As Panchabuta has earlier discussed, most of the fund-raising in Renewable Energy and Cleantech in India is happening either in early stage companies or in mega project developments.
The biggest investments are in the renewable energy project development companies and projects itself.
There again, there are two different trends that are emerging. One is the funding of green power developers like Orient Green Power Limited, AuroMira Energy etc.
There are also domain specific IPP’s emerging like Azure Power in Solar, Wind farm IPP developers like Caparo Energy and a number of Small Hydro focused developers.
Panchabuta has talked about this in detail and people like Mr. Raja Parthasarathy, Managing Director ,IDFC PE, have also mentioned that cleantech in India will primarily be investing in clean energy and a few other opportunities.
There have been clear trends emerging in this space and some of the highlights in the last couple of months include the recent funding of Kiran Energy- Solar PV focused developer– that is said to have received a funding of about $30 million from three prominent private equity players New Silk Route, Bessemer Ventures and Argonaut Ventures for a majority stake.
Last month, Baltimore, US-based SunEdison announced its intention to invest $100 million in solar projects in India and the company’s President, Mr Carlos Domenech, had said that many private equity investors are interested in partnering SunEdison and a deal could be struck in about three months.
Biomass startup developer, AllGreen Energy announced the raising of Series A from Reliance Venture Asset Management and General Electric affiliate for its 6.4 MW biomass project–which involves utilising agricultural waste to generate power–in Tamil Nadu’s Perundurai and the company intends to establish more such projects in the country in the next 10 years totalling nearly 100 MW of installed capacity.
Soham Renewable Energy, a small hydro focused developer was in talks earlier this month with Macquarie SBI Infrastructure fund to raise upto $60 million.
In going with this trend, Mr. Kameswara Rao, Leader- Energy and Utilities, PwC India said that resource consolidation and reallocation is taking place in the renewable energy space in India with deals involving wind, hydro and biomass. He further added, “We are at a critical point now and the course of renewable regulations, especially with regard to mandatory procurement obligations and activation of the REC market will significantly determine market activity.”
Panchabuta understands that generating assets with a good cash flows and strong teams are commanding extremely good valuations. Private equity backed developer companies and some private equity funds themselves are interested in aggregating such assets as a part of their growth plan.
Such developers are looking to aggregate these assets either to expand brown field or enter a new vertical in the renewable energy space.