Mercom Capital Group, llc, a global clean energy communications and consulting firm, released its report on funding and merger and acquisition (M&A) activity for the wind sector during the second quarter of 2014.
Wind venture capital (VC) funding increased to US$48mn compared to US$32mn in Q1 2014. Total corporate funding in the wind sector came to US$4bn in Q2 2014, including VC funding, public market financing, and debt financing.
The largest VC deal in the wind sector in the second quarter was by STX France, a provider of offshore constructions to renewable marine energy and oil and gas markets, which raised US$27mn from BPIFrance, French Environment and Energy Management Agency (ADEME), Credit Agricole, Banque Populaire, Region Pays de la Loire. That was followed by Nenuphar, a developer of vertical-axis floating wind turbine, which raised approximately US$20.8mn from new investors, Areva and FCPR Ecotechnologies, and existing investor IDInvest Partners.
Announced large-scale project funding in Q2 2014 totaled US$6.3bn in 38 deals, compared to US$7.2bn in 29 deals in Q1 2014.
Mercom also tracked nearly 11 GW of new project announcements globally this quarter in various stages of development.
There were seven M&A transactions in Q2 2014, four of which disclosed amounts totaling US$828mn. The top disclosed M&A transaction this quarter was the acquisition of 33.33 percent stake in ACCIONA Energia International, the renewable energy generation business of ACCIONA Energia, by Kohlberg Kravis Roberts (KKR), an investment firm, for approximately US$567mn.
The Top 5 project acquisitions by disclosed amount were led by independent power producer NRG Yield, which signed a deal with Terra-Gen Power, a renewable energy project developer, to acquire the Alta Wind projects in California for US$870mn. That was followed by renewable energy project developer Pattern Energy Group, which agreed to acquire 179 MW of the Panhandle 1 Wind project in Texas from Pattern Development for US$125mn. Investment company Greencoat UK Wind, acquired 24 MW Maerdy wind project in South Wales from Velocita Energy Developments (Velocita), a wind energy company, for approximately US$89.8mn, and the 18.4 MW Kildrummy wind project in Scotland from BayWa r.e, a renewable energy project developer, for approximately US$73.5mn. The final top spot was shared by Enel Green Power North America, a subsidiary of Enel Green Power, which purchased an additional 26 percent of the ‘Class A’ interests in 250 MW Buffalo Dunes wind project in Kansas, from EFS Buffalo Dunes, a GE Capital subsidiary, for approximately US$60mn, and TradeWind Energy, a developer and manager of wind energy projects, which acquired the 150 MW Osage wind project in Oklahoma, from Wind Capital Group, the US wind company of renewables investment group NTR, for US$60mn.
Of the disclosed project acquisitions in Q2 2014, 10 investment firms, eight project developers, four utilities and two independent power producers that acquired wind projects.
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