Mercom reports 44.4% surge in global VC funding in wind energy sector in 2013

22 January 2014 (Last Updated January 22nd, 2014 18:30)

Mercom Capital Group’s new report on funding and merger & acquisition (M&A) activity for the wind energy sector in 2013 revealed that total funding reached $28.1bn.

Mercom Capital Group's new report on funding and merger & acquisition (M&A) activity for the wind energy sector in 2013 revealed that total funding reached $28.1bn.

The total funding includes VC funding, public market financings, debt financings and announced project funding deals.

According to the report, global venture capital (VC) funding in the wind sector has reached $455m in 2013, an increase of 44.4%, compared to that of $315m in the previous year.

Of the total VC funding in 2013, seven downstream companies raised a total of $374.3m; six small wind turbine manufacturers raised $68.8m; one wind component company raised $6.2m; and three monitoring software companies raised $5.5m.

Indian wind project developer ReNew Power, which raised $135m, was the top VC-funded company in 2013, followed by Mainstream Renewable Power with $133m.

Other notable VC-funded companies include Indian developer NSL Renewable Power raised $60m; small wind turbine maker Ogin raised $55m; and Indian renewable power producer Green Infra raised $25m.

"The total funding includes VC funding, public market financings, debt financings and announced project funding deals."

The report says public market financings in 2013 were pursued through 17 deals worth total $5.8bn including six initial public offering (IPOs) totalling $2.3bn, while announced debt financing reached to $3.8bn in ten deals in 2013 compared with $12.5bn in 16 deals in the previous year.

Mercom reported a surge in deals related to 'announced large-scale project funding' in 2013 with $18.1bn in 114 deals, compared to the previous year's $14bn in 72 deals.

In 2013, 150 investors were participated in project funding with the top investor being KfW IPEX-Bank with nine deals, followed by the European Investment Bank with seven deals, and Nord/LB with six deals.

M&A activity in 2013 has recorded 33 transactions including 20 by wind downstream companies, six by wind component companies, service providers and manufacturers accounted for three each, and balance of systems (BOS) companies accounted for one transaction.

Of the 33 transactions, 18 were disclosed for a combined $2.6bn, while the top M&A transaction was the $1.25bn acquisition of Kaydon by SKF Group, followed by the acquisition of the Polish onshore wind business of DONG Energy by Polska Grupa Energetyczna and Energa for $314m.

In addition to this, Mercom has reported an increase in disclosed project acquisitions worth 16GW in 2013 with 116 transactions compared to 72 transactions in 2012.

Energy