India Leads in Venture Funding for Wind Power
ReNew Power Ventures, a Gurgaon-headquartered renewable energy company, raised the largest amount of venture capital funding in the wind power sector last year, according to a global report on wind energy funding and M&A activity for 2015.
ReNew Power Ventures raised $265 million in venture funds last year, accounting for more than half of total venture capital investments in the sector globally last year, according to the report released by Mercom Capital Group. Global venture capital investments in wind power in 2015 rose to $520 million in 14 deals from $311 million in 15 deals in the previous year.
Last year saw record global activity in wind energy with $15.4 billion in corporate funding brought into the sector against $11.8 billion in 2014, the report said.
Merger and acquisitions deals in India included Sudhir Valia’s acquisition of wind power assets of Jaiprakash Associates for $27 million. Valia is the promoter of Fortune Financial Services (India),
Inox Wind Infrastructure Services, a wholly owned subsidiary of Inox Wind, acquired 100% of the equity shares of Sarayu Wind Power (Tallimadugula), a wind project developer, for an undisclosed sum.
Gujarat NRE Coke, an independent producer of met coke in India, sold 62 windmills situated in Gujarat for a consideration of $33.46 million. The combined installed capacity of the windmills is 87.5 MW.
Public market financing in the wind sector was down last year with $2.8 billion in 20 deals, compared to 16 deals for $3.7 billion in 2014. There were three IPOs in 2015, including two yieldcos, raising a total of $1.3 billion.
Announced debt financing in 2015 increased more than 56%, bringing in $12 billion in 40 deals, compared with $7.7 billion in 23 deals in the previous year.
Announced large-scale project funding deals in 2015 totalled $18.3 billion in 101 deals, compared to $19.9 billion in 120 deals in 2014. A total of 113 investors participated in these deals. Top investors continued to be development banks including KfW IPEX-Bank, which funded 14 projects, Brazilian Development Bank with nine, Santander with seven and Overseas Private Investment Corporation, which funded five projects.
Wind corporate M&A activity in 2015 accounted for 48 transactions, of which only 30 disclosed transaction amounts. In comparison, there were 28 transactions (12 disclosed) in 2014.
Of the 48 M&A transactions, wind downstream companies accounted for 32 this year compared to 20 of the total 28 M&A transactions in 2014.
Wind downstream companies also accounted for most of the VC funding with $505 million out of $520 million raised.
Following by ReNew Power Ventures were Eren Renewable Energy, which raised $114 million, and Apex Clean Energy that secured $80 million in two separate deals.
The top three M&A transactions this year all involved wind downstream companies. The top M&A transaction in 2015 was the acquisition of Pacific Hydro by China’s State Power Investment Corporation for $2 billion.
There were 154 wind project acquisitions in 2015 for nearly 30 GW compared to the same number of transactions for about 25 GW in 2014. As many as 140 project acquisitions last year involved onshore wind projects, up from 136 in 2014.
Mercom also tracked 48.8 GW of announced large-scale onshore and offshore projects in 2015 in various stages of development globally that could be potential candidates for financing and M&A.
There were 647 companies and investors covered in this report. It is 121 pages in length, and contains 69 charts, graphs and tables.
Source: Economic Times
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