Top10GlobalSolarDevelopersReport-2020

Leading Global Large-Scale Solar PV Developers August 2020 TABLE OF CONTENTS Leading Global Large-Scale Solar PV Developers3 Table of Contents Methodology and Definitions ……………………….……….……….…………………………………………………………………………………………………………………………………………… 4 Global Market Overview ……………………….……….……….…………………………………………………………………………………………………………………………………………………… 6 Key Takeaways …………………………………………………………………………………………………………………………….…………………………………………………………………………… 7 Top 10 Global Large-Scale Solar Developers By Total Capacity ……………….………………………………………………………………………………………. 9 Top Global Large-Scale Solar Developers By Operational Capacity ……………….………………………………………………………………………………………. 11 Top Global Large-Scale Solar Developers By Under Construction and Awarded Capacity .………………………………………………………………… 13 Top 10 Global Large-Scale Solar Developers ……………….………………………………………………………………………………………. 15 Adani Green Energy ……………….……………………………………………………………………………………… 16 GCL New Energy ……………….……………………………………………………………………………………… 18 SB Energy ……………….………………………………………………………………………………………. 20 Enel Green Power ……………….……………………………………………………………………………………… 22 Brookfield Renewable Partners ……………….………………………………………………………………………………………. 24 First Solar ……………….………………………………………………………………………………………. 26 AES Corporation ……………….……………………………………………………………………………………… 28 Invenergy ……………….………………………………………………………………………………………. 30 Lightsource bp ……………….………………………………………………………………………………………. 32 ENGIE ……………….……………………………………………………………………………………… 34 Leading Global Large-Scale Solar PV Developers4 Methodology and Definitions Definitions: Operational Capacity: Solar projects which are commissioned and currently in operational status. Under Construction: Projects that have a signed power purchase agreements (PPAs) and construction has begun. Awarded (Contracted): Projects that have signed off-takers but have yet to start construction. Large-Scale Projects (Utility-Scale): Large-scale projects include projects sizes of one (1) megawatt (MW) or more. PPA (Power Purchase Agreement): Contract to purchase power at a set rate over a predetermined time period. Research Methodology: This report includes a ranking of global solar developers based on operating, in construction, and PPA-awarded (contracted) large-scale solar projects of one megawatt or more, across multiple countries. To qualify for this ranking, developers must have projects in at least two countries. All data included in this report was as of June 2020. All figures are in AC. In two instances, numbers have been converted from DC to AC. Mercom’s analysts utilized both primary and secondary research to compile this report. The key component of Mercom’s analysis is primary research gained from phone and e-mail interviews with company representatives. Additional analysis includes secondary research conducted by Mercom’s staff and analysts. For the two companies that chose to not provide their data directly to Mercom, Mercom relied on the company’s latest public information. This report was commissioned by and is licensed to the Adani Group. GLOBAL SOLAR MARKET Leading Global Large-Scale Solar PV Developers6 Global Market Overview Top 10 Global Solar Markets ❑ The global solar photovoltaics (PV) market had a banner year in 2019, with approximately 120 gigawatts (GW) installed, which was about 15% growth year-over-year. ❑ In 2019, China was the largest solar market, with approximately 30 GW installed, followed by the United States and India. Japan was fourth on the list. The top five markets collectively accounted for 57% of the solar PV capacity installed in 2019. ❑ Close to 20 countries added a GW or more in 2019 pointing to a growing trend of robust mid and small markets as PV has become cheaper than fossil fuels in many parts of the world. ❑ The solar demand is expected to decrease 15-25% in 2020, depending on the severity of COVID-19 on individual solar markets and the global supply chain. However, the solar sector has weathered the crisis much better than other energy sectors. System costs continue to decline, making projects attractive. ❑ Solar auctions have spread and are now the primary method of procurement for large-scale projects globally. ❑ China, the United States, Japan, Germany, and India collectively account for almost 70% of global cumulative solar PV installed capacity as of 2019. Source: Mercom Capital Group 26% 11% 9% 6%4%3.5% 3.5% 3.5% 3% 2.6% 28% Annual Solar PV Installed Capacity, 2019 China USA India Japan Vietnam Spain Germany Australia Ukraine South Korea RoW 33% 12% 10% 8% 7% 3% 2% 2% 2% 2% 19.1% Cumulative Solar PV Installed Capacity, 2019 China USA Japan Germany India Italy Australia UK South Korea France RoW Leading Global Large-Scale Solar PV Developers7 Key Takeaways ❑ In developing this global leader report, a key criterion for qualification was that developers had to have projects in at least two countries. Although there were several developers, like NextEra Energy (approximately 11GW of operational and contracted projects), that would have made the list based on their portfolio size, they were only active in a single country. ❑ India-based, Adani Green Energy emerged as the top solar developer based on operational, under construction, and awarded (contracted) projects. GCL New Energy and SB Energy followed, taking second and third spots. ❑ The list of top developers is a diverse group of companies with global growth aspirations. It includes several renewable energy arms of industrial and power conglomerates, subsidiaries of asset management companies, and pure-play renewable and solar companies. Top developers hail from all around the world, including India, China, the United States, Europe, Japan, and Canada. ❑ The top 10 large-scale developers account for 33 GW of operational projects globally. For under construction and awarded (contracted) projects, the top large-solar developers accounted for 28.7 GW. ❑ While some of the top developers are beginning to grow outside of their domestic markets, many already have large portfolios in several regions of the world. ❑ The large-scale solar development market is extremely fluid, with project portfolios continually churning. Source: Mercom Capital Group Leading Global Large-Scale Solar PV Developers8 Key Takeaways ❑ Top developers are expanding to mature markets like the United States in pursuit of policy certainty, lower risk, and A-rated off-takers. ❑ Developers are also chasing growth in emerging markets, trying to lay the groundwork and tap into the enormous future potential these regions represent, despite ultra-competitive reverse auctions. ❑ The secondary market for large-scale solar projects has been extremely active. According to Mercom’s 2019 Solar Funding and M Under-Construction (Awarded): 1,985 MW; and Awarded: 8,072 MW Business Overview: Incorporated in 1988, the Adani Group is an integrated industrial conglomerate operating globally with six publicly traded companies with total revenues of $15 billion and a market capitalization of ~$30 billion. The Group is headquartered in Ahmedabad, India. It operates in transport logistics and energy and is the only Investment Grade infrastructure issuer in India. Adani Green Energy Limited (AGEL) is a majority owned subsidiary of the group: established in 2015, it is among the largest renewable energy generation companies globally. The company has a total solar portfolio of 12,320 MWac, which includes their operational, under-construction, and awarded capacity. It has commissioned some of the largest utility scale projects in the world. Headquartered in India, the company also has operations in the U.S. and Australia. Notable Developments: 1. In June 2020, Adani Green has secured the bid to develop solar photovoltaic (PV) power projects of 8 GW. This win, the largest in the world in a single bid, will entail a total investment of approximately $6 billion. 2. In March 2020, AGEL announced that it entered a joint venture with Total Solar Singapore for about 2.1 GW of operating solar power projects. 3. AGEL is developing and building one of the largest wind-solar hybrid projects of 1.69 GWac. 2,263 1,985 8,072 - 2,000 4,000 6,000 8,000 10,000 12,000 MW Solar PV Awarded Solar PV Under-Construction Solar PV Operational Leading Global Large-Scale Solar PV Developers17 Geographical Presence: The company has solar PV projects in U.S., Australia, and India. Some of the company’s large-scale utility solar PV projects include: 1. Kamuthi, India (648 MW) 2. Rajasthan, India (600 MW) 3. Karnataka, India (350 MW) 4. Rawra, India (250 MW) 5. Pavagada, India (150 MW) 6. Rugby Run, Australia (65 MW) Pipeline Description: Adani’s solar pipeline includes projects which are under-construction and awarded portfolio and cumulatively accounts for 10,057 MW. Approximately 10% of their pipeline is expected to be completed by 2020, 24% by 2021, 43% by 2022, 62% by 2023, 81% by 2024, and total 100% will be completed by 2023. ADANI GROUP Note: The inner circle represents number of projects; and the outer circle represents capacity 0% 20% 40% 60% 80% 100% 2020 2021 2022 2023 2024 2025 Expected Project Completion Timeline 93% 5% 2% 99% 1% 1% Geographical Presence India USA Australia Leading Global Large-Scale Solar PV Developers18 GCL NEW ENERGY 7,145 - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 MW Solar PV Operational Business Overview: GCL New Energy, a Hong Kong-listed solar independent power producer (IPP), is a subsidiary of the GCL Group, which also owns GCL Poly, a manufacturer and supplier of solar materials. GCL New Energy focuses on solar power generation, development, construction, and operations. The company operates across China and has regional subsidiaries in North America, Japan, and Africa. According to its 2019 annual report, the company has a total portfolio of 7,145 MW in the solar sector. Most of its solar PV projects are in China with others in the United States. At the time of this report, GCL New Energy was actively engaged in solar asset sales. Notable Developments: 1. In June 2020, Suzhou GCL New Energy, a subsidiary of the company, sold a 75% stake of a 100 MW solar project in China to CDB New Energy. 2. In March 2020, Saudi Arabia’s Renewable Energy Project Development Office (REPDO) published a list of the prequalified bidders for a 1.2 GW solar tender, which included GCL. Headquarters: Hong Kong Global Presence: China and the U.S. Offerings and Capabilities: Project Development and EPC Project Portfolio (MW): Operational Capacity: 7,145 MW Note: The company did not disclose projects under construction or that were awarded Leading Global Large-Scale Solar PV Developers19 Note: The inner circle represents number of projects; and the outer circle represents capacity Geographical Presence: The company has solar PV projects in the United States and China. In China, it has a project capacity of 7,009 MW with 209 projects in operations, while in the United States, it has two projects totaling 136 MW in operation. Some of its larger solar PV projects include: 1. Shangyi Yuanchen, China (180 MW) 2. Yulin Longyuan, China (200 MW) 3. Ningxia Zhongwei, China (330 MW) 4. Hengshan Jinghe, China (100 MW) 5. North Carolina 1, U.S. (83 MW) 99% 1% 98% 2% Geographical Presence APAC North America GCL NEW ENERGY Leading Global Large-Scale Solar PV Developers20 SB ENERGY Headquarters: Tokyo, Japan Global Presence: U.S., Japan, and India Offerings and Capabilities: Renewable Power Development and Generation Project Portfolio (MW): Operational Capacity: 3,559 MW; Under Construction: 1,883 MW; Awarded: 1,530 MW Business Overview: SB Energy is a renewable energy developer and a subsidiary of the Japanese conglomerate, SoftBank Group. The company’s core businesses are categorized as: the Watts business, the Bits business, and the Mobility business. The Watts business segment is responsible for the generation of power using natural resources. In contrast, the Bits business combines renewable energy with artificial intelligence (AI) and the internet of things (IoT) to build energy platforms. The Mobility business combines renewable energy with battery cells from electric vehicles (EVs) to develop services. The company has a total solar PV portfolio of 6,972 MW, including operational, under construction, and awarded projects across the U.S., Japan, and India. Notable Developments: 1. SB Energy was the largest bidder in a 2 GW tender by NHPC (India) and secured 600 MW of capacity. 2. SB Energy also won 600 MW in a 1.2 GW tender by Solar Energy Corporation of India (SECI) and was also the largest bidder. 3. In October 2019, SB Energy acquired a portfolio of five U.S. solar power projects with a combined capacity of more than 1.7 GW from Intersect Power. 3,559 1,883 1,530 - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 MW Solar PV Awarded Solar PV Under-Construction Solar PV Operational Leading Global Large-Scale Solar PV Developers21 Geographical Presence: The company has solar PV projects in the United States, Japan, and India. Some examples of their grid-connected PV projects include: 1. Juno, U.S. (412 MW) 2. Titan, U.S. (363 MW) 3. Kurnool, India (350 MW) 4. Athos I, U.S. (357 MW) 5. Athos II, U.S. (284 MW) Pipeline Description: The solar project pipeline includes 3,413 MW of projects under construction and projects with awarded PPAs. Approximately 51% of their pipeline is expected to be complete by 2021, and the remaining 49% in 2022. 93% 7% 76% 24% Geographical Presence APAC North America Note: The inner circle represents number of projects; and the outer circle represents capacity 0% 20% 40% 60% 80% 100% 2021 2022 Expected Project Completion Timeline SB ENERGY Note: Development pipeline based on India projects only; limited information on U.S. and Japan projects Leading Global Large-Scale Solar PV Developers22 ENEL GREEN POWER Headquarters: Rome, Italy Global Presence: Australia, South Africa, Zambia, Brazil, Chile, Peru, Colombia, Panama, U.S., Mexico, Italy, Spain, Greece, and Romania Offerings and Capabilities: Renewable Power Generation Project Portfolio (MW): Operational Capacity: 4,197 MW; Under Construction: 1,798 MW Business Overview: Enel Green Power is the renewable energy subsidiary of Enel Group, an Italian multinational energy group with a portfolio of 82,711 MW according to its 1H 2020 results. Enel Green Power has a presence across five continents in 27 countries with a managed capacity of over 46 GW and more than 1,200 power plants. Notable Developments: 1. In July 2020, Enel Green Power India and the Norwegian Investment Fund for developing countries (Norfund) signed a long-term agreement to finance, build and operate new renewable projects in India. Recently, Enel was awarded a 25-year energy supply contract for the 300 MW (420 MW DC) solar project in Rajasthan, the company’s first solar project in India. 2. In May 2020, Enel Green Power began construction of the second stage of the Finis Terrae Photovoltaic Park in Chile, which will increase the installed c