Despite inflationary challenges and elevated interest rates, financing in the solar industry has remained robust through the first three quarters of 2023, Mercom Capital Group CEO Raj Prabhu
According to Mercom Capital, corporate investment in the global solar sector surged by 55 percent to reach $28.9 billion in the period spanning January to September 2023. This remarkable increase is primarily attributed to the global commitment to achieving energy transition objectives.
In its latest report, the US-based research firm disclosed that corporate funding in the solar industry amounted to $18.7 billion during the first nine months of 2022. Mercom Capital Group CEO Raj Prabhu noted that, despite facing challenges like inflation and rising interest rates, financial support for the solar sector remained robust throughout the first three quarters of 2023.
Prabhu explained, "The resilience can be attributed to a strong global push to achieve energy transition objectives and substantial demand created by the Inflation Reduction Act, which has helped the sector weather persistent economic challenges and retain the interest of investors."
In the Indian venture capital arena, Juniper Green Energy successfully secured a $350 million investment from AT Capital Group and Vitol. This funding will enable Juniper Green Energy to work toward tripling its operational capacity to 2.5 GW by 2026 and advancing its ambitious development plans.
Additionally, Waaree Energies, backed by ValueQuest, raised $120.8 million in a second round of equity funding. This capital infusion will support the expansion of Waaree Energies' existing manufacturing capacity by 6 GW.
In the debt funding category, Adani New Industries, a wholly-owned subsidiary of Adani Enterprises, obtained a trade finance facility of $394 million from Barclays PLC and Deutsche Bank AG. These funds are earmarked to address the working capital requirements of their 10-GW vertically integrated solar module manufacturing facility.
Notably, there were various funding developments in the project funding sector in India as well. Serentica Renewables achieved financial closure for its forthcoming hybrid renewable energy projects in Karnataka. The entire debt funding, amounting to $370.6 million, was secured from power sector lender REC Limited.
Furthermore, the company successfully closed financial arrangements for another hybrid renewable energy project in Karnataka, securing $313.3 million in debt funding from power sector lender Power Finance Corporation (PFC).
Lastly, the Asian Development Bank (ADB) and Fourth Partner Energy inked a long-term loan agreement valued at up to $14.7 million for the construction and operation of a 25 MW solar photovoltaic power plant in India.