India Solar Power for International Investors

Detailed Guide on Solar Developer Business Opportunities for International Investors

Solar Power Plant Investment Opportunity

• The solar sector has been witnessing significant foreign investor funding in the last couple of years, with many firms already having a large solar portfolio of projects in the country
• Solar is a $100 billion (6 lakh crore) business revolution in India. The explosive growth of the solar sector in India has seen many large and small businesses consider entering the solar space.
• Key decision makers in large corporates, millions of small businesses and enterprising individuals are exploring the best ways to enter the solar energy sector

 

 

About the Report

What are the key aspects covered in this report?

This report provides unique insights and critical data points on the following topics.

• Potential returns associated with different business opportunities
• Risks faced by businesses entering solar sector as well as risk mitigation strategies for international investors
• Policy attractiveness for International investors
• Investment climate for solar investments in different states
• Recent solar investments in the Indian market and their success/failure stories

Why should you buy this report from Solar Mango?

Solar Mango’s Expertise in the Solar Sector

• Solar Mango is one of the most respected brands in the Indian solar sector
• Considered the #1 solar guide, our expertise in the technical, market and commercial aspects of solar energy has benefitted over 1500 stakeholders – ranging from industries, commercial establishments, small businesses, entrepreneurs, government, educational institutes and more
• Through our focused consulting assignments and research reports, and our team of industry specialists, we bring in in-depth expertise in many critical aspects of solar power plant, especially solar PV

Solar Mango’s Contacts in the Indian Solar Sector

• Being a pioneer in solar power industry research and consulting (we have been serving the Indian solar power market since 2009 when the solar power growth was just beginning)
• We also own some of the leading online resources for solar energy in India, Solar Mango has one of the most extensive contact networks with solar industry specialists and experts in the field.

Snapshot of Solar in India

State-wise Growth

 

Source: MNRE

State-wise Market Share (%)

Source: MNRE

Solar Trends Across Business Models

Source: Solar Mango Analysis

Mergers and Acquisitions

A recent post by Bridge to India suggests that the merger and acquisition (M&A) activity in the solar sector is significantly large with about 3,000 MW of projects on sale (as of June 2016).

Take a look at some developments in the secondary market which took place in the year 2016.

Acquisition/Merger Activity	Parameters	Details
Tata Power’s Acquisition of Welspun’s Renewables	Transaction Value	$1.38 billion
	Acquired solar capacity	900 MW
	Per MW Deal Valuation by Experts	Rs 7-8 Crore/MW
	Actual Cost of setting up a plant	Rs 5-6 Crore/MW
Greenko’s purchase of SunEdison’s Utility Solar Assets	Acquired Capacity	390 MW solar, 48 MW wind
	Deal Valuation	$392 million (project-level debt – $350 million, equity investment – $42 million)
	Marquee Projects	500 MW project in Kurnool, Andhra Pradesh
Amplus’s purchase of SunEdison’s rooftop solar assets	Acquired Capacity	7 MW
	Newly acquired clients	Whirlpool, Intel, Standard Chartered and Delhi Metro
	State-wise spread of assets	Maharashtra, Karnataka, Tamil Nadu and Delhi
CLP – Suzlon joint venture for developing 100 MW solar park in Telangana	Joint Venture Stake	CLP – 49%, Suzlon – 51%
	Investment	760 crore
	Project Details	PPA Rate – Rs 5.59/unit PPA Period – 25 years Discom – Telangana Southern Power Distribution Company

 

Key Topics Covered

Solar Power Scenario in India

• Solar power plant potential in India
• Overview of business models
  • Rooftop
    • CAPEX
    • OPEX
  • Ground-mounted
    • Sale-to-utility
    • Captive
    • Third-party
  • Solar power growth trends
    • Solar Power Installed Capacity
      • Region-wise
      • Sector-wise – rooftop and ground-mounted
      • Categorization based on business models
    • Solar tariff trends
      • Region-wise
      • Sector-wise – ground-mounted and rooftop
      • Based on business models
    • Solar Mango forecast for solar capacity additions
  • Lever’s impacting solar power plant growth in India

Business Opportunities for Solar Developers

• Overview of solar PV value chain opportunities
• Analysis of the solar power plant opportunities

The opportunities discussed include

• Solar power plant development
• Secondary market for solar farms
• O&M
• Other opportunities
  • Asset Management
  • IT solutions
  • Support services – project liasoning, Owner’s Engineer etc.
  • Mergers and Acquisitions

The various solar power generation opportunities are evaluated based on the following set of parameters

• Competitive landscape
• Investment required
• Business models
• Payback period
• Margin potential
• Indicative returns/margins

• Overview of solar PV manufacturing opportunities
  • This section gives you a brief analysis of manufacturing opportunities in the solar PV value chain based the following parameters
    • Competition
    • Investment required
    • Policy Drivers
    • Risks and Returns

Scenario Analysis of Solar Power Plant Opportunities

This section performs a returns analysis of various business opportunities.

Analysis of potential returns

• Sector-wise – rooftop and ground-mounted
• Business models

The input and output parameters for the analysis is listed below

• Input parameters
  • Plant capacity
  • Interest rates
  • CUF
  • Tariffs
• Output parameters
  • Payback period
  • Equity IRR
  • Project IRR

Financing and Funding Activity

• Top international investors in the solar sector
• VC, Debt Funding Deals
  • Rooftop
  • Ground-mounted
• Mergers and Acquisitions

Risks and Mitigation Strategies

The major risks along with suitable inputs for mitigating these risks will be provided in this chapter for all the different business opportunities.

• Project Completion Risks
  • This refers to the various time delays and cost overruns which directly or indirectly affect the course of the entire project
• Country Risks
  • This covers the economic and political risks including government stability, ease of doing business and financial risks like currency risks, interest rates, and insurance risks
• Operational Risks
  • This covers the risks associated policy uncertainties, supply constraints, and technology improvements
• Market Risks
  • This covers the risks associated with competition from overseas players, price pressures, and marketing

 

Project Allocations, Announcements and Government Policies

• Solar project bids and allocations
• Solar auction announcements
• Central and State Policies
• State-wise attractiveness of foreign ventures
  • Evaluation based on the ease of doing business, solar policy favorability, infrastructural support and other parameters

Case Studies

• Leading international investors and corporate-backed investments in India along with their success and failure stories
• Some prominent solar investments pouring into India that will be covered in the report include
  • SunEdison Inc
  • SoftBank Corp
  • Fortum Corp
  • CLP Holdings
  • APG Asset Management
  • Morgan Stanley
  • I-Square Capital
  • First Solar
  • Moser Baer

About Solar Mango

Solar Mango is a division of Energy Alternatives India (EAI), India’s largest renewable energy and clean technology research and consulting firm.

The range of services Solar Mango provides include

Assistance for International firms

Solar Mango provides specialized assistance to International solar firms who wish to enter the Indian market. While we provide such assistance to the entire renewable energy spectrum, we have a special focus on the Solar PV sector within this portfolio. Our services cover:

• Understanding of the Indian Market & Regulatory Structure
• Market Potential Studies
• Competitor Analysis
• Developing and Implementing Marketing & Sales Strategies
• Identifying Joint Venture/Marketing Partners
• Business Incorporation, Setting Up Office, Recruitment of Key Personnel

International Clients whom we have assisted –

• Solar Mango assisted the World Bank in getting a thorough understanding of solar and other renewable energy investments in India.
• Solar Mango provided turnkey market entry and market development assistance for a major German firm in the solar plant monitoring space to enter, recruit, conduct road shows, and acquire prominent customers for the Indian market.

Other Clients –