Wind Energy Sector Receives $2.4B in Funding

October 27, 2014 By Karen Henry

wind farm sunset energy manageTotal corporate funding in the wind sector came to $2.4 billion in the third quarter of 2014, according to consulting firm Mercom Capital Group. Funding includes venture capital (VC), public market financing and debt financing.

The only VC deal in Q3 was ReNew Power Ventures’ $140 million raise from Goldman Sachs Group, Asian Development Bank, GEF SACEF India. There were four deals totaling $48 million in Q2 2014.

Large-scale project funding dropped to $3 billion in 28 deals during Q3, compared to $6.3 billion in 38 deals in Q2 2014.

There were six M&A transactions in the third quarter, two of which totaled $81 million. The top M&A transaction this quarter was the acquisition of Polish Energy Partners by Chinese private-equity fund CEE Equity Partners, for $78 million.

Project acquisitions in Q3 2014 were at their lowest since 2010, coming in at $5.3 billion in 49 transactions (19 disclosed) compared to $1.4 billion in 31 transactions (11 disclosed) in Q2 2014.

The top five project acquisitions by disclosed amount include the following:

  1. Laidlaw Capital Group signed a deal with Bard Group to acquire the 400 MW Veja Mate offshore wind project in the North Sea for $1.3 billion.
  2. Masdar Abu Dhabi Future Energy agreed to acquire part of Norwegian oil and gas company Statoil’s stake in the 402 MW Dudgeon offshore wind project in England for $858 million.
  3. A consortium of Danish pension funds, PKA, Industriens Pension, Lærernes Pension and Lægernes Pensionskasse, acquired 50 percent of the 252 MW German offshore wind farm project, Gode Wind 2, from DONG Energy for $812.7 million.
  4. Mainstream Renewable Power acquired the 225 MW Ayitepa wind project in Ghana from NEK Umwelttechnik for $525 million.
  5. China-CEE Fund and Enlight Renewable Energy acquired Polish wind projects Wroblew and Project 2, totaling 250 MW, from GEO Renewables for $406 million.

There were two IPOs this quarter. CECEP Wind-power raised $63 million on the Shangai Stock Exchange, and ELTECH ANEMOS, a Greece-based wind developer, raised $48 million on the Athens stock exchange.

Global VC funding in the wind sector was $455 million in 2013 and $315 million in 2012.

Photo via Shutterstock.

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