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Global solar sector sees corporate funding, M&A activity worth USD 9.7 bn in 2018

Press Trust of India  |  New Delhi 

The global solar sector witnessed a total corporate funding and merger and acquisitions activity worth USD 9.7 billion in 2018, a 24 per cent drop compared to the year-ago period, according to a report.

said the total M&A and global corporate fundings, including (VC), debt financing and public market financing stood at USD 9.7 billion, a 24 per cent drop compared with the USD 12.8 billion raised in 2017.

Global VC funding for the solar sector in 2018 fell 18 per cent to USD 1.3 billion in 65 deals, compared with USD 1.6 billion raised in 99 deals in 2017, the report said.

Commenting on decline in funding, said: "2018 was a year filled with uncertainties which started with Section 201 tariffs followed by an announcement from that it was capping installations and reducing its feed-in-tariff."

Besides, more bad came from which imposed safeguard duties on imports. Uncertainty stemming from the three largest solar markets in the world was reflected in equities of publicly-traded solar companies as well as fund raising activity during the year, he added.

Out of the USD 1.3 billion in VC funding raised in 65 deals in 2018, USD 1.2 billion went to 50 solar downstream companies, which comprised 91 per cent of the total VC funding in 2018.

The top solar VC-funded companies in 2018 were Cypress Creek Renewables which raised USD 200 million, GreenYellow with USD 174 million, followed by Solar with USD 154 million, with USD 112 million and Sunnova with USD 100 million, the report said.

The top investors in large-scale projects included the European for Reconstruction and Development (EBRD), which invested in 16 projects, followed by the Dutch development with seven deals, and with six deals.

Merger and acquisition activity in the solar sector increased with 82 transactions in 2018 compared to 72 transactions in 2017.

The largest and most notable transaction in 2018 was the USD 5 billion acquisition of Equis by (GIP) - through its along with Canada's and

"About 100 GW of large-scale projects have been acquired since 2010, a reflection of how far solar has come as an asset class. Quality solar projects are now a mature, attractive investment opportunity around the world, said Prabhu.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sat, January 12 2019. 12:45 IST