Wind sector sees strong IPO activity
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 third quarter of 2013.
Wind venture capital (VC) funding dropped slightly to $135 million
compared to $210 million in Q2 2013. Total funding in the wind sector came in
at $5.6 billion in Q3 2013, including VC funding and other equity
financings, debt financings and announced project funding deals.
Mainstream Renewable Power, an independent renewable energy project
developer, raised $133 million from Marubeni Corporation making it the largest VC
deal this quarter. Brazilian utility Cemig’s $621 million investment in project
developer Renova Energia, and the $52 million raised by wind developer
Rabbalshede Kraft, were the other equity financing deals.
Announced large-scale project funding in Q3 2013 totaled $3.7 billion in 28
deals compared to $3.2 billion in 24 deals in Q2 2013. There were a total of 59
investors that participated in project funding deals this quarter.
Mercom also tracked more than 5 GW of new project announcements globally this
quarter in various stages of development.
"With the capital markets thawing and renewable energy industry maturing - especially wind and solar, we are seeing more IPO activity", commented Raj Prabhu, CEO and Co-Founder of Mercom Capital Group, llc.
This quarter Mercom
recorded three IPOs, one each in the United States (Pattern Energy), Canada
(TransAlta Renewables) and Brazil (CPFL Renovaveis), resulting in almost $1
There were 14 M&A transactions in Q3 2013, four of which disclosed
amounts, totaling $280 million. The top M&A transaction this quarter was
the private-equity firm Actis acquiring 60 percent of Atlantic Energias
Renovaveis, a Brazilian renewable energy company, for an initial commitment of
$169 million. Actis joined existing shareholders Pattac (24 percent) and
Servinoga (16 percent), the co-founders of Atlantic. Capstone Infrastructure
Corporation, a Canadian infrastructure company, acquired Renewable Energy
Developers (formerly Sprott Power) for $70 million. Poly LongMa Energy
(Dalian), a Chinese conglomerate focused on conventional and green energy
investments, acquired a 75 percent stake in Suzlon Energy’s China-based
manufacturing subsidiary Suzlon Energy Tianjin, for $28 million. ERG, through
its subsidiary ERG Renew, an Italian wind developer and operator, acquired a
100 percent stake in the company Maluni for $13.2 million.
After a blockbuster quarter of project acquisitions in Q2 2013, Q3 dipped
to 26 transactions for a disclosed total of $177 million. There have been 79
project acquisitions year-to-date compared to 72 in all of last year.
The largest project acquisition by amount was by Greencoat UK Wind, an
investor in operating UK wind projects, which acquired the entirety of the
Cotton Farm and Earl’s Hall Farm (26.65 MW) wind projects from BayWa for $113
million. Following Greencoat, the U.S. investment management firm BlackRock
acquired a 12 MW wind project in Cornwall from Renewable Energy Generation for
$39 million. Guris Construction and Engineering Company, a Turkish
infrastructure company, acquired the wind projects of Subasi (48 MW), Yaprak
(15 MW) and Mugla (70 MW), totaling 133 MW, from Iberdrola for $15.39 million. Nagarjuna
Agrichem, an Indian agrochemicals maker, sold off its entire wind power
business to an undisclosed investor for $5 million as part of its strategy to
consolidate on core business. Goyal MG Gases, an Indian manufacturer and
supplier of industrial gases, acquired an 11.2 MW wind project from DLF for
Of the disclosed project acquisitions in Q3 2013, there were eight
project developers that acquired wind projects, seven investment funds, three
independent power producers, and one utility.
There are 93 companies, 99 projects and 68 investors covered in this
report. The report also includes 39 charts and tables.
To learn more about the report, visit:
Wind Q3 2013 Funding and M&A Report.
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Wind Companies included in Q3 2013:
Energy, Allianz Capital Partners, Alternergy Wind One, Ampelmann, Atlantic
Energias Renovaveis, BARD Engineering, BayWa, BlackRock, Boralex, CBD Energy,
Continuum Wind Energy, CPFL Energias Renovaveis, David Brown, DLF, Dobreve
Energia, Dong Energy, E.ON, Eagle West Wind Energy, EDF, Edison Mission Energy,
EDP Renovaveis, EKZ Renewables, ELEM, Enbridge, Enel Green Power, Enercon,
Energiekontor, Eneris, ENERTRAG, EOLE-RES, Eurowatt, Exelon, Fiera Axium
Infrastructure, First Wind, Fortum, fos4X, Fred. Olsen Windcarrier, Gama
Enerji, GE Capital, Goldwind, Goyal MG Gases, Greencoat UK Wind, Guris,
HelveticWind, Iberdrola, IKEA, Impax New Energy Investors II, Innergex,
Invenergy, Invis Energy, Lincoln Renewable Energy, Mainstream Renewable Power,
Maluni, Masdar, Mesa Power, Metsahallitus, Nagarjuna Agrichem, Natenco, NextEra
Energy Resources, Northland Power, Novoazovskiy Wind Park, Pacific Hydro,
Parkwind, Pattern Energy, Pentalum Technologies, PNE WIND, Rabbalshede Kraft,
Renewable Energy Developers (ReD), Renewable Energy Generation (REG), Renewable
Energy Systems (RES), Renova Energia, Samsung Renewable Energy, Second Wind
Systems, Sempra US Gas & Power, Sigma Power Janex, Smulders Group,
Southwest Windpower, Sravanthi Group, SSE, Starwood Capital, STG, Suzlon Energy
Tianjin, Svevind, TransaAlta Renewables, TVS Energy, Vardar Boreas, Velocita
Energy, Westerly Wind, Wind Power Holdings, Wind Tex Energy, Wind Works Power,