Market Intelligence Report

SOLAR
June 29, 2020

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Democratic Lawmakers Include Solar, Storage in $1.5 trillion Moving Forward Act in
Industry News
US Infrastructure Bill
Democratic lawmakers in the U.S. House of Representatives introduced several pieces of legislation that could buoy renewables as part of a larger
infrastructure package. The Moving Forward Act, the text of which was released, includes extensions of both the production tax credit and the investment tax
credit (ITC) to 2025 as part of a behemoth $1.5 trillion infrastructure bill. The lawmakers also inserted into the infrastructure package the Growing Renewable
Energy and Efficiency Now (GREEN) Act, which was unveiled in November as draft legislation.
If adopted, the legislation would extend the ITC for solar and offshore wind by five years, and allow energy storage to use that credit. It maintains the 60%
production tax credit through 2025, and allows for direct pay instead of relying on tax equity investors. The Moving Forward Act would also require the Federal
Energy Regulatory Commission to work on a regional transmission rulemaking that could ease the transport of renewable energy.
With policymakers battling over COVID-19 related priorities, renewables provisions face long odds due to Republican pushback, particularly in the Senate. But
the legislation does indicate clean energy groups are gaining traction on Capitol Hill. Even before the coronavirus pandemic upended some renewables
projects, wind and solar advocates were lobbying feverishly for the extension of tax credits (wind won a one-year extension in 2019).
Renewed calls for extended tax credits have become even more urgent in the face of the coronavirus. Though large-scale wind and solar projects have
generally been able to hew closely to schedules, the distributed solar industry has reported layoffs, drops in demand and declining sales. SEIA has reported
72,000 solar job losses (including layoffs and jobs that would have been created). After the coronavirus arrived in the U.S., clean energy organizations also
sought tweaks that make those incentives easier to use, such as direct pay. In May, the U.S. Treasury Department released guidance that allowed wind and
other resources more time to meet tax credit deadlines.
Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association, stated “We are grateful to House leaders for introducing the Moving
Forward Act, which includes several pro-solar provisions. We look forward to working with bipartisan leaders in the House and Senate on policies that help put
American solar workers in a position to lead economic recovery from the COVID-19 economic crisis. We know that with the right policies in place, including
many of those proposed in the Moving Forward Act, clean energy can add hundreds of billions of dollars in investment and perhaps a million or more jobs back
into the economy. Close to 90% of Americans support policies to promote a clean energy future. We will continue to work with Congress to push for policies
that help restore lost solar jobs and resume our industry’s progress in the Solar+ Decade.”
For the storage industry, ITC eligibility, as proposed in the Moving Forward Act, could help offset reductions and delays in market deployments in both the near-
and medium-term due to COVID-19, Kelly Speakes-Backman, CEO of the U.S. Energy Storage Association said. Energy storage companies have been
dealing with widespread project delays and reduced revenues.
“The entire renewable sector continues to be in need of commonsense emergency relief to mitigate ongoing pandemic-related impacts in forthcoming COVID
legislation,” Gregory Wetstone, president and CEO of the American Council on Renewable Energy said.
Overall, the bill proposes investing more than $70 billion to transform the U.S. electric grid to accommodate more renewable energy, expand renewable energy
deployment, strengthen infrastructure and help develop an electric vehicle charging network. It creates a grant program aimed at expanding renewable energy
access to low-income home owners, multi-family affordable housing complexes and underserviced solar areas, which it defines as areas with low or no PV
deployment. It also includes grants for energy efficiency and renewable energy improvements that help public schools reduce their energy costs.
The House of Representatives plans to vote on the Moving Forward Act before July 4. Infrastructure spending is widely seen as capable of buffering the
economic impact of the COVID-19 pandemic, which has caused record job losses in the U.S.
In addition to $300 billion to build and fix roads and bridges, the bill also invests in programs to reduce carbon pollution. Rep. Peter DeFazio (D-Ore.),
chairman of the House Transportation and Infrastructure Committee, has commented that the “Moving Forward Act” applies the principles of the Green New
Deal. Many solar and storage provisions are included in the bill, including:
• 5-year extension of Sec. 48 and 25D of the Investment Tax Credit (ITC) at 30% • Grid modernization provisions
through 2025, followed by a two-year phase-down (2026 at 26% and 2027 at • Funds for transmission planning with a requirement to account for
22%) renewable energy generation
• Direct pay proposal at 85% for section 48 qualifying projects for the same • Grant program for solar installation in low-income and underserved
amount of time as the PTC/ITC credits exist communities
• Storage ITC • Funds for renewable energy installation in community institutions, such as
• Proposals to incentivize investment in clean energy for low income and schools
underserved communities • Improvements to public lands renewable energy development programs
• Tax credits for clean energy manufacturing Source: GTM, SEIA, PV Magazine, Solar Power World, Jun 2020

Industry News Construction Labor Costs Stabilize as Projects Halted Due to COVID-19 Resume Work https://bit.ly/mercomcve

Engineering and Construction costs fell

in June, according to IHS Markit and the
Procurement Executives Group (PEG).
The current headline IHS Markit PEG
Engineering and Construction Cost
Index registered 49 in June, falling just
short of the neutral mark 50; a neutral
index reading indicates responders see
no change in pricing. The materials and
equipment portion of the index came in
at 47.2, still indicating falling prices,
while the sub-contractor portion came in
Source: IHS Markit at 53.2, signaling rising costs.

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 Market Intelligence Report
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June 29, 2020

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Continued Construction Labor Costs Stabilize as Projects Halted Due to COVID-19 Resume Work https://bit.ly/mercomcve

The six-month headline expectations for future construction costs rose in June with an index figure of 52.8, recovering from an all-time low last month. Both
the materials/equipment and labor subcomponents recorded expectations of future price increases. The six-month materials and equipment expectations index
came in at 53.5 this month, up from 39.9 last month, with responders expecting increasing prices for seven out of 12 categories.
Expectations for sub-contractor labor registered 51.2 in June. While the U.S. West is expected to see higher labor costs in six months, labor costs are
expected to stay flat in the other regions of the U.S. and both regions of Canada. In the survey comments, respondents continued to note lower demand
conditions due to the novel coronavirus (COVID-19). Source: IHS Markit, Jun 2020

Industry News China Boosts Subsidy-Eligible Solar Projects by 13% in 2020 https://bit.ly/mercomchbq

China, the world’s biggest solar market, plans to subsidize 434 solar PV projects with a combined capacity of almost 26 GW of this year. Shares of solar
equipment manufacturers gained as the announcement from the National Energy Administration (NEA) boosted subsidy-eligible solar projects over the 23 GW
approved last year.
The increase comes even as China has been pushing subsidy-free solar projects to allow such clean energy to directly compete with coal power. The projects,
located in 15 regions, include 25.6 GW of utility-scale ground-mounted projects, with the rest for smaller projects at industrial and commercial sites, the NEA
said in a statement dated June 23.
The scale is within expectations after the nation announced earlier this year it will allocate ¥1 billion (~$141 million) of financial support for large solar projects,
according to Jonathan Luan, a Beijing-based analyst at BloombergNEF. He expects China to add about 37 GW of solar power in 2020, including some zero-
subsidy projects and plants that were approved but not commissioned last year.
Projects that fail to meet a proposed deadline for grid connection by the end of the year will have their power prices cut by ¥0.01 (~$0.0014)/kWh for every
quarter that they are overdue, the NEA said. Subsidies will be canceled for projects that are not completed and connected to the grid two quarters after the
proposed deadline. LONGi Green Energy soared as much as 8% in Shanghai, while Tongwei rose 5.7% and Trina Solar gained 7%. China’s factories
dominate the entire solar manufacturing chain, and have been announcing aggressive expansion plans this year. Source: BloombergQuint, Jun 29

M&A News KKR Acquires Stake in Independent Power Producer First Gen Through Voluntary Tender Offer https://bit.ly/mercomkraq

Global investment firm KKR announced that, following the completion of the voluntary tender offer period by Valorous Asia Holdings, an entity owned by KKR
investment funds, has accepted all of the 427,041,291 common shares of First Gen, an independent power producer that were tendered by shareholders at
the close of the tender offer, representing approximately 11.9% of First Gen’s outstanding common shares.
The Offeror intends to acquire all of these tendered common shares at a price of ₱22.50 (~$0.45) per common share on July 1, 2020, the cross date
previously set out in the Offeror’s tender documents, representing a total investment value of ₱9.6 billion (~$192.2 million). KKR makes its investment from its
Asia Pacific infrastructure strategy.
According to Mercom's Q1 2020 Solar Funding and M&A report, there were 12 solar M&A transactions in Q1 2020 compared 18 solar M&A transactions in Q1
2019. Source: KKR, Mercom Capital Group, Jun 28

Industry News Global Solar Capacity to Grow by 125% Over Next Decade: Fitch Solutions https://bit.ly/mercomgscs

Global solar power capacity will expand by 125% over the next decade with China, the U.S., and India expected to bring online nearly two-thirds of the net
solar growth likely to be added by the end of 2029, according to a study by Fitch Solutions. Solar will account for around 6% of total global electricity
generation by 2029, up from an estimated 2.7% share at the end of 2019, said the analysts in an outlook for global solar power.
Fitch forecasts that a net total of 734 GW of solar power will be added worldwide by the end of 2029, with installed solar capacity increasing from 587.5 GW in
2019 to 1.32TW over ten years. China is expected to remain the single largest market for solar growth, as the country is set to add more than 285.7 GW of
solar capacity over the ten year forecast period, accounting for just under 40% of total global growth.
The U.S. and India will also see significant solar generation growth over the next decade with 110.4 GW and 84.4 GW of capacity additions respectively, said
Fitch. In Europe, Spain, France, Germany and Italy will be the region’s strongest solar performers - with each market estimated to add between 12 GW and 24
GW of new capacity over the next decade. Fitch said solar growth in emerging markets will also support its positive global outlook.
Outside of Latin America, Fitch highlight Malaysia and Turkey as two additional emerging markets where it expects to see strong growth in solar capacity over
the coming decade. Source: Recharge, Jun 26

Funding News Solarcentury Secures $22 Million from Rabobank to Build Two Solar Projects in the Netherlands https://bit.ly/mercomsvtn

Solarcentury, a solar project developer, secured €20 million (~$22.4million) senior debt facilities from Dutch banking firm Rabobank to support the
development of two utility-scale solar projects in the Netherlands. Both projects are located near Apeldoorn in central Netherlands, Apeldoorn Ijsseldijk and
Apeldoorn Beemte-Broekland, which have a combined capacity of 33.8 MW.
Apeldoorn IJsseldijk solar project covers 4.5-hectares and is 4 MW in size. It will generate 4 GWh of per year. Apeldoorn Beemte-Broekland solarproject is 28
hectares in size and 29.8 MW. Construction on the projects is due to start imminently and complete before the end of the year.
According to Mercom Q1 2020 Solar Funding and M&A Report, in January 2020, Solarcentury secured a new €54.8 million (~$60.87million) banking facility
from NatWest and HSBC UK, for the construction of two utility-scale solar projects in Spain with a combined generating capacity of 500 MW. The new banking
facility comprises a €27.7 million (~$30.77 million) Trade Loan from NatWest, and a €27.1 million (~$30.1 million) line from HSBC UK, with both sources of
funding supported by UK Export Finance, the UK’s export credit agency. Source: Solarcentury, Mercom Capital Group, Jun 25

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 Market Intelligence Report
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June 29, 2020

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Industry News German Solar Tender Settles Average Power Price of $0.0591/kWh https://bit.ly/mercomgsxd

German Solar Auctions - Overview German federal network agency the

● 96.3 MW of solar capacity was allocated in the Nineteenth Solar auction in Germany Bundesnetzagentur announced the
● Tariffs increased by 2% vs 18th auction and dropped by 43% since first auction results of a tender held on June 1 for
Capacity (MW)
Tariff (€/kWh)
photovoltaic projects with a generation
510 0.092 0.100 capacity of 750 kW-10 MW.
0.085
0.090
0.080
410 0.074
German Federal Network Agency or
0.072 0.080
0.069
0.066 0.066
Bundesnetzagentur received 101 bids
0.070
310
0.057 0.057
with a total capacity of almost 447.2 MW
0.055
0.052 0.053 0.060 and awarded 21 bids with a capacity of
0.049 0.048 0.049
0.046 0.047
210 0.036 0.050 roughly 96.3 MW.
0.040
110 The final prices agreed for the solar
0.030
power to be generated by the facilities
157 160 204 128 130 163 200 200 220 183 192 178 505 205 153 501 100.6 301 96.3 0.020
10 ranged from €0.046-0.0548 (~$0.051-
1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th 13th 14th 15th 16th 17th 18th 19th 0.010 0.061)/kWh for an average €0.0527
Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction
-90 (Apr 15) (Aug 15) (Oct 15) (May (Aug 16) (Dec 16) (Feb 17) (Jun 17) (Oct 17) (Jun 18) (Oct 18) (Feb 19) (Mar 19) (Jun 19) (Oct 19) (Jan 20) (Feb 20) (Mar 20) (Jun 20) 0.000 (~$0.0591) that was slightly more
16)
expensive than the €0.0518 (~$0.0581)
2015 2016 2017 2018 2019 2020
/kWh settled in the previous tender of
Source: Mercom Capital Group
that type, which assigned 301 MW of
capacity.
The next tender planned for solar projects of that scale will be held on September 1, with a procurement round dedicated to ‘innovative’ PV systems due to be
staged on the same day. Source: German Federal Network Agency, PV Magazine, Jun 2020

Industry News Cumulative Solar Installed Capacity in UK Reached 13 GW as of May 2020, a 1.4% Increase YoY http://bit.ly/mercomukgov

The U.K. added 4.7 MW of new PV systems in May 2020, the country had installed 6.64 MW in
April 2020. Provisionally, as of the end of May 2020 there is a total of 13,436 MW installed UK
UK PV Installations (MW) as of May 2020 solar capacity across 1,036,077 installations. This is an increase of 1.4% (187 MW) since May
Cumulative Installations Installations
2019. During May 2020, there have been 1,089 installations.
Installations May 2020 2020 YTD
This is double the amount seen in April, however, April had seen the lowest number of
13,436 4.7 43
installations on record as the COVID-19 lockdown measures had a significant effect on the
Source: BEIS
number of new installations which were able to be completed.
The volume of installations picked up in May but remains very low, half of the amount that were installed in May 2019 as the lockdown continued to have an
effect. The majority (73%) of these new installations were sub-4kW installations and the total installed capacity for the month has increased by 5 MW. To date,
45% (6,019 MW) of total installed solar PV capacity comes from the 465 large scale installations (greater than 5 MW). Whilst 92.8% of all installations are sub-
4kW, these only amount to 20.2% (2,720 MW) of total installed solar PV capacity in the UK.
At the end of March 2020 (Q1 2020), 57% of capacity (7,695.7 MW) came from ground-mounted or standalone solar installations. This includes the two
operational solar projects to be accredited for Contracts for Differences. Source: UK Department for Business, Energy & Industrial Strategy, Jun 2020

Company News SunEdison Infrastructure Restructures its Rooftop Solar Business in India https://bit.ly/mercomsnen

India based renewable energy company SunEdison Infrastructure has entered into a framework agreement to restructure and transfer under-construction
commercial and industrial (C&I) and other businesses of the company to SunEdison Energy Solutions Private Limited, a newly formed joint venture.
SunEdison Energy Solutions is a joint venture company of Sherisha Infrastructure Private Limited, Fenice Investment, South Lake One, and a company
proposed to be set up in the UK by Pashupathy Capital Private Limited.
Under the proposed restructuring plan, completed projects and under-development projects will be separated, and the ones under development will be
transferred to the joint venture. SunEdison’s engineering, procurement, and construction (EPC) business, and the trademark “SunEdison” will also be
transferred to SunEdison Energy Solutions through a slump sale.
Additionally, under the terms of the agreement, South Lake One will invest $10 million in SILRES, a subsidiary of SunEdison Infrastructure Limited, to fund
urgent working capital requirements. Source: Mercom India, Jun 29

Project News AC Energy Plans 720 MW Solar Project in Australia https://bit.ly/mercomcvhp

A JOINT venture of Ayala-led AC Energy, in Australia is set to build a 720 MW renewable facility after securing a connection deal with the New South Wales’
(NSW) transmission network TransGrid. AC Energy said the solar project by UPC\AC Renewables Australia will connect to TransGrid’s 330 kV transmission
line from Tamworth to Armidale in NSW. It is seen to bring clean electricity to around 250,000 households each year.
The joint venture will also be installing a large-scale lithium-ion battery storage facility that will assist in maintaining the grid’s stability and will provide firm
capability to deliver energy at peak periods, lowering prices for consumers. Construction works will run for three years, the company said. The solar farm will
be going online in stages.
The joint venture holds a 25% stake in UAC Energy Holdings, a company which recently lodged a A$777 million (~$533.98 million) takeover offer to acquire
Infigen Energy. AC Energy owns the bulk of the interest, or the remaining 75%, in UAC Energy. Source: BusinessWorld, Jun 26

Project News Canadian Solar Signed Two Corporate PPAs for 274 MW Solar Projects in Brazil https://bit.ly/mercomcntf

Canadian Solar, a manufacturer of solar PV modules and provider of solar energy solutions, signed two private power purchase agreements (PPA) with
Braskem and COPEL Energia for a total of 274 MW in solar power projects in Brazil.
For this PPA, Canadian Solar will develop and build a 152 MW project in the State of Minas Gerais, in the same region as other projects already developed
and built by the Company. Construction will start in 2021 and expected to reach commercial operation before the end of 2022. Source: Canadian Solar, Jun 23

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Industry News Vivint Solar Closes $300 Million of New Tax Equity Commitments https://bit.ly/mercomvnsn

Vivint Solar, a residential solar provider, announced it has secured $300 million in new tax equity financing commitments from two repeat investors to support
the growth of Vivint Solar's residential solar business. With the addition of these two tax equity commitments, Vivint Solar has committed financing capacity for
approximately 185 MWs. The investment is expected to allow Vivint Solar to design and build low-cost, clean energy systems for approximately 24,000 new
residential customers.
According to Mercom Research, earlier in June 2020, Vivint Solar secured $545 million in debt commitments in two separate deals. The first deal represents a
$245 million increase to an existing multi-lender revolving warehouse facility from 2019. It will lift the facility’s margin to 3.1% without changing the maturity
date or other material terms of the debt.
The second one is for a $300 million hold-co loan facility provided by the Brookfield Infrastructure Debt Fund. The latter allows additional borrowings on future
contracted cash flows of $100 million and will have an interest rate of 8%. It is due in three years. BofA Securities was the sole structurer and arranger for the
hold-co loan. Source: Vivint Solar, Mercom Capital Group, Jun 29

Industry News AES Corporation Launches RFP for 1 GW Carbon Free Energy https://bit.ly/mercomaecl

American electricity distributor AES Corporation is soliciting bids for up to 1 GW carbon-free energy, environmental attributes, ancillary services, and capacity
from newly constructed renewable energy projects. It has now launched a request for proposals (RFP) round. Power generated from these projects will be
supplied by the utility to its customers. It says the RFP is inclusive of its strategic alliance with Google.
The RFP seeks proposals from newly constructed renewable energy projects with commercial operation scheduled to start between January 01, 2020 and
December 31, 2023. Eligible projects can have new solar power, new DC coupled solar and storage, new/repowered wind and other new carbon free energy
sources. Eligible projects will enter into power purchase agreement (PPA) with AES Solutions Management.
An expression of interest (EOI) will be submitted first for eligible projects by June 26, 2020 to be followed by RFP submission by July 22, 2020. With Google,
AES has a strategic alliance since November 2019. Through its wholly owned subsidiary AES Solutions Management, the utility will help Google find clean
energy projects in the US and Latin American markets in line with the IT giant’s clean energy objectives. Source: Taiyang News, Jun 25

Funding News EIB Provides $49 Million Financing for a 200 MW Solar Project in Spain https://bit.ly/mercomevpg

The European Investment Bank (EIB) is investing €43.5 million (~$48.84 million) to finance four 50 MW solar PV projects solar projects in Andalusia, Spain.
Despite the COVID-19 related lockdown in Spain, over 85% of the construction plan was successfully completed by May 2020. This investment, backed by the
European Fund for Strategic Investments (EFSI).
According to Mercom Research, in July 2019, EIB and Spanish state-owned bank Instituto de Credito Oficial (ICO) to finance a 500 MW Nunez de Balboa
solar PV project in Extremadura, Spain. The project is located between the municipalities of Usagre, Hinojosa del Valle and Bienvenida in Badajoz province.
The EIB will lend €145 million (~$162.84 million) and the ICO will lend up to €140 million (~$157.23 million), making the total investment €285 million (~$320
million). Source: EIB, Jun 26

Industry News Spain Pushes Clean Energy Decree to Speed Renewable Rollout https://bit.ly/mercomscph

Spain’s cabinet approved a decree aimed at smoothing the rollout of renewable energy generation, with measures to combat speculation in the market, cut red
tape and overhaul an outdated auction system to reassure investors and lower prices.
Spain wants to make use of rich natural resources including prodigious sunlight both to reduce pollution and create jobs, in response to the devastation the
coronavirus has wrought on an economy that relies heavily on tourism and cars. It follows plans being developed by the European Union (EU) to use low-
carbon investments to battle the downturn. Spain is working on joining a handful of wealthy nations embedding targeted emissions reductions into law.
One area the decree aims to address is control over permits to pump power into the grid, which renewable developers complain are being hoarded for profit,
pushing up the cost of establishing new solar or wind projects. Responding to the fact that around 60% of outstanding requests for these permits appear to be
purely speculative, the Energy and Environment Ministry said it would oblige holders to prove they were building plants or risk losing a deposit. Power auctions
will now be based on the price of energy, a structure the ministry said would allow developers to better plan investments and revenue, and reduce the eventual
price of electricity for consumers.
Simplifying other permitting processes should help generate jobs across the supply chain, the ministry said, adding 90% of the components of a wind turbine
and 65% of a solar plant can be produced in Spain. The measures were presented as an urgent decree, meaning they are likely to be approved unchanged by
parliament in the coming days. Source: Reuters, Jun 23

Industry News Austria Doubles Financial Support for Solar Rebates https://bit.ly/mercomarbt

Austria’s coalition government has doubled the budget for its residential solar subsidy program. Homeowners who install systems with capacities of up to 5 kW
will now qualify for a rebate of €250 (~$282.15) per grid-connected kilowatt installed, or €350 (~$395)/kW of off-grid capacity.
The new budget for the program is €10 million (~$11.28 million) and the application period, which is now open, has been extended, following delays triggered
by the COVID-19 crisis. The money will come out of the Austrian climate and energy fund, which also offers subsidies for PV projects up to 1 MW in size –
primarily in regions affected by climate change.
The Austrian government aims to generate all of the nation’s electricity from renewables by 2030. To that end, it wants to set clear clean-energy expansion
targets, with a new renewable-energy expansion law now being finalized. Source: PV Magazine, Jun 23

Funding News Cleantech Solar Receives $75 Million Green Loan to Help Set Up 500 MW of Solar Projects https://bit.ly/mercomclstc

Cleantech Solar, a Singapore-based commercial and industrial (C&I) focused solar developer, announced that it received a green loan of $75 million from the
Singapore branch of the ING Bank to support the company’s expansion across Southeast Asia. In its press statement, the company said that this was the
largest green loan in the Asia Pacific region to date for the C&I segment. Cleantech Solar added that these funds would be used to help it set up over 500 MW
of solar projects to help local and multinational corporates across the region to switch to clean energy solutions.
The total corporate funding in the solar sector, which includes venture capital funding, public market, and debt financing, plummeted by 31% at $1.9 billion in
Q1 2020 as compared $2.8 billion raised in Q1 of 2019. The findings were revealed in Mercom Capital Group’s recently released Q1 2020 Solar Funding and
M&A Report. The total corporate funding stood at $2.7 billion in Q4 2019. Source: Mercom India, Jun 23

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Industry News US Solar PV System Costs Falling Faster than Anticipated https://bit.ly/mercomupct

Solar PV system costs in the U.S. are falling faster than anticipated across all market segments, primarily driven by module price reduction, according to new
research from Wood Mackenzie. Residential system prices with mono PERC modules are now expected to fall 17% from 2020 to 2025, up from 14% forecast
pre-coronavirus. Additionally, mono PERC commercial and utility system costs are expected to decline 16% and 20%, up from 13% and 16%, respectively,
during the same timeframe.
In the utility segment, bifacial modules are gaining traction, especially as these modules have been exempt from Section 201 tariffs on all imports into the U.S.
Typically, utility-scale bifacial tracker projects would be more expensive than those with monofacial mono PERC modules due to increased interrow spacing,
resulting in higher civil and land costs. However, bifacial systems also yield system cost benefits.
These include reduced balance of system components and lower labor costs because of the comparatively fewer modules needed when compared to a
monofacial system of the same capacity. In 2020, while bifacial modules are currently exempt from Section 201 tariffs, bifacial system costs are expected to sit
at around 1% less than monofacial mono PERC systems.
US Utility Tracker 10 MW PV System Costs, Pre- and Post- COVID-19, 2019 - 2025E
"However, in a scenario where bifacial modules were subject
to Section 201 tariffs, system costs would be higher than
monofacial mono PERC systems,” said Molly Cox, Wood
Mackenzie Research Analyst.
As module prices represent a shrinking portion of total system
prices, Wood Mackenzie expects a heightened focus on soft
cost reduction from EPCs and developers.
Soft costs, such as customer acquisition in the residential
market, have been a huge barrier to declining system prices,
along with permitting and inspection costs. Source: Wood Mackenzie
However, as hardware costs are expected to decline at a slower pace over the next decade, it will be crucial to understand where the next level of system cost
reduction will occur. “There are efforts under way to address high permitting and inspection costs for residential PV systems. The Solar Foundation and NREL
have collaborated to form The Solar Automated Permit Processing platform (SolarAPP), which could yield savings for residential PV systems,” added Cox.
'Coronavirus impacts will affect residential system prices more so than any other market segment in 2020, says Wood Mackenzie.
Residential projects have more exposure to the impact of the coronavirus due to their shorter project cycles. While there is near term risk for price increases
for larger C&I and utility scale projects, overall 2020 system costs are not expected to be significantly impacted by the coronavirus in these segments. “Module
cost reduction will be the most significant factor impacting C&I and utility system costs as a result of the pandemic. Not only are module manufacturers facing
reduced demand and subsequently lowering margins to stay competitive, but they are also looking at a reduction in supply chain component costs, leading to
further module price declines,” said Cox.
The Investment Tax Credit (ITC) reduction to 26% in 2020 will create further downward price pressure across all market segments, for both EPCs and
developers, according to the Wood Mackenzie report.
The stepdown will cause companies to closely analyze their cost stacks and ensure solar PV systems are still competitive with a 4% ITC reduction. Having
said that, companies have been preparing for the ITC stepdown, so we do not expect any drastic changes to system prices in 2020 as a result. As the solar
industry faces demand destruction in 2020 from coronavirus impact, we expect demand to pick back up again by the end of the year and before the ITC steps
down again in 2021.
“As a result, companies across all market segments may be able to maintain healthier project margins towards the end of 2020 as a result of the heightened
demand, just like we saw at the end of 2019,” said Cox. Source: Wood Mackenzie, Jun 24

Industry News Australia's NSW First Renewable Zone Attracts 27 GW of Solar, Wind, and Storage Proposals https://bit.ly/mercomrchg

The New South Wales government’s (NSW) plan to establish its first renewable energy zone in the state’s Central West has received a phenomenal
response, attracting 113 registrations of interest for projects totaling a massive 27 GW and valued at $38 billion.
The response was revealed, less than one month after the state Coalition government put out the call for 3,000 MW or more of potential wind, solar and
storage project proposals looking to join the state’s - and Australia’s - first Renewable Energy Zone (REZ).
“With our local communities doing it tough from drought and now the COVID-19 pandemic, this phenomenal response shows the massive opportunity REZs
can create with jobs, investment and new revenue streams for regional NSW,” said NSW deputy premier John Barilaro.
“The Central-West Orana REZ is expected to generate $4.4 billion in investment, create 450 construction jobs, help put downward pressure on electricity
prices and allow landowners to diversify their incomes by hosting renewable energy infrastructure. “By coordinating development in a strategic way, REZs also
help us get the land use planning right, and renewables built in places that work for the community, not just developers.”
The happy news of the stunning market response was accompanied by the announcement of a boost to state funding for the scheme, with a further $31.6
million added to the $9 million already committed, making a total of just over $40 million. At the same time, the Australian Renewable Energy Agency (ARENA)
has tipped in $5 million from federal coffers to go towards a study by network operator Transgrid into the feasibility development of the proposed Central-West
Orana Renewable Energy Zone (REZ).
ARENA said the $16.2 million study would assess the technical and commercial options for the development of new high voltage transmission lines for
Australia’s first coordinated REZ and demonstrate a pathway for future REZs across the National Electricity Market. “With this funding locked in, we can bring
the Central-West Orana REZ from a vision to a reality,” said NSW energy minister Matt Kean in a statement.
“The Central-West Orana REZ, the first of the State’s three Renewable Energy Zones, will be the modern-day equivalent of a traditional power station,
capable of powering 1.3 million homes. “I want NSW households and businesses to have some of the cheapest and cleanest electricity in the world and this
REZ will bring in the low-cost solar and wind to do that.”
“The Energy Corporation of NSW will oversee the development of the REZ, and this new funding will enable it to coordinate the technical design and planning
processes, lead community engagement and oversee the local benefit sharing process,” Kean said.
Another party sure to be watching the whole process with great interest is the Australian Energy Market Operator, (AEMO) whose Integrated System Plan
(ISP) itself canvases the development of renewable energy zones across the NEM. To this end, the ARENA-backed study will be of most interest, in its
investigation of all aspects of delivering a REZ and providing a template for a national approach. Source: Renew Economy, Jun 23

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Industry News Ukraine Agreement on Retroactive FIT Cuts https://bit.ly/mercomukrn

On June 10, the Memorandum of Understanding (MoU) on the Settlement of Problematic Issues of the Ukrainian Renewable Energy Sector was signed by the
Prime Minister of Ukraine, the acting Minister of Energy and representatives of major renewable energy associations UWEA (Ukrainian Wind Energy
Association) and EUEA (European-Ukrainian Energy Association). The official final text of the MoU has not been published yet.
Based on the public information and the text of the MoU
The producers agreed that the FiT rates will be reduced as follows:
provided to us by the above associations, the key points of
the MoU relate to the following: a) Reduction of the FiT - Commissioning Date FiT Reduction
The mechanism of implementation of the changes to the FiT Solar Wind
has not been specified in the MoU, and remains to be July 01, 2015 - December 31, 2019 ≥ 1 MW <1 MW 7.5% *
elaborated in the implementing legislation. 15% 10%
From January 01, 2020 2.5% (irrespecEve of installed capacity)
b) The term of the FiT - The term of the FiT will not be
extended, although this option has been previously discussed The FiT is capped at the level of the FiT for ground solar of >10
Before August 01, 2015
MW commissioned before March 31, 2013, decreased by 15%
for restructured projects. Hence, the FiT will continue to apply
until December 31, 2029 as contemplated by current * exсept where the installed unit capacity of a wind turbine is less than 2 MW
legislation, as will the term of validity of the power purchase Source: Redcliffe Partners
agreements (PPA).
c) Cut-off date - The cut-off date for the commissioning (putting into operation) of solar power projects under construction with the signed so-called pre-PPA
in order to be eligible for the FiT is set for July 31, 2020.
d) Balancing responsibility - Balancing responsibility of producers will be introduced as follows:
• 50% from January 01, 2021; and
• 100% from January 01, 2022, subject to tolerance margins of 10% for wind and 5% for solar
e) Settlements with producers - The state authorities will ensure timely payments for electricity produced under the FiT beginning from the month following
the adoption of the Restructuring Law. The indebtedness accrued by the offtaker to renewable energy producers since January 01, 2020 should be paid, with
40% payable in Q4 2020 and the remainder payable until the end of 2021 in the quarterly instalments of 15%.
f) Compensation of curtailment - The state authorities will elaborate on the legislation required to implement the mechanism of compensation of curtailment
of electricity production within one month following the adoption of the Restructuring Law.
g) Stabilization clause - The express stabilization clause will be included in the Law of Ukraine On the Regime of Foreign Investment, Electricity Market and
other relevant laws to guarantee that rights and obligations of parties to PPAs will be governed by legislation effective as of the date of enactment of the
Restructuring Law, taking account of the amendments made in order to implement the MoU.
h) Renewable energy auctions - The government will adopt the quotas for the renewable energy auctions within two months following the adoption of the
Restructuring Law. The first auctions will be carried out until the end of 2020. Source: Redcliffe Partners, Jun 2020

Industry News IEEFA: Renewables Continue to Break Records Despite COVID-19 https://bit.ly/mercomrcbg

Despite the devastating impact of COVID-19, during the months of April and May, renewable energy continued to break records, according to the Institute for
Energy Economics and Financial Analysis (IEEFA).
Even as the global economy has been locked down by the COVID-19 pandemic, May 2020 saw the renewable energy and storage sectors continue to achieve
new record-breaking milestones. Stranded asset risks for the coal-fired power sector continue to grow as a result, sending global capital fleeing for the exits.
Author Tim Buckley, IEEFA’s director of energy finance studies South Asia says one of the most relevant impacts of COVID-19 has been the collapse of
interest rates in global developed markets collapse.
In May 2020: Renewable Energy Milestones Continue
• A global record-low solar tariff of just $13.50/MWh was awarded in Abu Dhabi.
This was 13% below the previous record low set in January 2020 in Qatar at
15.60/MWh
• The New Mexico Public Regulation Commission (NMPRC) approved a 100 MW
of solar generation and 50 MW of dispatchable battery storage for about
$30/MWh
• California awarded seven projects totaling 770 MW of battery storage
• Siemens Gamesa announced its proposed launch of a new record 14 MW
offshore wind turbine, for commercial deployment in 2024
• In Australia, the Queensland government’s CleanCo awarded a 400 MW solar
contract to Neoen Source: IEEFA
• Two mega-renewable hydrogen projects were reported in China. GD Power Development plans to build a $2 billion project with up to 2 GW of renewables
capacity in northern Inner Mongolia. Utility Beijing Jingneng Power plans a $3 billion project with capacity of 5 GW
• Six new or tightened coal exit policies were announced by globally significant financial institutions, taking the 2020 to-date tally to 37 announcements
• BlackRock completed its thermal coal miner divestment in May 2020 and put KEPCO on notice over the Korean utility’s plans to continue investing in new
coal-power plants
• The European Union announced a record green recovery stimulus in May 2020, including €91 billion (~$102.89 billion) a year for home energy efficiency and
green heating, €25 billion (~$28.26 billion) of renewable energy, €20 billion (~$22.61 billion) for clean cars over two years, plus €60 billion (~$67.84 billion) for
zeroemissions trains. Corporate and financial sector momentum for decarbonization is building globally

The hype of hydrogen continues to build, with a record number of ever-larger renewable hydrogen electrolyser projects being announced. A decade ago, most
projects were smaller than 0.2 MW. Over the last three years, several projects were in the range of 1-5 MW, with the largest at 6 MW. This year has seen a 10
MW project commissioned in Japan, while a 20 MW project has commenced construction in Canada.

Press reports suggest China is developing projects that will dwarf these installations. With a 20% year-on-year decline in solar module costs to just $0.17-
0.20/W, and collapsing global interest rates, there is no sign that solar deflation will slow anytime soon. And with China announcing a record number of solar
manufacturing capacity expansions, economies of scale continue to combine with technology improvements to drive this trend.

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Continued IEEFA: Renewables Continue to Break Records Despite COVID-19 https://bit.ly/mercomrcbg

Renewable Energy Deflation Is Ongoing Since we founded Solar Deflation is Set to Continue
this global energy-finance thinktank in 2013, IEEFA has
consistently illustrated the ongoing deflationary trend in
renewable energy, and more recently in battery costs.
The ongoing rate of technology-driven cost declines has
surprised all, even extreme optimists like us.

IEEFA expects double-digit annual deflation to continue over

the coming decade. Consistent with energy technology
thought leaders such as Michael Liebreich, IEEFA expects
zero emissions variable renewable energy (VRE) generation
costs to be near zero by 2030-2040 in many high quality
resource areas globally (ranging from Arizona to Spain,
Rajasthan, and North Queensland), hence the rush to
commercialize and upscale pumped-hydro storage (PHS),
lithium-ion batteries and Power-to-X conversion.

This also underpins IEEFA’s work to identify stranded asset

risks in the thermal power generation sector, along with
associated coal mining, port and rail infrastructure. Source: Solar’s Future is Insanely Cheap (2020), IEEFA
IEEFA also expects the International Energy Agency (IEA) to continue to be surprised every year over the coming decade at the speed of ongoing technology
driven deflation and hence the rate of uptake of renewable energy, electric vehicles and battery storage, as it has been for the past decade, every year without
fail.
Solar Modules of Just $17-20c/W - The idea of solar deflation has been well documented over the last decade. In a dynamic similar to Moore’s Law of silicon
semiconductor chips, ongoing technology enhancements, combined with a manufacturing scale today that was undreamt of only a decade ago, means that the
cost of a solar module is just $17-20c/W, down over 90% versus $2/W in 2010.
For many years commentators like the IEA have ignored this trend, and Double-Digit Annual Solar Deflation Continues
consistently forecast ~4% annual deflation of solar costs over the coming decade,
with this ‘conservative’ error compounded by estimates of the average current
year starting tariffs at double the actual experience.
Last month, Bank of America published a report highlighting that solar module
spot prices reached $17-20c/W in May 2020, down 20% year-on-year. Prices are
half the $30-40c/W of just two years ago.
Whereas a 1-2 GW solar module manufacturing plant was world-scale two years
ago, China is announcing plants of 5-10 GW capacity in 2020, showing the
dramatic scale advances that are being implemented now.
We note that COVID-19 has also seen interest rates in global developed markets
collapse. For example, the U.S. 10-year Treasury rate started 2019 at 2.7%; 18
months later rates are at a multi-decade low of 0.7%, down 70%. These fixed
rates can be locked in for the long term. Source: GTM, Woodmac (IEEFA)
For solar, the tariff required is a direct function of the solar resource, the capital cost of installation, and the required rate of return for debt. With dramatic falls
in the capital cost of solar and dramatic falls in the cost of funding, the two most important inputs into the solar tariff have fallen hugely relative to even two
years ago. IEEFA draws a conclusion completely at odds with what the IEA is saying, notably that COVID-19 is a setback for the inevitable technology-driven
trends of deflationary renewables. We see increased stranded thermal asset risks.
On the ongoing gains in economies of scale, we note that in May 2020 Siemens Gamesa announced its proposed launch of a new record 14 MW offshore
wind turbine, for commercial deployment in 2024. This is 20% bigger than GE’s 12 MW Haliade-X giant launched in 2018. It was based on the expectation of
14-15 MW turbines that Ørsted and EnBW tendered in for a zero-subsidy offshore wind project in Germany in April 2017.
At the time the financial markets were sceptical this could be achieved. Wind turbines are generally in the 2-3MW range today, double to treble the 1MW
average a decade ago. Source: IEEFA, Jun 2020

Funding News CIT Leads $85 Million Financing for a 80 MW Pioneer Solar Project in Colorado https://bit.ly/mercomcitr

CIT Group announced that its Power and Energy unit served as sole lead arranger on an $85 million financing for the 80 MW Pioneer Solar project near
Denver, Colorado. The financing was arranged on behalf of project sponsor Idemitsu Renewables (formerly Solar Frontier Americas), a solar project
developer. The project will sell power to Intermountain Rural Electric Association (IREA), a nonprofit electric distribution cooperative based in Sedalia,
Colorado. In connection with the financing, CIT is providing a package of cash management and capital markets services.
According to Mercom's Q1 2020 Solar Funding and M&A Report, CIT Group's Power and Energy business served as coordinating lead arranger for $42.8
million in debt financing for a 70 MW portfolio of community solar projects in New York state. The New York solar portfolio is owned by the third fund of energy
infrastructure asset manager True Green Capital Management. Source: CIT Group, Mercom Capital Group, Jun 24
Technology
Deploying Rotating PV Arrays on Cooling Towers https://bit.ly/mercomdpyl
Highlight
Researchers from Sweden’s Mälardalen University have come up with a new rotating PV array concept for vertical deployment on the cooling towers of
thermal power plants. The proposed model is defined an “adaptive celestial motion-based solar PV system” that can rotate around its own axis and revolve
around the cooling tower to follow the sun. The scientists selected three thermal power plants with cooling towers in China for a case study.
Surface area - The group explained that the best balance between power output and energy-harvesting efficiency is achieved when only one-sixth of the outer
surface of the cooling tower is covered with PV modules, at a tilt angle of between 60° and 90°. “In terms of elevation angle of solar panels, the studied system
can always keep the solar panels as perpendicular to the solar rays due to the ability of rotating around its own axis,” it stated, adding that the area of space
between the solar panels should account for 20% of the total solar array area.

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Continued Deploying Rotating PV Arrays on Cooling Towers https://bit.ly/mercomdpyl

For example, at the Wujing Thermal Power Plant, the solar array would occupy a The Research Team’s Rotating and Revolving Solution
total surface of 4,676.8 meters squared, assuming the deployment of 2,405
panels with power output of 365W.
Four designs - Four different PV system configurations were proposed for such
projects: with fixed solar panels on the cooling tower with an azimuth angle of 0°
and a tilt angle of 15; with panels rotating on their own axis to adjust the tilt angle
with a fixed azimuth angle of 0°; with modules revolving around the cooling tower
to adjust the azimuth with a fixed tilt angle of 15°; and with rotating and revolving
panels collaboratively adjusting the tilt angle and the azimuth angle.
“This is totally new design which integrates the existing … facilities without
negative impacts of land-use and also close to the electricity demand sides,”
research coordinator Jinyue Yan told PV Magazine. “I had this idea one year ago
and we have not seen a similar system in the market.”
Cost concerns - Projects developed with these technologies at the three Chinese
thermal power plants have capacities of 1.76 MW (Wujing), 3.52 MW (Datong),
and 1.82 MW (Hami). Source: Mälardalen University, PV Magazine
“The estimated hard cost is about $1/W,” Yan said. “We estimate the costs of the installation is similar as roof PV power generation without costs for the land
occupation. As system can be rotated, the efficiency can be higher than the fixed roof top PV power generation.” The annual power yield and total power
generation during a project’s lifetime is also higher with the rotating and revolving configuration, the scientists claim. The best return on investment, however,
is ensured by the revolving configuration.
“The levelized cost of energy (LCOE) of the proposed photovoltaic system with the ‘fixed’ or ‘revolving’ configurations is lower than the local benchmark price
of photovoltaic electricity in the three studied power plants, indicating the possibility of reaching grid parity,” Yan stated.
Cooling towers - Such projects are also cheaper to install than ground-mounted arrays or rooftop PV plants due to their proximity to the power grid. “In
China, there are more than 2,000 cooling towers of thermal power plants - thus, we predict that the cooling tower-based PVs has huge potential for bringing
considerable economic and energy benefits in the future,” the research group said. Source: PV Magazine, Jun 2020
Despite COVID-19 Market Contraction, Appropriate Stimulus Measures Can Deliver Bright
Industry News https://bit.ly/mercomdcmr
Global Solar Forecast
According to SolarPower Europe's recently published Global Market Outlook 2020-2024, which analyses solar installations in 2019, and forecasts capacity for
2020–2024. The market analysis showed that in 2019, the global solar sector returned to a two-digit growth path, increasing by 13% to 116.9 GW, marking a
new annual installation record. This record-breaking growth helped solar expand its annual share among all other power generation technologies to 48%,
which means that solar accounted for almost half of the global net power plant capacity installed in 2019.
Due to the impact of COVID-19 and the extended lockdown on the global economy, the solar market will experience a contraction in 2020, with an expected
decrease of 4% to 112 GW in the Medium Scenario. Compared to last year’s Global Market Outlook forecast which projected 144 GW of new solar, this
represents a decrease of 32 GW.
This decline is due to reduced demand, and restrictions on labour and supply chain issues. However, if governments opt for sustainable post-COVID economic
recovery packages, solar is forecast to undergo strong growth in the next four years, with annual demand to increase by 34% to 150 GW in 2021, 12% to 168
GW in 2022, 9% to 184 GW in 2023, and 9% to 200 GW in 2024.
Key takeaways:
• In 2019, the global solar power sector returned to a two-digit growth path, increasing by 13% to 116.9 GW, marking a new annual installation record
• Solar expanded its annual share among all other power generation technologies to 48%
• Despite a potential 4% market contraction in 2020 due to COVID-19, solar is expected to enter the Terawatt age in 2022, only four years after the 0.5 TW
level was reached
• In 2019, 16 countries added over 1 GW, in comparison to 11 in 2018, and 9 in 2017
• The top 5 solar markets in 2019 were China with 30.1 GW of new installations, the U.S. with 13.3 GW, India with 8.8 GW, Japan with 7 GW, and Vietnam
with 6.5 GW
In 2019, the global solar power sector returned to a two-digit growth path, Net Power Generating Capacity Added in 2019 by Main Technology
increasing by 13% to 116.9 GW, marking a new annual installation record.
This growth helped solar to expand its annual share among all other power
generation technologies to 48% - in other words, almost half of the global net
power plant capacity installed in 2019 was based on solar PV technology. While
solar’s combined electricity output reached a mere 2.6%, this highlights the
immense growth potential, which is increasingly in reach.

Analysis from various sources substantiates the fact that utility-scale solar is often
the lowest cost power generation technology, with costs continuing to go down.
While solar can compete with combined cycle gas turbines (CCGT), the rapidly
decreasing cost for batteries enables solar + storage to outcompete gas peakers,
depending on region and framework conditions.
Only one year after several tenders saw solar-winning bids enter the 2 US cent
/kWh level, the next frontier was reached in 2019, when solar tariffs in the 1 US
cent range were reported from four different regions: Latin America, North
America, Europe, Middle East. Source: Frankfurt School-UNEP Centre/BNEF (2020), SolarPower Europe (2020)
Cost leadership alone is insufficient to expand the solar market if the policy framework is not fit for solar. This was again experienced in several of the major
markets. The most prominent example is the world’s largest market China, which decreased by 32% to 30.1 GW, as the country’s administration was still
struggling in 2019 (and still is) with its energy transformation – from a former uncapped and generous feed-in tariff system, to a market-based scheme
including auctions and IPP systems.

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Continued https://bit.ly/mercomdcmr
Global Solar Forecast
India, the world’s third largest market, suffered from multiple problems and installed 11% less solar in 2019 than the year before. The good news is that a trend
continued and gained momentum that could already be observed last year. The low cost of solar and its unique, versatile nature have been attracting many
new markets to embrace the technology, while several emerging markets strongly committed to solar power generation.
In 2019, 16 countries added over 1 GW, in comparison to 11 in 2018, and 9 in 2017, showing how the diversification of the solar sector is beginning to unfold
into markets with notable volumes, which together are able to absorb the slumps of leading markets.
Notable growth regions in 2019 included Europe, which added 22.9 GW - more than twice the capacity of the previous year - and the Middle East and Africa,
where primarily tenders helped several countries turn into viable on-grid solar markets. In the case of Sub-Saharan Africa, these tenders were frequently and
successfully facilitated by developing finance institutions.
Due to the effects of COVID-19, 2020 can be considered for the solar sector a year, where demand is expected to shrink by 4% to 112 GW in our Medium
Scenario. The good news is that we expect the following four years, covered in our Global Market Outlook, to add even more solar than we anticipated last
year. Although the actual growth level will depend, among other things, to the extent that solar will receive support from various economic stimulus programs.
Evolution of Global Annual Solar PV Installed Capacity 2000-2019
Overall, 2019 was a decent growth year for the global solar sector,
improving with a low two-digit rate after it basically paused the year before.
Looking beyond the newly-installed worldwide solar capacity, solar
developments look much brighter. Despite China’s dramatic demand
decrease last year, global installations grew by two digits, showing that the
world’s desire for solar power is diversifying, with an increasing number of
countries turning towards the sun.

In any case, solar maintained its title as the most attractive power
generation source installed in 2019. As in the years before, not only was
more solar PV added than all fossil fuel and nuclear power generation
capacities combined, it also saw nearly twice as much power installed as
wind, and more than all renewables together.

On top of these impressive achievements, solar’s power generation share

increased to 48%, compared to 42% in 2018. However, these positive
developments showing solar dominating annual global power generation
Source: SolarPower Europe capacity additions need to be taken into perspective.

When looking at solar’s cumulative share it is still very small, adding up to only 8.5% by the end of 2019. Regarding actual output, all solar PV systems united
generated a mere 2.6% of the global power output. This is also true in comparison to renewables as a whole, which owned about one third of total generation
capacities, and 23% in the world’s power output in 2019. The good news is that the market potential for solar is immense, and its constantly improving cost-
competitiveness will enable the technology to reach an increasingly larger share. Source: SolarPower Europe, Jun 2020
Global Top 10 Solar PV Markets Total Installed Shares by End of 2019

Source: SolarPower Europe

Industry News Poland Can Have 7.8 GW Solar PV by 2025 https://bit.ly/mercomplnc

Poland’s Institute for Renewable Energy (IEO) expects the country’s solar PV capacity to reach 7.8 GW by 2025, surpassing the 2030 goal set in the National
Plan for Energy and Climate.
The country’s total installed PV capacity neared 1.5 GW at the end of 2019 and it is expected to jump to 2.5 GW this year, the IEO said. For now, growth is
being driven by micro-installations, which accounted for 640 MW of capacity additions in 2019 and 300 MW in the first quarter of 2020.
The institute expects to see a boom in large-scale solar in 2021 and 2022, when projects from three auctions will be put into operation. As compensation for
the impact of the coronavirus pandemic, winners in the 2018 auction have been given until May 2021 to complete their projects. Another auction is expected in
the fourth quarter of 2020. It is planned to award 800 MW in the <1 MW category, and at least 700 MW in the >1 MW pot. This will add to the 1.7 GW of solar
projects to be build as a result of auctions carried out in 2016-2019.

Thanks mainly to such renewable energy tenders, the share of large solar farms in total installed capacity is seen to rise to the level of micro-installations in
2022 and 2023. In 2023, the country’s PV capacity will hit 6.6 GW, IEO projects. Source: Renewables Now, Jun 22

Click here to obtain a copy of Mercom's Q1 2020 Solar Funding and M&A Report - https://bit.ly/MercomSolarQ12020

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Mercom's 1H 2020 Report on Global Solar Funding and M&A Releasing Next Week
Update http://bit.ly/MercomSolar
Subscribe for 2020 and save ~20%
Mercom Capital Group’s 1H 2020 Solar Funding and M&A Report deliver comprehensive, high-quality analysis and superior insight into solar market trends
around the globe. This must-read report gives professionals a clear vision on the financial landscape of the global solar industry, and helps them make solid
business decisions that put them ahead of the market.
Also available:
Custom Excel Sheets with all transactions for the quarter, Custom Research with data from the past 5 years! Quarterly market and deal activity displayed in
easy-to-digest charts, graphs and tables, alongside data-driven analysis.
The report covers all types of deals and financing activity, including:
• Venture capital funding deals, including top investors, QoQ trends, and a breakdown of charts and graphs by technology, sector, stage and country
• Large-scale project funding deals, including top investors, QoQ trends and breakdown charts and graphs by technology and country
• Public market financing, including equity financing, private placements and rights issues
• Debt and other funding deals, as well as QoQ trends
• Third-party residential/commercial project funds
• Large-scale project acquisitions and active project acquirers
• Large-scale project announcements in various levels of development throughout the world
• Mergers and acquisitions (M&A), including QoQ trends, a breakdown of charts and graphs by technology and sector, as well as project M&A activity
• New cleantech and solar funds
• New large-scale project announcements
• Large-scale project costs per MW
This report also contains comprehensive lists of all announced Q2 2020:
• VC funding, debt financing, public equity financing, and project funding deals;
• VC and project funding investors;
• M&A transactions;
• Project acquisitions by amounts and megawatts;
• M&A, and project M&A transactions;
• Large-scale project announcements. Source: Mercom Capital Group, Jun 2020

Click here to obtain a copy of Mercom's Q1 2020 Solar Funding and M&A Report - https://bit.ly/MercomSolarQ12020

Disclaimer: When quoting, please cite “Mercom Capital Group”. Although information in this report has been obtained from sources that we believe to be reliable, Mercom Capital Group does not guarantee its
accuracy and is not liable for its use. Mercom reports may not be reprinted, reproduced or republished whole or in part without express permission from Mercom Capital Group.
Copyright © 2020 Mercom Capital Group, llc, All rights reserved.

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