Total corporate funding, including venture capital funding, public market and debt financing, into the solar sector stood at USD 4.6 billion during the same period of 2020, the report by clean energy consulting firm Mercom Capital Group said.
“Funding was up across the board in the first half of 2021 compared to last year, which was severely affected by the pandemic. Corporate M&A activity was up with solar developers expanding their pipelines, oil and gas companies diversifying into renewables, and funds buying up renewable assets,” said Raj Prabhu, CEO of Mercom Capital Group.
“The transition from fossil fuels to renewables and Environmental, Social and Governance (ESG) investing trends made an impact on financing as well as merger and acquisition (M&A) activity.”
The venture capital (VC) funding in first half (H1) of 2021 rose by 680 per cent higher to USD 1.6 billion in 26 deals, compared to the USD 210 million that went into 14 deals in 2020.
Solar public market financing in 1H 2021 was 386 per cent higher, with USD 3.7 billion raised in 13 deals compared to USD 758 million raised in six deals in January-June 2020.
The global debt financing activity in January-June period of ongoing year was at USD 8.2 billion in 32 deals, up 125 per cent from USD 3.7 billion raised in 17 deals in the first half of 2020.
The report further said there were 34 solar corporate M&A transactions in April-June 2021 compared to 20 in January-March 2021 and 13 transactions in Q2 or April-June 2020.