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Adam Wentworth, Editor, Climate Action


Bali is one of the most popular tourist destinations in the world, with an estimated 5 million people visiting the island last year. Many visit for the white sands, warm seas, and beautiful scenery.

But Bali also has a problem with waste. A British diver’s recent video of himself swimming through a huge ‘slick’ of plastic went viral. The footage highlighted to a global audience an issue which Melati and Isabel Wijsen know all too well.

As children, the sisters were shocked by the amount of plastic they saw on the island, and the seeming lack of progress towards cleaning it up. In response, they decided to launch the Bye Bye Plastic Bags initiative in 2013. The project has been hugely successful in raising awareness and action on the issue. The girls have worked with the local government on new policies; given speeches at major events around the world; and helped set up 16 teams in different countries to promote similar environmental initiatives.

I recently spoke with Melati on the fifth anniversary of the campaign, and asked if there was a turning point in wanting to tackle the problem.

“It was a lesson in class about world leaders and change-makers, such as Nelson Mandela, Martin Luther King, and Lady Diana,” she says.

“We were 10 and 12 at the time. We went home that day thinking about what we can do as kids that will make a difference?”

“Growing up on an island surrounded by ocean we see the negative impact plastic has - it’s hard not to take action. There's no escaping it here. The plastic problem is so in your face.”

They were undeterred by their young age and instead made an asset of the fact that the movement was ‘driven by children’. Melati says the sisters “didn’t want to wait until we were older to stand up for what we believe in, so we didn’t.”

“Without a business plan, strategy or budget we went ahead with our passions and intention to make the island of Bali plastic bag free.” 

Choosing plastic bags above other waste was the natural cause as it was what most impacted their daily lives. “As we would play in the rice fields or walk on the beach we saw plastic bags clogging the gutters and piling up in the rivers, by the side of the road.”

They also saw it as a problem that they could realistically tackle. In the five years since the campaign launched they have gained a huge amount of attention for their cause, including getting the Governor of Bali to sign a Memorandum of Understanding on reducing plastic bags. But have attitudes changed so far, and have they seen any improvements?

“The attitudes are changing, public awareness is increasing,” she says, but overall there isn’t the infrastructure to tackle the problem at its root. “There is no collection, or island-wide waste management system; therefore, we are still seeing people burn and dump (plastic bags). There isn't a long-term, easy solution.”  

The campaign has instead started its own clean-up operations and educational outreach. Earlier this year, they were able to mobilise 20,000 people to get involved in cleaning up 65 tonnes of plastic waste over a weekend. The year before they collected 40 tonnes of plastic and organic waste.

In a possible response to public pressure on plastics, the Indonesian government has just set strong targets to tackle plastic waste in the country out to 2025. It remains to be seen whether they are serious about change, or whether the new goals are achievable without serious investments in new infrastructure. On this final point, Melati strikes a tone between scepticism and cautiously optimistic.

“For the past five years we have been campaigning to eliminate one piece of plastic item, and still have not managed to see concrete government action towards this goal. So I have my questions when they commit to a reduction of 70 percent of plastic entering oceans within the next seven years.”

“Having said that, it’s a great first step that Indonesia has made these commitments on the international stage. I do believe in their intentions and hope that Bali can lead by example by being the first island in Indonesia to say no to plastic bags.”

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The EU has taken a significant step towards fundamentally changing the way its economy works, shifting towards principles which make an asset out of waste.

Draft laws recently adopted by the EU Parliament in Strasbourg create the tough new standards covering recycling, packaging, and food waste.

The proposals approved by MEPs include targets to recycle at least 55 percent of all waste from households and businesses by 2025, rising to 65 percent by 2035. 70 percent of all packaging materials should be recycled upon use by 2030.

The package of rules, which is still be ratified by the European Council, also caps at 10 percent the amount of municipal waste that can be sent to landfill. This could prove particularly difficult for some EU member states, such as Greece and Croatia, which send more than 75 percent to landfill.

Member states will also be mandated to reduce food waste by 50 percent by 2030.

Italian MEP Simona Bonafè, who led on the new legislation, said the measures would help embed sustainable thinking within the continent: “The circular economy is not only a waste management policy, but is a way to recover raw materials and not to overstretch the already scarce resources of our planet, also by profoundly innovating our production system.”

“With this package, Europe is firmly committed to sustainable economic and social development, which will at last integrate industrial policies and environmental protection,” she added.

The EU has been working on a new package of circular economy rules since 2015, and separately laid out tough new plastic targets earlier this year. The new strategy aims to make all plastic packaging reusable or recyclable by 2030.

“This package also contains important measures on waste management, but at the same time goes further, by defining rules taking into account the entire life cycle of a product and aims to change the behaviour of businesses and consumers. For the first time, member states will be obliged to follow a single, shared legislative framework,” Bonafè concluded.

Luxury fashion designer Stella McCartney has spoken of the urgent need to transform the fashion industry to become more sustainable.

Talking to the BBC at the launch of a new London exhibition focussing on fashion’s relationship with nature, the designer drew attention to the “medieval” methods used within the industry.

“It’s sadly a bigger issues than anyone really realises. It’s the second most harmful industry to the environment currently on the planet. And it does make perfect sense if you think about how much fashion there is, whether it be luxury or fast…it’s swamping the planet.”

Stella McCartney has built an immensely popular brand and her company operates 55 stores in some of the world’s most expensive shopping districts. Her clothes are also distributed in 77 countries, meaning she is well-placed to make an impact within the fashion world.

“We’ve been relying on an industry that is essential medieval…there is $500 billion worth of waste in the fashion industry every year and that is ridiculous.”

However, she struck a positive note on the opportunities presented by new campaigns and methods which are helping to bring about change.

“It’s a really amazing moment that we are living in as humans for change, on everything, on energy, on architecture. This is really a moment to look to the future for our children.”

Ms McCartney has been working with the Ellen MaCarthur Foundation to publicise the issue of waste within the fashion industry, and to work on new sustainable methods. This includes developing new dyes and silks in the laboratory which are less resource intensive.

A report released by the foundation last year highlighted that if nothing changes the industry will use up a quarter of the world’s carbon budget by 2050. A culture of waste leads to the release of half a million microfibres into the ocean every year, equivalent to more than 50 billion plastic bottles.

The next generation of offshore wind turbines will be bigger and more powerful than ever.

And the UK continues to play the role of global leader in nurturing this clean energy technology.

Last month, Climate Action reported on GE Renewable Energy’s launch of a new 12 megawatt turbine, called the Haliade-X. This new machine will soon become the world’s most powerful wind turbine, with a plan to bring it to market by 2021.

To help GE make this a reality it is now teaming up with an innovative test centre on the north-east coast of England.

The Offshore Renewable Energy Catapult (ORE) was created to trial and experiment with new renewable technologies at its base in Blyth, Northumberland. And for the next five years the centre will be testing GE’s new mega-turbine, which will tower 260 metres into the sky and have blades which are 107 metres long.

The multimillion-pound agreement was signed this week to allow the ORE Catapult to undergo advanced trials of the turbine, helping to create new job opportunities and burnish the UK’s credentials as the go-to destination for offshore wind.

The deal will see the two work closely in areas such as power trains, blades and electrical infrastructure, and also includes a major project to install a grid emulation system. This is designed to test how the large turbines interact with the electricity network.

The UK Government has been a strong supporter of offshore wind, and energy minister Claire Perry welcomed the announcement: "This collaboration is great news and highlights our world-class research and testing facilities…With 22 percent of all investment in European wind projects coming to the UK, the offshore wind industry is exceptionally well placed to boost supplies of home grown clean energy whilst growing new jobs and opportunities."

John Lavelle, CEO of GE’s offshore wind business, said "This is an important agreement because it will enable us to prove Haliade-X in a faster way by putting it under controlled and extreme conditions.”

“Traditional testing methods rely on local wind conditions and therefore have limited repeatability for testing. By using ORE Catapult's facilities and expertise, we will be in a better position to adapt our technology in a shortened time, reduce unplanned maintenance, increase availability and power output, while introducing new features to meet customers' demands," he added.

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Source: GE Renewable Energy

Representatives from both the Food and Agriculture Organisation (FAO) and UN Environment have highlighted the need to change African farming techniques to address food security concerns in the region.

Josef Kienzle, Leader of the Mechanisation task team at FAO commented at a recent conference in Kenya: “There is need for a paradigm shift on intensive crop production since the current methods applied cannot meet the challenges of the new millennium”

Mr Kienzle also urged governments to invest in fertile land, pest upsurges, pollution and sustainable intensification, saying "there is need to integrate sustainable mechanization in collaboration with the private sector to enhance productivity and profitability.”

The use of agricultural tools that result in minimal soil disturbance, organic soil cover and diversification of crops would also benefit agricultural production. Last week the FAO also called for an increase in agro-ecology. Similarly, Richard Mungang, UN Environment's Africa Climate Change Coordinator, has lobbied for an increase in climate smart agriculture to protect African farmers from climate change. Climate change has the potential to reduce Africa’s economy by 75% if no measures are taken to adapt.

He noted: “With climate change in the picture, the negative challenges it poses in the agriculture sector will be compounded by multiple other problems that will lead to food insecurity in the continent”

In an exclusive interview with the Aid & International Development Forum, Dr Munang emphasised the importance of climate smart agriculture.

Projections suggest that Africa’s agricultural sector will experience a 1 degree temperature rise, reducing crop revenue by 14 percent. Dr Munang added that climate smart agriculture could increase yields by 300%, helping to combat climate change.

"Once appropriately exercised, this model could potentially create as many as 17 million jobs annually for Africa's youth and also catalyze an agro-sector projected to be worth 1 trillion US dollars by 2030"

Our sister organisation, the Aid & International Development Forum is hosting its inaugural Africa Climate Smart Agriculture Summit being held on 15-16 May 2018 in Nairobi Kenya. Click here to see other speakers at the Summit and the agenda.

On the 26-27 June 2018, our partners, the Green Sports Alliance will be running the 8th annual Green Sports Alliance Summit in Atlanta at the LEED Platinum Mercedes-Benz Stadium. The Summit brings together hundreds of leaders from professional sports teams, collegiate programs, venue management companies, and other pioneers in environmental stewardship to exchange the latest thinking around greening the sports industry and engaging fans and communities.

The theme for this year’s Summit is “PLAY GREENER™ : Get in the Game” and will focus on taking action that encourages collaborative problem-solving to achieve sustainable change across the sports spectrum. Attendees will engage in multiple skill-building and problem-solving workshops to develop solutions that encourage environmental and social responsibility across operations, supply chains, and fan bases.

Use discount code SIIS0618 to receive $75 off registration here

The 53 leaders of the Commonwealth have agreed to work harder on keeping global temperatures to within 1.5 degrees Celsius.

The official communique from the group, issued after a week of high-level discussions in London, stated their “renewed commitment under the Paris Agreement to keep the increase in global average temperature to well below 2 degrees Celsius” and to pursue efforts to limit the increase to 1.5 degrees below pre-industrial levels. The statement also recognised the threat of climate change, especially to small-island nations, many of whom are Commonwealth members.

Leaders expressed their “grave concern that without urgent action to mitigate climate change, reduce vulnerability and increase resilience, the impacts of climate change could push an additional 100 million people into poverty by 2030.” 

The Commonwealth Heads of Government Meeting (CHOGM) convenes 53 nations, mostly taken from the former British Empire, for a biennial discussion on pressing issues of the day.  

Religious leaders had earlier in the week called for leaders to “turn words into action” on climate change during the summit. 

Sustainability was a strong theme throughout the group’s discussions, which ranged from the need to scale-up green financing, sustainable energy use and sensitive economic development of the oceans. The declaration also “expressed deep concern about the increasingly devastating impact of natural disasters on people and property across the Commonwealth.”

Frank Bainimarama, Prime Minister of Fiji who led the UN’s climate negotiations as President of COP23, said he was “pleased” the Commonwealth has reaffirmed its commitment to climate action.

"We look forward to their support in the year ahead as we work together to raise our ambition to meet the most demanding target of the Paris Agreement, which is to keep the average global temperature increase to within 1.5 degrees above that of the pre-industrial age," he added.

Photo Credit: Foreign Office

FIFA, the international governing body for soccer, is teaming up with the UN to encourage fans to offset their carbon emissions ahead of the 2018 World Cup in Russia.

Ticket holders are being asked to join an online campaign which will see FIFA offset 2.9 tonnes of carbon dioxide equivalent for every signature received. This is calculated as the average emission per fan travelling from abroad to the tournament.

And as an added incentive, all fans who make the pledge will be automatically entered into a prize draw to win two tickets to the World Cup final in Moscow.

FIFA has already committed to offsetting its own emissions from the tournament, but tackling emissions from the millions of fans who travel to attend games is much harder. And as the World Cup is one of the largest and most popular sporting events, the number of emissions produced by fans during the month-long event is very high.

“The Earth’s climate is changing due to human activity. We need to reduce the emissions that enter the atmosphere,” said FIFA’s Secretary General, Fatma Samoura. “FIFA takes its environmental responsibility very seriously. As part of our twofold strategy, FIFA and the Local Organising Committee will offset all of their own operational emissions and, through the climate action campaign launched today, we will also support and engage with fans by neutralising the emissions of those who join us.”

The new campaign follows-on from FIFA’s programme to offset some of the estimated 1.1 million tonnes of carbon emissions from the 2014 World Cup in Brazil. At that time, organisers reduced emissions through a variety of projects, from solar panels on stadium roofs to collecting rainwater for use on pitches and cleaning. The Brazilian government officially offset 39 percent of total emissions by purchasing credits via the UN’s Clean Development Mechanism.

“I commend FIFA for leading by example in reducing the climate impact of the 2018 World Cup and encouraging football fans to act on climate change. Reducing emissions as far as possible and compensating for emissions that cannot be avoided is the best way to score goals for the climate and our common future,” said Patricia Espinosa, Executive Secretary of UN Climate Change.

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            The 2014 World Cup in Brazil produced over 1 million tonnes of carbon emissions

Photo Credit: Trusty Transfers

Wells Fargo will accelerate its commitments to tackling climate change with new plans to support low-carbon and conservation businesses.

The banking behemoth, which has total assets of $1.9 trillion, has pledged to spend $200 billion over the next decade, 50 percent of which will go into renewable energy, clean technologies, sustainable transport, and green bonds. The remainder will finance sustainable agriculture, recycling, and conservation projects.

Wells Fargo CEO Tim Sloan broke the news during a keynote conference speech last week, commenting that the bank is “committed to taking a leadership role in supporting the transition to a low-carbon economy and promoting environmental sustainability through our products and services, operations and culture, and philanthropy.”

The new commitment follows on from its 2012 goal of investing $30 billion in clean technologies by 2020, which it met within three years.

Wells Fargo has also committed to greater transparency on the carbon intensity of its portfolio, and it will regularly report on the impacts of its lending, in line with the recommendations of the Task Force on Climate-related Financial Disclosure.

“With this commitment, we are combining a strong financial goal with enhanced transparency and disclosure practices that we believe will lead to sector-wide progress on responsible, sustainable finance,” Sloan added.

Mindy Lubber, CEO of the non-profit organisation Ceres, said the bank’s new commitments were “significant” and help contribute to the growing momentum within the financial sector to make more investments in clean energy.

“More and more investors and companies understand the economic imperative and strategic long-term benefits of keeping global temperature rise to well-below 2-degrees Celsius,” she added.

In March, Spanish bank BBVA also announced plans to spend €100 billion by 2025 on fighting climate change. HSBC will also invest a similar amount in low-carbon projects.

Photo Credit: Ken Teegardin

Michael Bloomberg, the three-term Mayor of New York City, will meet a $4.5 million shortfall in funding to the UN caused by President Trump’s decision to withdraw from the Paris climate agreement.

In March, the US congress passed its spending bill for 2018 which provided only $3 million to fund the UN’s climate programs, down from its agreed $7.5 million.

Mr Bloomberg, who was recently appointed a Special Envoy for Climate Action to the UN Secretary-General, will make the contribution to the budget through his Bloomberg Philanthropies foundation.

In a statement, the foundation made clear its intention to make additional funds available if the US government failed to meet its financial obligations in 2019.

The money is used to fund the UN’s work in supporting developing countries adapt to the impacts of climate change; promote climate action across society, and address institutional needs in areas such as IT and communications.

President Trump’s planned withdrawal from the landmark Paris Agreement last year has galvanised action in support of climate action. Mr Bloomberg and the Governor of California, Jerry Brown, launched America’s Pledge which unites US states, cities and businesses to continue meeting their obligations as part of the accord.

Mr Bloomberg said: “The US pledged to work with the rest of the world to fight climate change under the Paris Agreement, and that includes providing our fair share of the funding to help countries reach their goals.”

“Our foundation will uphold our promise to cover any cuts to UN climate funding by the Federal government – and the American people will uphold our end of the Paris Agreement, with or without Washington.”

Patricia Espinosa, the Executive Secretary of the UN Climate Change Secretariat, responded: “I welcome this generous contribution from Bloomberg Philanthropies as an important, practical recognition of our need to work together, and to step up our response to climate change.”

“When countries adopted the historic Paris Agreement to limit global temperature rise, they also recognized that achieving that goal would take broad-based global climate action in all sectors, public and private,” she added.

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Photo Credit: Ralph Alswang

The Green Climate Fund has approved over $80 million for three new climate change adaptation projects.

Earlier in 2018, the Green Climate Fund announced funding worth $1 billion for climate adaptation projects. The interagency partnerships led by the United Nations Development Programme will support programmes in Bangladesh, Georgia and Zambia. In total, the projects will catalyse over $239 million towards climate resilience.

Pradeep Kurukulasuriya, the Head of Climate Change Adaptation, UNDP noted: “The approved projects touch on issues related to food security, access to water, and resilient infrastructure,”

“This is a clear demonstration that climate action is critical to advancing and securing development gains.”

In Zambia, the GFC project will support 1 million farmers to build their resilience. In Zambia, climate change will significantly threaten efforts to reduce hunger. In Bangladesh, the project will assist 25,000 women and girls in building more resilient lives.

The project will also ensure safe and reliable drinking water for 130,000 people through community managed rainwater solutions.

The Green Climate Fund previously approved a US$25 million grant to support Bangladesh’s efforts to build the adaptive capacities of vulnerable communities along the cost.

In Georgia, the project will involve the scaling up of early warning systems and climate information services to protect lives from flooding and economic shocks brought on by climate change.

The projects will also receive support from the Food and Agriculture Organization of the United Nations (FAO), World Food Programme (WFP) and the World Meteorological Organization (WMO).

Adriana Dinu, Director, Global Environmental Finance, UNDP commented: “By supporting countries to mobilize partnerships between the Green Climate Fund, important sectors of civil society, and the broader UN System, UNDP is serving as a broker to connect vulnerable nations with the resources, capacity and tools they need to build low-carbon climate-resilient development”

“This will facilitate efforts to achieve climate commitments under the Paris Agreement, as well as make progress against the Sendai Framework on Disaster Risk Reduction and the 2030 Sustainable Development Agenda”

Our sister organisation, Aid & International Development Forum, is hosting its inaugural Africa Climate Smart Agriculture Summit on 15-16th May 2018 in Nairobi, Kenya. The summit will discuss innovations and challenges in CSA practices, increasing cross industry collaboration for CSA, financial investment for CSA and much more.

On Sunday, over 40,000 runners will pound the streets of London in what will be one of the hottest marathons during the event’s 37 year history.

This means the 26.2 mile run will be even more of a thirst-quenching, endurance test than normal with a huge number of drinks bottles and cups distributed to exhausted participants.

Each year, the event goes through hundreds of thousands of bottles, which are liberally distributed to runners as they pass the many drinks stations along the route. The issue of waste and recycling couldn’t be more visible during this incredibly popular event, and organisers are trying to address the problem.

Sunday’s marathon will for the first time trial the use of 90,000 compostable cups along three drink stations as an alternative to using single-use plastic. This is along with 760,000 plastic bottles also available to runners, according to the BBC.

The organisers endeavour to recycle all plastic used, although as the run goes through various London boroughs it can be difficult to organise a unified clean-up operation. A spokesperson told BBC Radio 5 live that using recyclable plastic bottles remains “the best solution for the distribution of water and sports drinks to the more than 40,000 runners, given the very short window of road closures in one of the world's busiest capital cities."

Mike Childs, a campaigner at Friends of the Earth, commented: "the compostable water cups being trialled have the potential to lessen the amount of plastic waste created by the marathon, but there are challenges when it comes to the correct collection and processing of these to ensure they have their full impact".

Photo Credit: Malcolm Murdoch

The small commercial energy storage segment is expected to experience strong growth in regions where economics and policy provide incentives

A new report from examines the global market for small distributed energy storage systems (SDESSs), providing forecasts segmented by region, technology, and building type, through 2027.

As the market for commercial and industrial behind-the-meter distributed energy storage systems (DESSs) continues to mature, participants are seeing a steady decrease in installed costs, along with a variety of other market drivers. For SDESSs (systems 250 kW or less in size) in particular, savings in the form of tariffs and demand charge reduction, as well as policies favoring energy storage, are pushing the market forward in three main regions. : According to a new report from , North America, Western Europe, and Asia Pacific are expected to account for almost 90 percent of cumulative SDESS capacity between 2018 and 2027.

“The benefits of an onsite energy storage system are often lost on small commercial customers, and educating these customers to deploy SDESSs can be a challenging endeavor,” says William Tokash, senior research analyst with Navigant Research. “But vendors are using creative financing mechanisms such as equipment leases and revenue sharing models, coupled with local incentives, to make storage a more realistic option in the small commercial segment.”

During the next decade, energy storage prices are expected to continue a steady decline, while retail electricity rates and supplemental charges are projected to increase and become more common. Combined, these forces are expected to drive large growth in the SDESS market for the next 10 years, however, deployments are still likely to be confined to specific markets where economics and policy are favorable.

The report, , analyzes the global market for SDESSs that are 250 kW or less in size. The study provides an overview of the market developments, drivers, and barriers that are likely to influence the growth of SDESSs. Global market forecasts, segmented by region, technology, and building type, extend through 2027. The report also examines the regional policy trends and business models related to the small commercial energy storage space. An Executive Summary of the report is available for free download on the .

Contact: Stefanie Bradtner

+49.221.270.70.142

* The information contained in this press release concerning the report, Market Data: Small Commercial Energy Storage, is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.

Mercom Capital Group, llc, a global clean energy communications and consulting firm, released its report on funding and mergers and acquisitions (M&A) activity for the Battery Storage, Smart Grid, and Energy Efficiency sectors for the first quarter of 2018.

To get a copy of the report, visit: http://bit.ly/MercomSGQ12018

Battery Storage

Corporate funding in Battery Storage came to $299 million in 12 deals compared to $154 million in six deals in Q4 2017. In a year-over-year (YoY) comparison, $80 million was raised in 10 deals in Q1 2017. 

Venture capital (VC) funding (including private equity and corporate venture capital) raised by Battery Storage companies in Q1 2018 jumped to $299 million in 12 deals from $151 million in five deals in Q4 2017 due to some large deals in the quarter. Year-over-year, funding was significantly higher compared to the $58 million raised in eight deals in Q1 2017. 

The top five VC funded Battery Storage companies this quarter were: Stem, which raised $80 million from Activate Capital; Ionic Materials secured $65 million from Dyson, Samsung, A123, Hitachi, Renualt, Nissan, and Mitsubishi; Durapower secured an investment of $40.18 million from Banpu Infinergy Company and K-IX Ace; Battery Energy Storage Solutions (BESS) received ~$38.5 million in funding from Santander Corporate & Commercial; and $34 million was raised by Solid Energy.

Fifteen investors participated in Battery Storage funding this quarter with Energy Storage Systems companies raising the most. 

There were four M&A transactions involving Battery Storage companies in Q1 2018 and the financial details of the transactions were not disclosed. In Q4 2017 and Q1 2017, there was one M&A transaction each that did not disclose a transaction amount. 

Smart Grid

Corporate funding in Smart Grid came to $1.3 billion in nine deals compared to $796 million in 12 deals in Q4 2017. In a YoY comparison, $164 million was raised in 14 deals in Q1 2017. 

VC funding for Smart Grid companies increased 79 percent in Q1 2018 with $75 million in seven deals compared to $42 million in nine deals in Q4 2017. In a YoY comparison, in Q1 2017 $164 million was raised in 14 deals. 

The top VC funded Smart Grid companies included: Bidgely, which secured $27 million from Georgian Partners, Khosla Ventures, E.ON, innogy, and Constellation Technology Ventures; Husk Power Systems received an equity investment of $20 million from Shell Technology Ventures, Swedfund International, and ENGIE Rassembleurs d’Energies; and Mnubo raised $16.5 million from HSB Group. 

Fifteen investors participated in Smart Grid VC funding rounds this quarter with SG Communications companies raising the most. 

A combined $1.3 billion was raised in two debt financing deals in Q1 2018, compared to $754 million raised in three deals in Q4 2017. 

One M&A transaction was announced in Q1 2018 and it did not disclose a transaction amount, compared to eight transactions (two disclosed) in Q4 2017. In a YoY comparison, there were seven M&A transactions in Q1 2017. 

Efficiency

Corporate funding in Energy Efficiency came to $104 million in five deals compared to $916 million in 14 deals in Q4 2017. In a YoY comparison, $514 million was raised in 17 deals in Q1 2017. 

VC funding raised by Energy Efficiency companies in Q1 2018 remained steady at $98 million in four deals compared to $95 million in 10 deals in Q4 2017. In a YoY comparison, $213 million was raised in 14 deals in Q1 2017. 

The Top Efficiency deals included: $61 million raised by ecobee from Energy Impact Partners and eight institutional investors including Thomvest, Relay Ventures, and the Amazon Alexa Fund; the $27 million raised by Carbon Lighthouse from GRC SinoGreen Fund, JCI Ventures, SV Tech Ventures, EBay founder Pierre Omidyar’s Ulupono Initiative, Ekistic Ventures, Tom Steyer’s Radicle Impact Partners, former General Motors Vice Chairman Steve Girsky, and Tesla Chief Technology Officer Jeffrey B. Straubel; and the $10 million received by Petros PACE Finance from former Major League Baseball player Alex Rodriguez and his investment firm A-ROD.

Fifteen investors participated in VC funding this quarter. Within the sector, Temperature Control companies brought in the most funding. 

Debt and public market financing for Efficiency companies fell to $6 million in one deal this quarter compared to $621 million in three deals in Q4 2017. 

In Q1 2018, there was one M&A transaction (transaction details not disclosed) while in Q4 2017, there were three M&A transactions (all undisclosed). In Q1 2017, there were four M&A transactions in the Energy Efficiency sector, two of which disclosed transaction details. 

To get a copy of the report, visit: http://bit.ly/MercomSGQ12018

About Mercom Capital Group

Mercom Capital Group, llc, is a global communications and research and consulting firm focused on cleantech. Mercom delivers market intelligence and funding and M&A reports covering Battery Storage, Smart Grid and Energy Efficiency, and Solar, and advises companies on new market entry, custom market intelligence and strategic decision-making. Mercom's communications division helps companies and financial institutions build powerful relationships with media, analysts, local communities, and strategic partners. About Mercom: http://www.mercomcapital.com. Mercom's clean energy reports: http://store.mercom.mercomcapital.com/page/

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>> VILLAGE OF MINSTER, OHIO, UNITED STATES 

Using project financing as a yardstick, solar PV continues to lead non-hydro clean energy investment in the region given the abundance of solar resources, its increasing cost-competitiveness and its developing market.

Advanced energy storage refers to the process of storing electricity after converting it into energy.

According to new data from GTM Research, global solar tracker shipments hit a record 14.5 gigawatts in 2017. This represents growth of 32 percent year-over-year.

Solar PV Mounting Systems Market size for 2016 was valued over USD 6 billion and is predicted to witness growth over 6% by 2024.

WHAT ARE THE INDICATORS? 

The IRENAs Cost and Competitiveness Indicators for rooftop solar (IC&CI or “indicators” hereafter) are a series of indicators of solar photovoltaic (PV) costs compared to electricity rates. 

The solar PV market is one of the fastest moving renewable energy markets, with high learning rates of 18% to 22% (for PV modules) combined with rapid deployment resulting in rapidly falling costs (IRENA, 2016). As a consequence, there is a clear need for up-to-date analysis of the evolving competitiveness of solar PV in different markets. 

The IC&CIs are designed to inform government, policy makers, regulators and others about recent trends in the competitiveness of solar PV. The goal of the indicators is to aid decision makers in designing, adopting or sustaining renewable energy policies to support solar PV deployment. The results are based on a simple and transparent analysis of reliable cost and performance data, which are updated on a quarterly basis. The indicators consist of three key components: 

1. PV installed cost trends, 

2. Effective electricity rate when the solar PV system is generating, and 

3. The location-specific levelised cost of electricity (LCOE) of the PV system. Notably, the IRENA indicators for rooftop solar PV are not an attempt to identify the direct economic or financial benefits of solar PV in the market segments examined, either for the owner of the solar PV system or for the utility. The detailed data required to accurately assess these values are beyond the scope of this analysis.¹⁷ The indicators are designed instead to show the evolution of the costs of solar PV systems in different markets and to compare these to a proxy of the value of solar PV (on the basis of electricity tariffs) to identify competitiveness. 

First and foremost, the analysis is designed to help inform policy makers about the trends in solar PV competitiveness. As a result, although support policies are discussed for each market, their impact on a system owner’s financial situation is not analysed. The IC&CI are, however, also designed to be a vehicle for examining special topics around solar PV costs and deployment, so these issues may be discussed in future editions of the indicators. 

WHY DEVELOP THESE INDICATORS? 

Commercially available solar PV systems have benefited from almost half a century of development and are today a mature and proven technology. Yet PV costs continue to fall rapidly in some markets. 

PV is one of the fastest growing renewable power generation technologies and has experienced strong progress in cost reduction. PV modules have fallen in price by around 80% since 2010, with somewhat lower percentage reductions in total installed costs at the rooftop and utility-scale levels (IRENA, 2016). A range of studies has confirmed the competitiveness of solar PV in different markets, such as Germany. Yet, there is also a lack of regularly updated analysis in the public domain for important markets. 

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An accurate understanding of the evolution of solar PV competitiveness in different markets is critical to ensuring both efficient and effective support policies. The IC&CI are therefore designed to help fill the significant gap in available analysis, by analysing current cost and performance data. 

To make the analysis as useful as possible to policy makers, the IC&CI use a series of simple indicators. These still require very detailed modelling, however, combined with transparent methodological assumptions and data. This ensures that policy makers have the best possible analysis to allow them to make informed decisions on the role that distributed solar PV can play in their energy system. 

The IC&CI are part of IRENA’s cost analysis programme’s core products and are designed to leverage the data available in the IRENA Renewable Cost Database and other sources. By focusing on analysis that has direct relevance to policy makers (rather than just reporting installed cost trends) and doing so in a timely manner, the indicators are designed to provide IRENA’s Member States and others with timely and useful supporting analysis.

This analysis is particularly topical. Once the LCOE of residential solar PV falls below tariff levels, even in the absence of support measures, installing residential PV systems in order to self-consume PV electricity becomes increasingly attractive. Understanding when this occurs is critical for policy makers and utilities, as small-scale distributed solar PV is a potentially disruptive technology.  

At low levels of penetration, solar PV owners and utilities can benefit from solar PV deployment. Customers can reduce their bills and utilities can enjoy lower distribution losses, deferring investments in distribution capacity and in some cases transmission capacity. As solar PV’s penetration grows, however, the strong economic incentive for individuals or organisations to install solar PV can affect the balance between costs and income in the system and undermine the existing utility model. As such, utilities start to look more closely at the impacts of solar PV on their profitability, and questions about the appropriate market design can become very important. (IRENA, 2017b) 

Understanding these issues well in advance of a market shift will allow policy makers, utilities, regulators and potential solar PV owners to have a balanced debate and analysis of all the direct and indirect costs and benefits of solar PV deployment. They also can understand how the regulatory and support structure needs to adapt to the rise of solar PV, over time. This challenge will only become more pressing as electricity storage costs continue to decline, increasing the potential for self consumption of solar PV generation.

HOW ARE THE INDICATORS CALCULATED?

To ensure that the analysis is as accessible as possible to policy makers, it is based on a simple set of three indicators: 

1. Solar PV installed costs: data for individual systems by country – and in some cases by city – and by market segment (e. g., residential). The analysis is focused on examining trends in installed costs at a relatively granular geographic level (i. e., at the city or state level, where data are available).

2. An indicator of the value of solar PV as measured by mapping the hourly output of the PV system to time-of-use (TOU) tariff rates (if in effect) over the 8 760 hours in a year, assuming an average meteorological year. This is done using freely available modelling software that is specifically adapted to the task. 

3. An analysis of the LCOE of the solar PV systems for comparison with the indicator of electricity value, assuming a 5% cost of capital. This is based on a methodological approach that has been used by IRENA over a number of years.

In all cases, the analysis does not include the impact of policy support. This is because the goal is to inform policy makers about any gaps in the level of competitiveness. Where policy support is in place, the relative economics will be better than that implied by the indicators – sometimes significantly so. 

Despite focusing on a set of simple metrics, the analysis and modelling itself can be very complex. This is because of the very granular analysis of costs, performance and competitiveness undertaken at a city/state level. In addition, the sophisticated modelling required to analyse hourly output over the 8  760 hours in a year, while identifying the associated electricity tariff in force in each of those hours, is also a complex procedure. This identification depends on tariff schedules, location, user demand profile for electricity and other factors. 

The details of the methodology and definitions used in the IC&CI series can be found in Annex 1 and will be available online in subsequent IC&CI updates.

WHICH MARKETS WILL BE COVERED? 

The IC&CI series is being launched with an analysis of residential PV in the markets of California and Germany. 

These markets have been chosen because they provide interesting contrasts in terms of costs and electricity tariff structures for residential consumers. Good time-series data are also available for all the relevant parameters. Future editions of the IC&CI will include other markets but may not have the same granularity, given more challenging data collection issues. 

This first edition provides indicators for the four largest metropolitan areas in California (Los Angeles, San Francisco, San Diego and San Bernardino) as well as five cities in Germany (Cologne, Berlin, Frankfurt, Hamburg and Munich). The locations in California cover the full range of utilities in the state, which has become one of the most important renewable energy markets worldwide. This first edition also provides indicators for Germany, which remains one of the most competitive residential solar PV markets globally. Additional markets will be added in forthcoming editions of the IC&CI.

Eventually, the analysis could be extended to other market segments, such as commercial rooftop systems, but this is not envisaged in the near future, given the resources required to undertake this extension of the IRENA indicators.

The solar photovoltaic (PV) panels are used, as eco-friendly and renewal energy based power generation technologies around the world.

Background

The Directorate General of Safeguards (DGS) has recommended a provisional safeguard duty of 70% for 200 days on imports of ‘solar cells whether or not assembled into modules’ from all (except developing) nations. However, duty will be imposed on imports from People’s Republic of China and Malaysia despite being a part of developing countries. The safeguard duty investigation (Custom Tariff – Rule 5) was initiated by the Indian Solar Manufacturers’ Association (ISMA) which has requested the imposition of safeguard measures for four years with a request for a provisional safeguard duty while the final decision is still awaited.

Key conclusions

The imposition of a safeguard duty will make imported modules 1.5 times costlier than domestic modules (current prices), which will require minimum bid tariffs of Rs 3.6-4.0 per unit.       

Procurement of domestic modules would increase tariffs by Rs 0.4-0.65 per unit (at current prices) from the current ~Rs 2.5 per unit. However, supply-demand dynamics may lead domestic manufacturers to charge a premium on their products, triggering further increase in capital costs.

The duty will increase price competitiveness of domestic modules, with local and foreign manufacturers expected to expand/install capacities over the next one-three years in view of the increased demand opportunity.       

Consequently, bid tariffs may rise in the near term (~Rs 0.4 – 1.5 per unit, depending on the source of modules) which would lower the competitiveness of solar power versus coal-based power. Over the long term, costs may decline again once supply-demand dynamics settle and operational benefits such as economies of scale, cost rationalization etc. accrue to domestic module manufacturers.       

Capacity additions are expected to continue with a temporary blip, if at all. However, future bid tariffs could factor in the increased cost while existing projects hope for an exemption under the ‘change in law clause’.  

Tariffs may rise in the near term

The recommended 70% safeguard duty would increase the landed cost of imported modules from Rs 24.8 per wattpeak (wp) to Rs 42.1 per wattpeak. Considering that China PR and Malaysia are the main exporters of modules with 88% and 7% export share, respectively in fiscal 2017, developers would require minimum bid tariffs of Rs 3.6-4.0 per unit for solar projects constructed on such imported modules to clock an equity internal rate of return (IRR) of 9-12%.

The above-mentioned capital costs do not factor in the 7.5% customs duty plus 10% surcharge.The reclassification of modules has increased duty on imported modules from the zero duty earlier. As a consequence, if both safeguard and custom duties are factored, capital cost based on imported modules (except from exempted countries) will reach Rs 54-55 million per MW, requiring a further increase in tariffs.

Over the next six months, ~6.5 GW of capacities are expected to be tendered, which may see bid tariffs factor in this risk. Further, 3.5 GW of solar projects worth over Rs 120 billion (at the current capital cost) are at risk of lower returns or default, in case the government / electricity commissions do not provide relief via the change in law clause.

If developers bid at tariffs based on domestic modules at current prices, Rs 2.9-3.15 per unit would be required for equity IRR of 9-12%. However, domestic capacity for cells and modules is inadequate to meet the burgeoning domestic solar power demand.

Module supply could switch to domestic market; indigenous module capacities may flourish over the medium term

As the safeguard duty exempts other developing nations, solar project developers and module manufacturers may still import modules and solar cells, respectively from other regions such as Vietnam and Thailand, where several large foreign players have recently expanded. This may help solve, in the interim, the supply-demand deficit. However, pricing and technology would still remain the key monitorable in this regard.

Additionally, with inadequate domestic capacities (6.5 GW of average annual operational capacity versus 8 GW of average annual demand over fiscals 2017 to 2020), manufacturers would position their products at a premium due to demand-supply deficit. This would further increase prices of domestic modules and tariffs in the near term until domestic supply is sufficient and manufacturers benefit from a lower cost of production.

Domestic module manufacturers may charge below the 70% hike on imported modules, but this would depend on the demand-supply dynamics based on factors such as imports from other regions, domestic supply and inventories with both module manufacturers and solar project developers.

Supply deficit of solar cells and modules viz a viz demand from domestic solar capacity additions  Source: CRISIL Research 

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At the cell stage, the installed capacity has always trailed modules, and the capacity utilisation has averaged ~50% for cell manufacturers and ~60% for modules, respectively. Hence, as the safeguard duty would be on solar cells and not solar wafers, the production capacity of solar cells would need to match that of solar modules; otherwise cells would still need to be imported to manufacture modules domestically.

Even if we factor in capacity expansion announcements by domestic players, new capacity and expansion projects would take at least a year for implementation. Hence, domestic capacity expansion would happen over the next one-three years. Players such as Adani, Vikram, Waaree, Tata and BHEL can benefit from the opportunity and strengthen their capacities to meet higher demand.

Additionally, Chinese players such as Longi Solar, Trina Solar etc. have expressed interest in setting up Indian manufacturing units in the past, which would make more economical sense with the duty. Their units in India would also have access to upstream inputs (wafers, polysilicon and silica) from their own facilities elsewhere, as no duty is proposed on these items as of yet. With a lack of indigenous manufacturing capabilities for these inputs, domestic manufactures would have to purchase these, which may still lead to a price differential. 

Solar power to move from being the most competitive power source

Currently, the average solar power tariff is near Rs 2.6 per unit and was expected to stay at Rs 2.5-3.0 per unit in fiscal 2018, considering all factors remained same. This is 20% lower than average coal-based power tariffs across major states and ~40% lower than the last competitively bid thermal auction of June 2015 for Andhra Pradesh’s 2400 MW. However, with the imposition of duty, solar tariffs would close the gap. Despite being lower than thermal, the competitiveness between solar and other REsources such as wind would reduce. However, capacity additions would continue with a minor blip if at all, as players are expected to factor in higher costs going ahead.

Solar power tariffs rise to narrow the differential versus coal and other RE tariffs 

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Note: Coal-based tariff is for the competitively bid auction of June 2015 for Andhra Pradesh’s 2400 MW based on domestic coalSource – CRISIL Research

By,Rahul Prithiani Director, CRISIL This email address is being protected from spambots. You need JavaScript enabled to view it.

Indian Renewable energy sector got a major boost when the Government of India revised the National Solar Mission target of Grid Connected Solar Power projects from 20 GW to 100 GW by 2022, which is the world’s largest Renewable Energy expansion programme.

New integrated smart home and distributed energy resources solutions are expected to revolutionize the way people interact with their homes and the Energy Cloud

A new report from examines the evolution occurring in technology and customer-focused solutions for residential utility customers, analyzing how traditional business models are being disrupted.

As the grid evolves into a cleaner, more distributed, and intelligent infrastructure, incumbent utilities are looking to deliver new customer-focused products and services. For some customers, developing a different relationship with their existing utility could provide the best solutions for their needs, while for others, the best option might be working directly with a new technology market entrant. : According to a new report from , new solutions-based business models and technology providers are expected to transform the residential utility market.

“The confluence of new distributed energy resources (DER) and smart home technology has created smarter, greener, and more resilient energy options for residential utility customers,” says William Tokash, senior research analyst with Navigant Research. “These new solutions will revolutionize the way people interact with their homes while also extending the role that residential DER can play in the Energy Cloud.”

For utilities, solutions-based business models that rely on technology platforms offer new opportunities with the potential to scale faster and yield greater profit margins. For non-utility technology disruptors, the integration of smart home and home energy technology coupled with the rise of big data analytics offers opportunities to meet changing customer needs and the potential to partner with utilities for success.

The report, , examines the evolution occurring in technology and customer-focused solutions for residential utility customers. The study analyzes DER, mobility, community energy, and smart home/home energy technology trends that are creating the need for new residential utility customer solutions. It also discusses how traditional utility models for residential customers are being impacted, as well as the new customer segments and business models arising from these trends. An Executive Summary of the report is available for free download on the .

Contact: Stefanie Bradtner

+49.221.270.70.142

* The information contained in this press release concerning the report, Maximizing the Residential Energy Customer Experience with Emerging Solutions, is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.

"With Recent Advancements In Energy Storage Technology, How Will Indian Solar Sector Shape Up?"

Pg18 Perspective Sujoy Ghosh Country Head First Solar India

Mr.Sujoy Ghosh, Country Head, First Solar, India

2017 is shaping up to be a record year for solar PV installations worldwide as well as in India. We have also witnessed sub 2cents/kwhr tariffs in auctions in Saudi Arabia and Mexico for projects that are expected to be commissioned over the next 24-30 months, thereby creating a further compression in the overall value chain that needs to be met by equipment suppliers, financing agencies and the service providers (engineering, procurement and O&M).  Hence the companies that continue to focus on reducing costs, increasing scale and lowering their cost of capital/cost of doing business would be able to sustain through these times. Specifically on the PV module technology, the focus would remain on lowering of cost of production by either optimizing manufacturing processes, and/ or leveraging economies of scale. Also with the transition to more installations between the two tropics, there would be equal focus on long term reliability under harsher climates (hot and humid) and quality and consistency of processes would be under increased scrutiny from the end users. 1500V inverters would probably increase their market share as plant owners try to exploit every ounce of optimization feasible in order to achieve lower LCOE’s, while the scale of the blocks increase due to average increase in project capacities. 2018 would also see a an increased focus on hybridization of PV systems with storage or other forms of generation as grid capacity congestion issues begin to start becoming noticeable with the growth in both solar and wind in the recent past.

Pg18 George John mytrah

Mr. George John,Head -Mytrah Global Services,Mytrah Energy

Reverse bidding has become a norm in the renewable energy sector. The low tariffs especially pertaining to Solar sector can be attributed to the decreasing cost of solar modules due to advancement in technology. However, it is noteworthy that even today, most of our capacity comes
from Chinese manufacturers. The heavy emphasis by the government on ‘Make In India’ initiative is expected to drive the domestic manufacturers into building capacities to compete with the Chinese manufacturers. This would increase the self-reliance of the Solar sector by reducing dependencies.Intermittence in energy supply has been an age-old characteristic of renewable energy sector. Although Solar provides a more predictive forecast based on seasonality and time of the day, the power generation remains intermittent. The increasing global awareness on Battery storage and the technological innovations in this sector is bound to impact the Solar sector in the coming year. A successful breakthrough in terms of balancing the capacities and cost will make Solar sector more profitable in future. With Global companies such as Tesla overlooking Battery Storage innovations,this future might not be too far away.From an investment standpoint, Rooftop Solar has gained momentum and this trend is expected to continue into 2018. Rooftop Solar has seen investment from small scale investors as well, since it provides energy security coupled with government incentives.Another interesting trend we expect to see in Solar sector, especially in the near future, is the rise of smart grid solutions and Hybrid models using both wind and solar power generation. The increasing use of digitalization has already reached the Solar sector and we expect to see increased efficiencies because of this.In conclusion, 2018 will be an interesting year for Solar sector from supply chain point of view as well the enhanced efficiencies.

Pg17 Perspective SIndicatum

Mr. Devin Narang Country Head-India Sindicatum Renewable Energy Company.

Globally, India has probably the most robust policies in place for all forms of Renewable energy. What can be expected in 2018 borrows heavily from the initiatives the Government has in store for the sector. Specific targets and a well-defined roadmap to achieving them are encouraging. Addition of power generation capacity – especially through solar parks; building of domestic manufacturing capacities; refinements in Solar Policy (for utility scale & rooftop systems) and Bid Document – in particular, with regard to applicable duties and taxes; resolution of State-specific project development bottlenecks; and enhanced bankability of projects -  these are some initiatives in the offing by the Government. Technology, on the other hand has also grown steadily, reflecting in increased component efficiencies at competitive prices. However, with regard to PV modules, prices are expected to pick up from the lows seen hitherto while stabilizing at the optimum. Although the Indian market is nascent when it comes to Storage, it would be interesting to see how solar projects combined with storage sustain in the long run. Finally, two (interconnected) aspects that need concerted initiative from different stakeholders are: creation of energy demand and ensured energy offtake. Schemes such as ‘Deen Dayal Upadhyaya Gram Jyoti Yojana’ (DDUGJY) and ‘Ujwal Discom Assurance Yojana’ (UDAY) have been important enabling factors from a macro perspective. Such developments have spurred growth in the sector – which stands at 15GW plus installed capacity on date. The achievement of 100GW of solar isn’t far.

Deployment of utility-scale Renewable Energy, particularly Wind and Solar Power, has progressed rapidly over the last few years despite recent challenges.

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Mr. Vivek Mishra Executive Director Meghraj Capital Advisors Private Limited
 
I foresee Solar attracting maximum investment in the next five years. Solar is the thrust area for GOI for achieving RE targets. The Ecosystem required for its growth has been put in place. The project risks and their mitigation strategies are known.  Solar because of viable tariffs and matured technology has attracted the interest of investors.  
 
The Government of India has set a renewable energy target of 175 GW to be achieved by 2022 of which solar will contribute 100 MW. India’s RE capacity at the end of FY17 was about 57 GW with wind contributing more than half of it, but Solar is gaining ground steadily. If the RE target has to be achieved, the current RE capacity has to triple in the remaining five years. As expected, major capacity contribution has to come from Solar (both IPP and rooftop), where the capacity has to increase at least nine times. In order to facilitate this, Government has put in place conducive policies & programmes (Eg. Solar Park and JNNSM), introduced infrastructure initiatives such as Green Corridors for evacuation from solar rich regions, created a demand push through increased solar RPO (from 2.5% to 8%) for obligated entities, promotion of solar pumps and other solar products, created capacity through Surya Mitra Program and facilitated development of indigenous manufacturing capability through Make in India and push to solar R&D. Government has exempted solar projects from environmental clearances and has facilitated the acquisition of land through Solar Parks. So far 34 Solar Parks in 21 states with a total capacity of 20,000 MW have received in-principle approval under Phase I of the initiative and under Phase II additional 20,000 MW has been approved.
 
Solar rooftop is attractive for Commercial and Industrial consumers as their retail tariffs are considerably higher than the cost of generation in most of the states. These consumers have added significant capacity under capex model. For residential consumers the payback period is still high; however, in future as retail tariffs increase, the solar rooftop will be an attractive proposition for them as well. 
 
It has been estimated that Solar will require investment of around INR 4800 billion, if it has to achieve the target. Fortunately the ever decreasing generation cost, established technology and growing demand has attracted strategic and financial investors, venture capitalists, private equity and pension funds. This has led to flow of investment and adoption of low cost financial innovations such as green bonds.  The solar industry is expected to mature with consolidation and see emergence of professionally managed relatively firms.
 
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Mr. Rahul Goswami, Managing Director, Greenstone Investment Bank
 
Greenstone expects utility scale solar and wind projects to continue to dominate the renewable energy investment sector in India over the next five years. We believe this will be driven by a number of factors:
 
First, the cost of electricity from solar and wind projects has achieved grid parity and the long-term trend suggests that costs will continue to decline. Consequently, we do expect substantial tenders for additional capacity and for utilities to increase their focus on integration and management. 
 
Second, there is substantial existing capital available to fund projects. Several established platforms have sufficient capital lient the appetite to grow substantially. Additionally, the sector continues to witness increasing interest from international groups. 
 
Third, transmission capacity is sufficient to absorb an additional 10 GW+ of intermittent generation based on feedback from industry consultants. Consequently, assuming the other areas can be appropriately managed (such as land acquisition), we do not see significant near term transmission hurdles for renewable energy. 
 
Ultimately, the utility scale renewable energy markets have matured substantially and our expectation is that robust capacity addition will continue over the next five years. 
 

Developers face varied challenges in building and managing a rooftop solar asset portfolio and some of the key challenges have been highlighted below.

Issuances of bonds, non-convertible debentures (NCDs) included have been witnessing record volumes for past 3 years.

Impact Of GST On Solar Sector

Key Driving factors for falling bids in india

“A road map has been laid out to set up at least 50 solar parks, each capacity of 500 MW. How do you think the solar parks in India are shaping up?”

Ecoprogetti srl is the leading manufacturer of complete Turnkey Line for module manufacturing.

Growth Opportunities in the Indian PV Market & Requirement of Indian Module Companies

Mercom Capital Group, llc, a global clean energy communications and consulting firm, released its report on funding and mergers and acquisitions (M&A) activity for the Battery Storage, Smart Grid, and Energy Efficiency sectors for the first quarter of 2018.

To get a copy of the report, visit: http://bit.ly/MercomSGQ12018

Battery Storage

Corporate funding in Battery Storage came to $299 million in 12 deals compared to $154 million in six deals in Q4 2017. In a year-over-year (YoY) comparison, $80 million was raised in 10 deals in Q1 2017. 

Venture capital (VC) funding (including private equity and corporate venture capital) raised by Battery Storage companies in Q1 2018 jumped to $299 million in 12 deals from $151 million in five deals in Q4 2017 due to some large deals in the quarter. Year-over-year, funding was significantly higher compared to the $58 million raised in eight deals in Q1 2017. 

The top five VC funded Battery Storage companies this quarter were: Stem, which raised $80 million from Activate Capital; Ionic Materials secured $65 million from Dyson, Samsung, A123, Hitachi, Renualt, Nissan, and Mitsubishi; Durapower secured an investment of $40.18 million from Banpu Infinergy Company and K-IX Ace; Battery Energy Storage Solutions (BESS) received ~$38.5 million in funding from Santander Corporate & Commercial; and $34 million was raised by Solid Energy.

Fifteen investors participated in Battery Storage funding this quarter with Energy Storage Systems companies raising the most. 

There were four M&A transactions involving Battery Storage companies in Q1 2018 and the financial details of the transactions were not disclosed. In Q4 2017 and Q1 2017, there was one M&A transaction each that did not disclose a transaction amount. 

Smart Grid

Corporate funding in Smart Grid came to $1.3 billion in nine deals compared to $796 million in 12 deals in Q4 2017. In a YoY comparison, $164 million was raised in 14 deals in Q1 2017. 

VC funding for Smart Grid companies increased 79 percent in Q1 2018 with $75 million in seven deals compared to $42 million in nine deals in Q4 2017. In a YoY comparison, in Q1 2017 $164 million was raised in 14 deals. 

The top VC funded Smart Grid companies included: Bidgely, which secured $27 million from Georgian Partners, Khosla Ventures, E.ON, innogy, and Constellation Technology Ventures; Husk Power Systems received an equity investment of $20 million from Shell Technology Ventures, Swedfund International, and ENGIE Rassembleurs d’Energies; and Mnubo raised $16.5 million from HSB Group. 

Fifteen investors participated in Smart Grid VC funding rounds this quarter with SG Communications companies raising the most. 

A combined $1.3 billion was raised in two debt financing deals in Q1 2018, compared to $754 million raised in three deals in Q4 2017. 

One M&A transaction was announced in Q1 2018 and it did not disclose a transaction amount, compared to eight transactions (two disclosed) in Q4 2017. In a YoY comparison, there were seven M&A transactions in Q1 2017. 

Efficiency

Corporate funding in Energy Efficiency came to $104 million in five deals compared to $916 million in 14 deals in Q4 2017. In a YoY comparison, $514 million was raised in 17 deals in Q1 2017. 

VC funding raised by Energy Efficiency companies in Q1 2018 remained steady at $98 million in four deals compared to $95 million in 10 deals in Q4 2017. In a YoY comparison, $213 million was raised in 14 deals in Q1 2017. 

The Top Efficiency deals included: $61 million raised by ecobee from Energy Impact Partners and eight institutional investors including Thomvest, Relay Ventures, and the Amazon Alexa Fund; the $27 million raised by Carbon Lighthouse from GRC SinoGreen Fund, JCI Ventures, SV Tech Ventures, EBay founder Pierre Omidyar’s Ulupono Initiative, Ekistic Ventures, Tom Steyer’s Radicle Impact Partners, former General Motors Vice Chairman Steve Girsky, and Tesla Chief Technology Officer Jeffrey B. Straubel; and the $10 million received by Petros PACE Finance from former Major League Baseball player Alex Rodriguez and his investment firm A-ROD.

Fifteen investors participated in VC funding this quarter. Within the sector, Temperature Control companies brought in the most funding. 

Debt and public market financing for Efficiency companies fell to $6 million in one deal this quarter compared to $621 million in three deals in Q4 2017. 

In Q1 2018, there was one M&A transaction (transaction details not disclosed) while in Q4 2017, there were three M&A transactions (all undisclosed). In Q1 2017, there were four M&A transactions in the Energy Efficiency sector, two of which disclosed transaction details. 

To get a copy of the report, visit: http://bit.ly/MercomSGQ12018

About Mercom Capital Group

Mercom Capital Group, llc, is a global communications and research and consulting firm focused on cleantech. Mercom delivers market intelligence and funding and M&A reports covering Battery Storage, Smart Grid and Energy Efficiency, and Solar, and advises companies on new market entry, custom market intelligence and strategic decision-making. Mercom's communications division helps companies and financial institutions build powerful relationships with media, analysts, local communities, and strategic partners. About Mercom: http://www.mercomcapital.com. Mercom's clean energy reports: http://store.mercom.mercomcapital.com/page/

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Sector adds record 167 gigawatts (GW) of generating capacity, expands 8.3% in 2017

Mercom Capital Group, llc, a global clean energy communications and consulting firm, released its report on funding and merger and acquisition (M&A) activity for the global solar sector in the first quarter of 2018. Total corporate funding (including venture capital funding, public market, and debt financing) into the solar sector in Q1 2018 fell 65 percent quarter-over-quarter (QoQ) to $2 billion from the $5.7 billion raised in Q4 2017. Year-over-year (YoY), Q1 2018 funding was 38 percent lower than the $3.2 billion raised in Q1 2017.

To learn more about the report, visithttp://bit.ly/MercomSolarQ12018

“After a strong fourth quarter in 2017, financial activity slowed again in Q1 2018 to the post-tariff announcement levels of last year as uncertainties and a lack of clarity in the markets took a toll on investments,” commented Raj Prabhu, CEO of Mercom Capital Group. “The bright spot during Q1 was a record-high number of solar project acquisitions, proving that solar power generation is a sought-after asset class.” 

Global VC funding (venture capital, private equity, and corporate venture capital) for the solar sector fell 75 percent QoQ to $161 million in 22 deals compared to the $639 million raised in 30 deals in Q4 2017. The amount raised was also lower YoY compared to the $588 million raised in 23 deals in Q1 2017. 

The majority of the VC funding raised in Q1 2018 went to solar downstream companies with $124.5 million in 18 deals.

The top VC deals in descending order included: $55 million raised by Off Grid Electric, $25 million raised by d.light design, $23 million secured by Solaria Corporation, $12.5 million raised by Renewable Properties, $11 million raised by Kiran Energy Solar, and M-KOPA’s $10 million deal. A total of 30 VC investors participated in solar funding in Q1 2018. 

Solar public market financing came to $103 million in four deals in Q1 2018, a steep decline QoQ from the $657 million raised in 10 deals in Q4 2017. It was also significantly lower YoY than Q1 2017 when $461 million was raised in 13 deals. Sky Energy had the only solar IPO in Q1 2018. 

Announced debt financing totaled $1.8 billion in 17 deals during the first quarter of 2018. In a QoQ comparison, 23 deals were announced in Q4 2017 for a total of $4.4 billion. YoY, $2.2 billion was raised in 25 deals in Q1 2017. Most of the debt raised in Q1 2018 was by solar downstream companies. 

Large-scale project funding announced in Q1 2018 totaled $2.7 billion in 58 deals, down from $3.7 billion in 49 deals announced in Q4 2017. In a YoY comparison, $2.6 billion was raised in 33 deals in Q1 2017.

Just one residential and commercial solar fund was announced in Q1 2018 (for $400 million), compared to $213 million raised in three funds in Q4 2017. During the same quarter of last year (Q1 2017), $630 million was raised in six funds. 

There were 19 solar M&A transactions announced in Q1 2018 compared to 13 transactions in Q4 2017 and 29 transactions in Q1 2017. Of the 19 total transactions in Q1 2018, 10 involved solar downstream companies. 

There were 80 large-scale solar project acquisitions (16 disclosed for $1.9 billion) in Q1 2018 compared to 67 transactions (26 disclosed for $3.7 billion) in Q4 2017. In a YoY comparison, 49 transactions (18 disclosed for $1.9 billion) were announced Q1 2017. About 7.7 GW of large-scale solar projects were acquired in Q1 2018 compared to 5.8 GW acquired in Q4 2017. There were 20 investment firms and funds that acquired 24 projects in Q1 2018, totaling 1.2 GW, followed by utilities and IPPs where 13 companies picked up 30 projects totaling 1.3 GW. Twelve Project developers acquired 14 projects for 3.4 GW during the quarter.

There were 328 companies and investors covered in this report. It is 87 pages in length, and contains 64 charts, graphs and tables.

To learn more about the report, visit: http://bit.ly/MercomSolarQ12018

About Mercom Capital Group

Mercom Capital Group, llc, is a global communications and consulting firm focused exclusively on clean energy and financial communications. Mercom’s consulting division advises cleantech companies on new market entry, custom market intelligence, and overall strategic decision making. Mercom’s consulting division also delivers highly respected industry market intelligence reports covering Solar Energy and Smart Grid technology. Our reports provide timely information on industry happenings and ahead-of-the-curve analysis for C-level decision makers. Mercom’s communications division helps clean energy companies and financial institutions build powerful relationships with media, analysts, government decision makers, communities, and strategic partners. For more information about Mercom Capital Group, visit: http://www.mercomcapital.com. To receive a copy of Mercom’s popular weekly market intelligence reports, visit: http://eepurl.com/cCZ6nT.

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Battery Storage companies secure $714 million; Smart Grid companies bring in $422 million; and Energy Efficiency companies receive $384 million

Mercom Capital Group, llc, a global clean energy research and communications firm, released its report on funding and mergers and acquisitions (M&A) activity for the Battery Storage, Smart Grid, and Energy Efficiency sectors for 2017. 

To get a copy of the report, visit: http://bit.ly/MercomSGQ42017

In 2017, a combined $1.5 billion was raised by Battery Storage, Smart Grid, and Energy Efficiency companies, an increase from the $1.3 billion raised in 2016.

Battery Storage

In 2017, VC funding into Battery Storage companies almost doubled to $714 million raised in 30 deals from the $365 million raised in 38 deals in 2016, largely due to the $400 million Microvast deal. Total corporate funding, including debt and public market financing, rose to $890 million compared to $540 million in 2016. 

Energy Storage Downstream companies received the most funding with $68 million followed by Lithium-based Battery companies with $65 million.

The top VC funded companies included: Microvast Power Systems with $400 million, Battery Energy Storage Solutions (BESS) with $66 million, Forsee Power brought in $65 million, Advanced Microgrid Solutions (AMS) raised $34 million, and Primus Power raised $32 million.

Eighty-six VC investors participated in Battery Storage deals in 2017 compared to 62 in 2016.

In 2017, announced debt and public market financing for Battery Storage companies remained steady at $177 million raised in 12 deals compared to $175 million generated by eight deals in 2016.

Three project funds totaling $446 million were announced in the Battery Storage category in 2017, compared to $820 million raised in 2016 in seven deals.

Nine Battery Storage project funding deals were announced in 2017 totaling nearly $2.1 billion. By comparison, just $33 million was raised in four deals in 2016.

There were six M&A transactions in the Battery Storage category in 2017, of which only two disclosed transaction amounts. In 2016 there were 11 M&A transactions, three of which disclosed transaction amounts.

Smart Grid

VC funding in the Smart Grid sector rose to $422 million in 45 deals in 2017, compared to $389 million raised in 42 deals in 2016. Total corporate funding, including debt and public market financing, came to $1.2 billion compared to $613 million in 2016.

The top VC funded companies in 2017 were ChargePoint, which brought in $82 million and $43 million in two separate deals, Actility which received $75 million, Brilliant which secured $21 million, and Particle and Urjanet each raising $20 million.

Eighty-eight investors funded Smart Grid companies in 2017, compared to 82 in 2016. Top VC investors in 2017 included: ABB Technology Ventures, Braemar Energy Ventures, Chrysalix Venture Capital, Clean Energy Finance Corporation, Energy Impact Partners, EnerTech Capital, GE Ventures, innogy, National Grid, Obvious Ventures, and Siemens.

Smart Charging of plug-in hybrid electric vehicle (PHEV), vehicle-to-grid (V2G) companies, had the largest share of VC funding in 2017 with $155 million in 10 deals, followed by Demand Response companies with $94 million in four deals.

In 2017, five debt and public market financing deals totaling $774 million were announced, compared to $224 million raised in five deals in 2016. There were no IPOs announced for Smart Grid companies in 2017.

There were 27 M&A transactions recorded in the Smart Grid sector (just seven of these deals disclosed transaction amounts) in 2017 totaling $2.5 billion. In 2016 there were 15 transactions (four disclosed) for $2.4 billion. The top disclosed transaction was the $1.1 billion acquisition of Aclara by Hubbell.

Efficiency

VC funding for the Energy Efficiency sector fell to $384 million in 38 deals in 2017 compared to $528 million in 33 deals in 2016. Total corporate funding, including debt and public market financing, was $3.3 billion, compared to $3.8 billion in 2016.

The top VC funded companies were View, which raised $100 million, followed by Kinestral Technologies with $65 million, RENEW Energy Partners with $40 million, Power Survey and Equipment brought in $24 million, and Stack Lighting with $16 million.

Efficient Home/Building companies captured the most funding with $172 million in five deals in 2017. A total of 51 investors participated in funding deals in 2017 compared to 72 investors in 2016. Energy Impact Partners was the most active investor in 2017. 

In 2017, debt and public market financing announced by Energy Efficiency companies fell to $2.9 billion in 16 deals compared to the $3.2 billion raised in 16 deals in 2016. 2017 saw seven Property Accessed Clean Energy (PACE) financing deals bring in more than $1.6 billion compared to 12 deals that brought in $2.3 billion in 2016. 

There were two securitization deals in 2017 for nearly $581 million compared to nine securitization deals for $1.8 billion in 2016. Securitization deals have now exceeded $4.5 billion in 24 deals since 2014. 

M&A activity for the Efficiency sector in 2017 dropped to 10 transactions, three of which disclosed transaction amounts. In 2016, there were 14 M&A transactions with five that disclosed transaction amounts. 

The largest disclosed transaction was the $526 million acquisition of LEDvance by a Chinese consortium consisting of IDG Capital, MLS, and Yiwu. 

To get a copy of the report, visit: http://bit.ly/MercomSGQ42017

About Mercom Capital Group

Mercom Capital Group, llc, is a global communications and research and consulting firm focused on cleantech. Mercom delivers market intelligence and funding and M&A reports covering Battery Storage, Smart Grid and Energy Efficiency, and Solar, and advises companies on new market entry, custom market intelligence and strategic decision-making. Mercom's communications division helps companies and financial institutions build powerful relationships with media, analysts, local communities, and strategic partners. About Mercom: http://www.mercomcapital.com. Mercom's clean energy reports: http://store.mercom.mercomcapital.com/page/.

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Mercom Capital Group, llc, a global clean energy communications and consulting firm, has released its annual report on funding and merger and acquisition (M&A) activity for the solar sector in 2017. 

Total global corporate funding into the solar sector, including venture capital/private equity (VC), debt financing, and public market financing raised came to $12.8 billion, a 41 percent increase compared to the $9.1 billion raised in 2016.  

To learn more about Mercom’s 2017 Solar Funding and M&A Report, visit: http://bit.ly/MercomSolarQ42017

"A strong fourth quarter pushed overall funding higher in 2017. Higher installation levels around the world, the lack of threat to the solar investment tax credit, lower than expected tariff recommendation by U.S. ITC, strong debt financing activity, and over a billion dollars in securitization deals helped the solar industry have a much better year in terms of financial activity compared to 2016. After several challenging years, most of the solar securities were up in 2017 reflecting overall positive sentiments around the solar industry even as several Chinese manufacturers decided to go private. Of course, all this could change swiftly if President Trump decides to impose higher tariffs in the trade case," commented Raj Prabhu, CEO and Co-Founder of Mercom Capital Group. 

Global VC investments came to $1.6 billion in 99 deals in 2017, up 30 percent from the $1.3 billion raised by 78 deals in 2016 - led by several large private equity deals in India.  

Solar downstream companies accounted for 85 percent of total VC funding in 2017, bringing in $1.4 billion of the total $1.6 billion raised. Thin-film companies brought in $106 million while service providers raised $47 million. 

Investments in PV technology companies came to $40 million and Balance of Systems (BoS) companies raised $36 million. The concentrated solar power (CSP) category raised $8 million and the concentrator photovoltaics (CPV) category received $6 million. 

The top VC/PE deals reported in 2017 included a deal for $200 million signed by Lightsource Renewable Energy. ReNew Power also had two deals of $200 million each, followed by Greenko Energy Holdings which raised $155 million. Hero Future Energies raised $125 million and CleanMax Solar raised $100 million. Overall, five of the top six solar VC funding deals in 2017 came from India.

There were 162 VC/PE investors that participated in funding rounds in 2017, with eight involved in multiple rounds: Engie, Avista Development, DSM Venturing, InnoEnergy, Innogy, International Finance Corporation (IFC), Shell, and Techstars. 

Public market financing was flat in 2017 to $1.7 billion raised in 33 deals from $1.8 billion raised in 27 deals in 2016. Three IPOs were logged during the year that raised a combined total of $363 million for Canadian Solar Infrastructure Fund, New Energy Solar Fund, and Clenergy. 

Announced debt financing in 2017 surged to $9.5 billion compared to $6 billion in 2016. There were six securitization deals in 2017 totaling $1.3 billion. Securitization deals surpassed the $1 billion for the  year, a first. 

Large-scale project funding announced in 2017 reached a $14 billion raised in 167 deals, compared to $9.4 billion raised in 133 deals during 2016. A total of 161 investors funded about 20.5 GW of large-scale solar projects in 2017 compared to 5.9 GW funded by 153 investors in 2016. 

The top investors in large-scale projects included Clean Energy Finance Corporation (CEFC), which invested in 13 projects, followed by Santander with eight deals, and Commonwealth Bank of Australia and Siemens Financial Services with six deals each. 

$2.4 billion was raised by 16 residential and commercial solar project funds in 2017 which was down 50 percent compared to $4.9 billion raised by 30 funds in 2016. The top fundraisers were: Sunlight Financial, Sunnova, Solar Mosaic, SolarCity, and Spruce Finance. Since 2009, solar residential and commercial firms offering leases, PPAs, and loans have raised more than $24.8 billion in lease and loan funds. 

There were 71 corporate M&A transactions in the solar sector in 2017, up slightly from 68 transactions recorded in 2016. Solar downstream companies were involved in 51 of these transactions. Engie acquired three companies while BayWa, Brookfield Asset Management, Horizon Solar Power, Siva Power, Solar Spectrum, and Sonnedix acquired two companies each. The largest and the most notable transaction in 2017 was the $1.6 billion acquisition of FTP Power (sPower) by AES and Alberta Investment Management (AIMCo) from Fir Tree Partners.

Project acquisitions jumped up 67 percent as a record 228 large-scale solar projects with a combined capacity of more than 20.4 GW were acquired in 2017, compared to 2016 when 12.2 GW changed hands in 218 transactions. 

Mercom also tracked 187 large-scale project announcements across the globe that totaled 10.6 GW in Q4 2017 and 922 large-scale project announcements totaling 50.1 GW for all of 2017.

To learn more about Mercom’s 2017 Solar Funding and M&A Report, visit: http://bit.ly/MercomSolarQ42017

 

About Mercom Capital Group

Mercom Capital Group, llc, is a global communications and consulting firm focused exclusively on clean energy and financial communications. Mercom’s consulting division advises cleantech companies on new market entry, custom market intelligence, and overall strategic decision making. Mercom’s consulting division also delivers highly respected industry market intelligence reports covering Solar Energy and Smart Grid. Our reports provide timely industry happenings and ahead-of-the-curve analysis specifically for C-level decision making. Mercom’s communications division helps clean energy companies and financial institutions build powerful relationships with media, analysts, government decision makers, local communities, and strategic partners. For more information about Mercom Capital Group, visit: http://www.mercomcapital.com. To get a copy of Mercom’s popular market intelligence reports, visit: http://eepurl.com/cCZ6nT.

The prices attained in recent auctions are influenced by several factors

The importance of quality infrastructure across the solar value chain

Various Instruments For India’s Clean Energy Support Measures 

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Credits: IRENA REMap India Paper 2017

Mercom Capital Group, llc, a global clean energy communications and consulting firm, has released its latest quarterly report on funding and merger and acquisition (M&A) activity for the Battery Storage, Smart Grid, and Energy Efficiency sectors during the third quarter and first nine months of 2017. 

To get a copy of the report, visit: http://bit.ly/MercomSGQ32017

Mercom found that, in the first nine months (9M) of 2017, $1.23 billion was raised by Battery Storage, Smart Grid, and Efficiency companies, up from $910 million raised in 9M 2016.

Battery Storage

In Q3 2017, VC funding for Battery Storage companies dropped to $83 million in seven deals compared to $422 million raised in 10 deals during Q2 2017. A year earlier, $30 million was raised in nine deals in Q3 2016. In 9M 2017, $563 million was raised in 25 deals compared to $209 million raised in 29 deals in 9M 2016. 

The top VC funded Battery Storage companies in Q3 2017 were: Advanced Microgrid Solutions, which raised $34 million from Energy Impact Partners, Southern Company, DBL Partners, GE Ventures, AGL Energy, Macquarie Capital, and former California Governor Arnold Schwarzenegger; Romeo Power, which raised $30 million; and Gridtential Energy, which secured $11 million from 1955 Capital, East Penn Manufacturing, Crown Battery Manufacturing, Leoch International, Power-Sonic, The Roda Group, and the company's chairman, Ray Kubis. 

In all, 16 investors participated in Battery Storage funding in Q3 2017 with Energy Storage Downstream companies raising the most. 

The third quarter saw two debt and public market financing deals in Battery Storage totaling $45 million compared to $107 million raised in seven deals in Q2 2017. In 9M 2017, $174 million was raised in 11 deals compared to six deals that brought in $120 million in 9M 2016. 

There was one M&A transaction involving a Battery Storage company in Q3 2017 compared to three M&A transactions in Q2 2017. In the first nine months of 2017, there were five transactions (two disclosed), down from nine transactions (two disclosed) in 9M 2016. Two Storage projects were also acquired in Q3 2017.

Smart Grid

VC funding for Smart Grid companies in Q3 2017 totaled $76 million in 14 deals, compared to $139 million raised in eight deals in Q2 2017. In a year-over-year (YoY) comparison, $11 million was raised in seven deals in Q3 2016. In 9M 2017, $380 million was raised in 36 deals compared to $343 million raised in the same number of deals in 9M 2016. 

Top VC funded Smart Grid companies included: Particle, which secured $20 million from Spark Capital, Qualcomm Ventures, and previous investors; INTEREL, which raised $11.9 million in funding from Jolt Capital; Roost, which received $10.4 million in funding from Aviva Ventures, Desjardins Insurance, and Fosun RZ Capital; Tritium, which secured $8 million from entrepreneur Brian Flannery; and Innowatts, which raised $6 million from Shell Technology Ventures, Iberdrola Ventures - Perseo, and Energy & Environment Investment. 

In all, 28 investors participated in Smart Grid VC funding rounds in Q3 2017, with SG Communications companies raising the most. 

A total of $11 million was raised in one debt financing deal in Q3 2017 compared to the $9 million raised in one deal in Q2 2017. In 9M 2017, $20 million was raised in two deals compared to $217 million raised in four deals in 9M 2016. 

There were six M&A transactions (two disclosed) in Q3 2017. In Q2 2017, there were six transactions (two disclosed). In 9M 2017, there were 19 transactions (five disclosed) compared to 13 transactions (four disclosed) in 9M 2016. 

Efficiency

VC funding raised by Energy Efficiency companies in Q3 2017 came to $47 million in eight deals compared to $29 million raised in six deals in Q2 2017. In a YoY comparison, $61 million was raised in five deals in Q3 2016. In the first nine months of 2017, $289 million was raised by Energy Efficiency companies in 28 deals compared to $358 million raised in the same number of deals in 9M 2016. 

The Top VC deals in the efficiency category included: Power Survey and Equipment, which received $24 million in funding from EnerTech Capital, Investissement Quebec, Cycle Capital Management, Fonds de solidarite FTQ, and BDC Capital; Corvi, which received a $10 million strategic investment from Hero Enterprise; and Deco Lighting, which secured $8 million in funding from Siena Funding. 

In all, nine investors participated in VC funding in Q3 2017. Within the sector, Efficiency Components companies brought in the most funding. 

Announced debt and public market financing for Energy Efficiency technologies plunged to $615 million in four deals in Q3 2017 compared to the $1.4 billion raised in six deals in Q2 2017. In 9M 2017, $2.3 billion was raised in 13 deals compared to the same amount raised in 11 deals in 9M 2016. 

There was one Property Accessed Clean Energy (PACE) financing deal in Q3 2017 for $205 million versus three deals in Q2 2017 that raised $668 million. In 9M 2017, $873 million was raised in four deals compared to the $1.3 billion raised in six deals in 9M 2016. 

There were two M&A transactions (one disclosed) involving Energy Efficiency companies in Q3 2017, up from just one undisclosed transaction in Q2 2017. For the first nine months of 2017, there were seven transactions (three disclosed), down from 12 transactions in 9M 2016 (four disclosed).

To get a copy of the report, visit: http://bit.ly/MercomSGQ32017

 

About Mercom Capital Group

Mercom Capital Group, llc, is a global communications and research and consulting firm focused on cleantech. Mercom delivers market intelligence and funding and M&A reports covering Battery Storage, Smart Grid, and Energy Efficiency and Solar and advises companies on new market entry, custom market intelligence and strategic decision-making. Mercom's communications division helps companies and financial institutions build powerful relationships with media, analysts, local communities, and strategic partners. About Mercom: http://www.mercomcapital.com. Mercom's clean energy reports: http://store.mercom.mercomcapital.com/page/.

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VALUE CREATION IN THE PHOTOVOLTAIC SECTOR

Auctions in the power sector

Large-scale project funding crosses $10 billion in 9M 2017

Mercom Capital Group, llc, a global clean energy communications and consulting firm, released a new report on funding and merger and acquisition (M&A) activity for the solar sector in the third quarter of 2017 and the first nine months of 2017.

To learn more about the report, visit: http://bit.ly/MercomSolarQ32017 

Total corporate funding (including venture capital funding, public market and debt financing) in the first nine months (9M) of 2017 was slightly lower compared to the same period in 2016, with about $7.1 billion raised compared to the $7.5 billion raised in 9M 2016. There were 143 deals in 9M of 2017 compared to 125 deals in the same period of 2016.

Looking at just Q3 2017 data, Mercom found that corporate funding in the solar sector grew 74 percent compared to Q2 2017, with $2.4 billion raised in 45 deals. In Q2 2017, $1.4 billion was raised in 37 deals. Year-over-year (YoY), funding in Q3 2017 was about 19 percent lower compared to the $3 billion raised in Q3 2016. 

“Debt financing activity outside of the United States helped bump up corporate funding in the third quarter as financing activity in the United States was muted ahead of the Suniva anti-dumping case decision,” commented Raj Prabhu, CEO of Mercom Capital Group. 

Global VC funding (venture capital, private equity, and corporate venture capital) for the solar sector in 9M 2017 rose a slight seven percent to $985 million from $925 million raised during the same period in 2016, largely due to a strong first quarter in 2017.

In Q3 2017, VC funding for the solar sector doubled with $269 million raised in 23 deals compared to $128 million raised in the same number of deals during Q2 2017. Most of the VC funding raised in Q3 2017 (72 percent) went to solar downstream companies with $193 million in 13 deals. 

The Top VC deal in the third quarter of 2017 was the $100 million raised by Indian rooftop installer CleanMax Solar. It was followed by the $56 million raised by Singapore’s Sunseap Group, the $21 million secured by Sol Voltaics, and Ampt’s $15 million. Ubiquitous Energy also raised $15 million. A total of 35 investors participated in solar funding in the third quarter of 2017. 

Solar public market funding was approximately 12 percent lower compared to the first nine months of 2016, with $1 billion raised in 9M 2017 compared to $1.2 billion raised during the same period of 2016. Public market financing fell significantly in Q3 2017 with just $79 million in four deals, down from $473 million raised in six deals in Q2 2017. 

During the first nine months of 2017, debt financing activity accounted for $5.1 billion in 51 deals, which was almost six percent lower compared to the first nine months of 2016, when $5.4 billion was raised in 55 deals. In Q3 2017, announced debt financing rose steeply to $2.1 billion in 18 deals compared to the $798 million raised in eight deals during the second quarter of 2017. 

In the top debt deals, Greenko Energy Holdings raised $1 billion in green bonds in two separate deals, $650 million and $350 million. Cypress Creek Renewables also received $450 million from Temasek. 

Announced large-scale project funding in 9M 2017 crossed the $10 billion mark, with $10.2 billion raised for the development of 117 projects. For the third quarter of 2017 alone, announced large-scale project funding came in at more than $2.8 billion in 36 deals.

Announced residential and commercial solar funds totaled $2.2 billion in 9M 2017, which was lower by almost 35 percent when compared to the $3.4 billion raised during the same period of 2016. 

The first nine months of 2017 saw a total of 58 solar M&A transactions, compared to the 48 transactions seen in the same period (9M) of 2016. There were 18 solar M&A transactions in Q3 2017, up from 11 solar M&A transactions seen in the preceding quarter (Q2 2017) and equal to the number of transactions (18) posted in Q3 2016. Of the 18 total transactions in Q3 2017, 13 involved solar downstream companies, three involved PV manufacturers, and there was one transaction each by a BOS company and an Equipment provider. 

There were 161 large-scale project acquisitions in first nine months of 2017 aggregating over 14.6 GW, compared to 145 project acquisitions totaling just 7.1 GW during the same period of 2016.

Similar to Q2 2017, investment firms and funds were the most active acquirers in Q3 2017, with 26 projects for over 2 GW, followed by project developers with 16 transactions totaling over 1.1 GW. 

Mercom tracked 296 new large-scale project announcements worldwide in Q3 2017 totaling 15.7 GW. 

To learn more about the report, visit: http://bit.ly/MercomSolarQ32017

 

About Mercom Capital Group

Mercom Capital Group, llc, is a global communications and consulting firm focused exclusively on clean energy and financial communications. Mercom’s consulting division advises cleantech companies on new market entry, custom market intelligence and overall strategic decision making. Mercom’s consulting division also delivers highly respected industry market intelligence reports covering Solar Energy and Battery Storage, Smart Grid, & Efficiency. Our reports provide timely industry happenings and ahead-of-the-curve analysis specifically for C-level decision making. Mercom’s communications division helps clean energy companies and financial institutions build powerful relationships with media, analysts, government decision makers, local communities and strategic partners. For more information about Mercom Capital Group, visit: http://www.mercomcapital.com. To get a copy of Mercom’s popular market intelligence reports, visit: http://eepurl.com/cCZ6nT.

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