Large-scale solar project development in India is fragmented and dominated by big corporations as well as private equity-backed players, Mercom Capital Group said today. Adani Group, an infrastructure and power conglomerate, which entered the solar sector just over two years ago now has the largest overall solar project pipeline in India with almost 2 GW, it said. With approximately 11 percent market share, it has the most projects under development in India followed by ReNew Power, a wind and solar company backed by Goldman Sachs with 10 percent market share.
“Soon to be acquired SunEdison has 8.5 percent, ACME has 8 percent, Azure has five percent, Tata Power has 3.8 percent, Suzlon and Hero Future Energies have 3.7 percent of the large-scale solar market each,” it said. The top 20 developers account for almost 80 percent of projects under development. In a tough market driven by hyper-competitive reverse auctions and low margins, large conglomerates with deep pockets and strong balance sheets that can access financing at much lower rates, private equity-backed firms and global companies with access to cheaper funding abroad are well-positioned to dominate the sector. Other than one-off projects, smaller developers will struggle to grow as financing, low bids, and the policy push towards larger projects will make growth challenging.