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 Energy‘s Hallett 5 wind farm (52.5 MW) by Eurus Energy.
For a complete list of Q2 2012 transactions in the wind sector, visit:
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