462 million (about Rs 3,474 crore) within the first half of 2020, a report stated. Company funding contains enterprise capital funding, public market, and debt financing.

As per the report by Mercom Capital Group, a world clear vitality communications and consulting agency, whole worldwide company funding within the photo voltaic sector throughout January-June 2020 stood at USD 4.5 billion, down 25 per cent from USD 6 billion within the corresponding interval of the earlier yr.

Company funding in India in H1 2020 was USD 462 million, a 76 per cent fall in comparison with USD 1.9 billion throughout January-June 2019, it stated.

“Monetary exercise within the first half of the yr displays the realities on the bottom. Despite the fact that photo voltaic stocks have carried out nicely, and company funding in Q2 regarded barely higher due to a number of securitization offers, international economies and photo voltaic exercise are nonetheless removed from being again to the place they need to be.

“Challenge acquisition exercise, usually an indication of well being within the sector, declined considerably in Q2,” stated Raj Prabhu, CEO of Mercom Capital Group.

“In all, it may have been worse contemplating the severity of the disaster,” he added.

In H1 2020, international VC funding (enterprise capital, non-public fairness, and company enterprise capital) within the photo voltaic sector was 74 per cent decrease at USD 210 million in comparison with USD 799 million raised within the first half of 2019, the report stated.

In India, VC funding within the photo voltaic sector totalled USD 12 million, a 97.5 per cent drop in comparison with USD 484 million within the first half of 2019.

The highest VC funding deal in India in H1 2020 was the USD 5 million raised by clear vitality investor cKers Finance from New Power Nexus to speed up the event of recent distributed photo voltaic segments within the nation.

Introduced debt financing exercise globally within the first half of 2020 (USD 3.6 billion in 15 offers) was 16 per cent decrease in comparison with the primary half of 2019 when USD 4.2 billion was raised in 27 offers.

Debt funding in India within the first half totalled USD 450 million, down 67 per cent from USD 1.Four billion raised in H1 2019.

The primary half of 2020 noticed 25 photo voltaic company M&A transactions globally, in comparison with 37 transactions within the corresponding interval of the earlier yr.

There have been three such transactions in India, however the monetary particulars weren’t disclosed, the report stated.

International photo voltaic venture acquisition exercise was up in H1 2020 at 14.7 GW in comparison with 11.6 GW acquired in the identical interval final yr.

Oil and gasoline majors had been the main acquirers of photo voltaic property and accounted for about 6.5 GW (45 per cent) of acquisitions, adopted by funding companies with 6.1 GW (41 per cent).

In India, 1.eight GW of photo voltaic tasks had been acquired in comparison with 737 MW in H1 2019, the report stated.