Mercom reports $32m drop in global VC funding for wind energy sector in Q1 2014

30 April 2014 (Last Updated April 30th, 2014 18:30)

Mercom Capital Group’s new report on funding and merger and acquisition (M&A) has revealed that venture capital (VC) funding for the global wind energy sector has dropped to $32m (€23m) in first quarter of 2014 (Q1 2014) compared to $93m (€66.9m) in the previous quarter.

Global funding in the wind sector totalled $10.5bn (€7.5bn) in Q1 2014, which included VC funding, public market financing, debt financing, and announced project funding deals.

According to the report, during Q1 2014 the major VC deal was by 3sun Group, a company that installs and maintains offshore wind turbines, which raised $16.7m (€12m) from Business Growth Fund.

During the first quarter of 2014, announced large-scale project funding increased to $7.2bn (€5.1bn) in 29 deals compared to $4.9bn (€3.5bn) in 32 deals in the previous quarter.

Mercom said that a total of 20 investors have participated in multiple project funding deals during the quarter.

The major project funding deal was the $1.47bn received by Typhoon Offshore for its 600MW project.

More than 12GW of new project announcements globally were tracked by Mercom during the quarter in various stages of development.

"Mercom said that a total of 20 investors have participated in multiple project funding deals during the quarter."

According to the report, there were also six M&A transactions in Q1 2014, one of which disclosed amounts totaling $419m (€301m).

In the first quarter of 2014, project acquisitions totalled $3.8bn (€2.7bn) compared to $2bn (€1.4bn) in the previous quarter.

Mercom said the top five major project acquisitions by disclosed amount were led by the investment group La Caisse, which acquired a 25% stake of the 630MW London Array 1 wind project for $1.1bn (€792m).

This follows Brookfield Renewable Energy Partners' purchase of the 321MW Bord Gais Energy wind project portfolio for $960m (€691m); Green Investment Bank and Marubeni's 50% stake in the 210MW Westermost Rough offshore wind project for $832m (€599m); Copenhagen Infrastructure Partners' purchase of a 67% economic share in a 900MW offshore grid connection for wind projects for $526m (€378m); and the Green Investment Bank's purchase of a 10% stake in the 576MW Gwynt y Mor offshore wind project for $366m (€263m).

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