After Strong First Quarter, Wind Investments Taper

After a strong first quarter, venture capital funding focused on the wind sector tapered off substantially in the second quarter. 

Wind startups typically have a hard time capturing venture capital because much of the technology is so mature. Still, wind-related VC deals in 2012 are actually running at a faster pace than last year, when $369 million was invested in 14 deals.

There were three deals from April to June 2012, amounting to just $17 million spread over three deals, compared with $240 million for 11 deals from January to March, reports market research firm Mercom Capital Group.

The two biggest deals were $9.8 million for ReGen Powertech of Chennai, India, and $7.5 million raised by Southwest Windpower from Flagstaff, Arizona, both manufacturers of wind turbines.

There was $5.4 billion dedicated to large-scale project funding in Q2 2012, across 23 deals: $4 billion went to onshore projects, while $1.4 billion went to offshore development. 

The single biggest funding deal was $741 million raised Colruyt for the 216 megawatt (MW) Northwind offshore wind farm. 

Here are four other big deals from the quarter:

  • $662 million by Lincs Wind Farm Limited for its 270 MW offshore wind farm
  • $650 million by Terra-Gen Power for its 300 MW Alta Wind VII & IX wind projects
  • $444 million by Invenergy for its 200 MW California Ridge Wind Energy Project
  • $379 million by Iberdrola and Neoenergia for 10 wind farms totaling 288 MW 

Big investors with multiple deals during Q2 were BNDES, KfW IPEX-Bank, Union Bank, Bank of Tokyo-Mitsubishi UFJ, BayernLB, EBRD, Lloyds, Rabobank and Santander.

M&A activity amounted to $93 million in five transactions, compared to $872 million in 11 transactions in Q1 2012. 

Disclosed M&A transactions were the $60 million acquisition of wind turbine maker Suzlon Energy Tianjin Limited by China Power New Energy Development Co.; and the $33 million acquisition of blade manufacturer Tellhow Wind Power by Simomatech.

There were 17 project M&As announced in Q2 2012 amounting to $705 million in six disclosed transactions. 

Top project M&A transactions were the $301 million acquisition of Agaoglu Group‘s two wind farms (126 MW) by Dogan Sirketler Grubu Holding, and the $174 million acquisition of AGL Energys Hallett 5 wind farm (52.5 MW) by Eurus Energy.

For a complete list of Q2 2012 transactions in the wind sector, visit:

Website: [sorry this link is no longer available]     
(Visited 6,447 times, 8 visits today)

Post Your Comment

Your email address will not be published. Required fields are marked *