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India: Solar Energy Adani has the Largest Solar Project Pipeline in India, Tata Power Leads with Installed Capacity

| Editor: Dominik Stephan

According to Mercom Capital Group’s latest report, India Solar Quarterly Market Update, large scale project development in India is largely fragmented but we are starting to see a shift towards the sector dominated by large corporations and private equity-backed players.

(Source: Public Domain / CC0 )

Bengaluru/India – The 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. The Group, with approximately 11 per cent market share, has the most projects under development in India followed by ReNew Power, a wind and solar company backed by Goldman Sachs with ~10 per cent market share. Soon to be acquired SunEdison has ~8.5 per cent, ACME has ~8 per cent, Azure has ~5 per cent, Tata Power has 3.8 per cent and both Suzlon and Hero Future Energies have 3.7 per cent of the large-scale solar market.

The top 20 developers account for almost 80 per cent 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 international 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.

With the acquisition of Welspun’s project portfolio, Tata Power currently has the largest solar installed capacity in India with approximately 9 per cent. Tata Power is followed by ACME with 7 per cent and SunEdison with approximately 5.5 per cent (acquisition of SunEdison pending) and Adani with 5 per cent. The top 20 developers only account for approximately 58 per cent of the 8.1 GW installed capacity and over 500 plus other companies account for the rest.

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