Daily News Wrap-Up: Corporate Funding for Solar Rises 54% YoY in 1H 2023

Rajasthan DISCOM invites bids for 295 MW of solar projects

July 18, 2023


The total global corporate funding in the solar sector during the first half (1H) of 2023, including venture capital investments, public market funding, and debt financing, reached $18.5 billion, a 54% year-over-year (YoY) increase from $12 billion. The numbers were revealed in Mercom Capital Group’s newly released 1H and Q2 2023 Solar Funding and M&A Report. Despite the surge in funding amounts, there was a 12% YoY decline in the number of deals executed. During 1H 2023, 80 deals took place in contrast to the 91 deals recorded during the corresponding period in 2022.

The Jodhpur Vidyut Vitran Nigam floated three tenders for installing and commissioning 108 grid-connected solar power projects with a total capacity of 295.32 MW in various subdivisions of Hanumangarh Circle under Component C of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan program for feeder level solarization. The estimated project cost is ₹35 million (~$426,125)/MW.

Central Railways has invited bids for state-wise empanelment of agencies to implement grid-connected rooftop solar power projects of 4.105 MW capacity at various locations in Mumbai, Bhusawal, Nagpur, and Pune Divisions through public-private partnership and on a design, build, finance, operate, and transfer basis. The last day to submit the bids is August 28, 2023. The bids will be opened on the same day.

Indore-based Universal Transformers, a provider of electrical and automation solutions, has bagged the engineering, procurement, and construction contract in the West Bengal Power Development Corporation’s auction to set up 22.5 MW of grid-connected floating solar projects at the Bakreswar, Santhaldih, and Sagardidhi thermal power plants. Of the total capacity, a 10 MW floating solar project will be developed at Bakreswar thermal power plant, while 7.5 MW and 5 MW will be developed at Santhaldih and Sagardidhi thermal plants, respectively.

The Central Electricity Regulatory Commission has ruled that developers are entitled to compensation in lieu of higher expenses incurred for 100 MW solar power projects in Uttar Pradesh and Karnataka after the Goods and Services Tax (GST) came into force. The compensation would qualify under the ‘Change in Law’ event and will be applicable even if GST was promulgated after the project’s commercial operation date.

The Madhya Pradesh Electricity Regulatory Commission has issued a detailed procedure to verify captive generating projects and user compliance per the Electricity Rules, 2005 provisions. The procedure will be applicable for the financial year 2023-24. The Madhya Pradesh Power Transmission Company will be the designated authority to determine the captive status of the captive generating projects and captive users.

JSW Energy, an independent power producer, reported a net profit of ₹2.9 billion (~$35.3 million), a decrease of 48% (YoY) in the first quarter of the financial year 2023-24, due to the lower realization in the thermal segment following a decline in coal prices. The company’s total revenue declined by 3% YoY or ₹30.13 billion ($367 million). The earnings before interest, taxes, and depreciation showed a notable 18% YoY increase, reaching ₹13.07 billion ($159.2 million) in the quarter, primarily driven by contributions from renewable energy assets.

Innergex Renewable Energy, an independent renewable power producer and project developer, has closed a $534 million construction financing package, marking a significant move in developing the Boswell Springs Wind Project in the U.S. The financing includes a $203 million ten-year non-recourse term loan with BNP Paribas, Credit-Agricole CIB, Export Development Canada, and MUFG Bank, acting as Joint Lead Arrangers. The funds will be utilized for constructing and operating the 329.8 MW wind project in Wyoming, United States.