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The wind energy sector could breathe some fresh air with more venture capital funding available in the third quarter of 2012 versus the second quarter. However, mergers and acquisitions in the segment saw a drop.
After a weak second quarter of 2012, the sector saw a positive investment trend in the third quarter attracting $57 million in funding in six deals ($17 million in three deals in the second quarter), says a report by Mercom Capital Group llc, a global clean energy communications and consulting firm. The report deals with funding and merger and acquisition activity in the wind sector during the third quarter of 2012.
According to the report, the disclosed venture capital deals during the quarter included $21.5 million raised by Mainstream Renewable Power and $15.3 million raised by Trishe Developers, both wind project developers.
The announced large-scale project funding in the third quarter totalled $1.1 billion in 11 deals, all going to onshore projects.
There were four notable transactions in India. Trishe Developers, a Chennai-based renewable energy infrastructure company with a focus on wind power infrastructure development, raised corporate venture capital funding of $15.3 million.
Large-scale project funding of $141 million raised by NuPower Renewables for its 150 MW wind power project in Tamil Nadu, and $281-million debt funding raised by Suzlon Energy in short-term loans to repay holders of its foreign convertible bonds.
In the merger and acquisition category, a notable deal was the acquisition of National Wind, a US-based wind project developer by the Chennai-based Trishe Wind Energy, an international wind energy project developer.
Globally, the top large-scale project funding deals announced in the third quarter included $350 million raised by Nareva Renouvelables and Kharabel FZE for its 300 MW Tarfaya Wind Project in Morocco and $165 million raised by Alto Holding for its 120 MW Karaburun Wind Farm in Turkey. The NuPower Renewables deal also features in top global fundings, says the report.
Other top deals were $86 million raised by InfraVest and wpd for its 53 MW Tongyuan Wind Project in Taiwan and the $85-million loan to Newcom for its 50 MW Salkhit Wind Farm in Mongolia.
Only one of 18 large-scale project funding investors, KfW IPEX-Bank, was involved in multiple deals in the third quarter. KfW IPEX-Bank was also involved in multiple deals in the second quarter.
Corporate merger and acquisition activity in the third quarter amounted to $53 million in 11 transactions ($93 million in five transactions in the second quarter). There were four debt funding deals announced in the third quarter totalling $359 million.
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