Wind sector VC funding touches $210 mn in Jun qtr: Mercom

Venture capital funding in the wind sector saw a whopping 12-fold jump to $210 million in the June quarter on the back of some large deals going to project developers in India, says a report.

 

Wind venture capital (VC) funding in the second quarter of 2012 (April-June) stood at $17 million while the figure for January-March 2013 quarter was at $16 million.

 

According to the report by Mercom Capital Group, a global clean energy communications and consulting firm, wind sector VC funding in the second quarter of this year (April-June) saw high levels amid strong project acquisition activity.

 

Among the notable deals, ReNew Power, an Indian wind project developer, attracted $135 million from Goldman Sachs, which raised its total investment in the company to $385 million so far.

 

NSL Renewable Power, also a project developer from India, received $60 million in funding from multiple investors.

 

In two smaller funding deals, IDEOL, a designer and installer of foundations for offshore wind projects, raised $9.1 million. Around $6.2 million was received by ROMO Wind, a wind technology company focused on improving wind turbine rotor function.

 

There were six M&A transactions in Q2 2013, amounting to $328 million and there was significant project acquisition activity this quarter.

 

Thirty-six project acquisitions took place in April-June quarter of 2013, the highest in terms of number of deals since 2010. Moreover, there have been 53 project acquisitions year-to-date (YTD) compared to 72 in all of last year, the report said.

 

"The strong project acquisition activity shows how wind has evolved into a mature and mainstream energy source and an attractive investment for both private and public firms alike," Mercom Capital Group CEO Raj Prabhu said.

 

Most of the project acquirers in the April-June quarter were investment funds with Allianz Capital Partners acquiring three projects this quarter, followed by Enel Green Power, John Laing and Lukerg Renew with two each, the report added.