Q1.14: Cleantech and Renewable Energy Investment Review

Transcription

1 Q1.14: Cleantech and Renewable Energy Investment Review

2 02 Welcome to Taylor Wessing s analysis of clean energy investment activity in the first quarter of The year has started on a positive note, with venture capital and private equity investment, project finance and public markets deal activity all increasing in comparison with the first quarter of Q1.14 was most notable for a 51% quarterly surge in public markets activity to $1.5 billion. This is the largest volume of funds raised on the public markets on a quarterly basis since Q4.10. The most notable deals were Vestas $598 million secondary offering and Suez Environment s $481 million convertible notes issuance. Q1.14 also saw the continuation of the trend of YieldCos raising funds on the public markets. John Laing Environmental Assets Group, which will target renewable energy, waste, and waste water PFI assets, raised $264 million through an IPO on the London Stock Exchange in February 2014, while Bluefield Solar Income Fund secured $22 million in a secondary offering, also in February Project finance increased 34% year-on-year to reach a two-year high of $14.6 billion. This was a direct result of a small number of billion dollar utility balance sheet investments in European offshore wind farms. Dong Energy started construction of the 312 MW Borkum Riffgrund 1 and the 210 MW Westermost Rough offshore wind farms, representing investments of $1.7 billion and $1.3 billion respectively, while E.ON started construction of the 288 MW Amrumbank West offshore wind farm, representing a $1.4 billion investment. Venture capital and private equity totalled $642 million in Q1.14, more than three times the sum invested in the corresponding period in The increase was due to a few abnormally large investments in solar companies, most notably Gothaer Versicherungen s $205 million investment in Juwi Renewable IPP GmbH. Some 103 clean energy M&A deals totalling $4.9 billion were announced in Q1.14, a slight increase on the 99 deals totalling $3.9 billion recorded in Q1.13. The most notable deals in Q1.14 were Caisse de dépôt et placement du Québec s 500 million acquisition of a 25% stake in the 630 MW London Array offshore wind farm, and Brookfield Renewable Energy Partners purchase of Bord Gáis 321 MW wind energy portfolio.

3 Contents Venture Capital and Private Equity Mergers and Acquisitions Project and Asset Finance Public Markets... 17

4 04 Venture Capital and Private Equity European Venture Capital and Private Equity Investment: Q1.12 to Q Private equity (Development capital) Venture capital - Late stage (Series D+) Venture capital - Early growth (Series A to C) Number of deals Deal value ($ billion) Number of deals Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 0 Average Quarterly VC/PE Investment Q1.12 to Q1.14 ($ million) Venture Capital (early-stage) Venture Capital (late -stage) 23.2 Private Equity (development capital) Average deal size Q1.12 to Q1.14 ($ million) Venture Capital (early-stage) 4.58 Venture Capital (late -stage) Private Equity (development capital) 40.53

5 05 Venture Capital and Private Equity Q1.14: Top 10 Venture Capital Deals Company Sector Country Deal value ($ million) Juwi Renewable IPP GmbH & Co KG Investor(s) Solar Germany Gothaer Versicherungen AG Elkem Solar AS Solar Norway Guangyu International Ltd. Intelligent Energy Ltd. Energy Storage UK 62.3 Government of Singapore Investment Corporation Pte Ltd. (GIC) AMCS Group Recycling & Waste Ireland 32.0 Highland Capital Partners LLC, Ulster Bank Diageo Venture Fund GLO AB Energy Efficiency Sweden 30.0 Foundation Asset Management AB, Nano Future Invest A/S, Teknoinvest AS, Energy Future Invest AS, Wellington Partners Venture Capital Eyefreight Green Transportation Netherlands 11.8 Global Cleantech Capital, De Hoge Dennen Capital PE BV Iceotope Research and Development Ltd. Energy Efficiency UK 10.0 Aster Capital SA, Ombu Group Yasa Motors Green Transportation UK 8.2 Undisclosed LUXeXceL Group BV Energy Efficiency Netherlands 6.8 Munich Venture Partners, Chrysalix SET, Filsa Capital BV Powervation Ltd. Energy Efficiency Ireland 5.5 Scottish Equity Partners LLP, Braemar Energy Ventures, Intel Capital Corp., VentureTech Alliance LLC, Semtech Corp.

6 06 Venture Capital and Private Equity European Private Equity Buyouts: Q1.12 to Q Deals of over $100 million Deals of under $100 million Number of deals Deal value ($ billion) Number of deals Q1.12 Q2.12 Q3.12 Q4.12 Q1.13 Q2.13 Q3.13 Q4.13 Q Average Private Equity Buyout Investment: Q1.12 to Q1.14 Average Quarterly PE Buyout Volume ($ billion) 2.3 Average Number of Deals per Quarter 31.0 Average PE Buyout transaction value ($ million) 75.4

7 07 Venture Capital and Private Equity Q1.14: Top Five Private Equity Buyouts Wind farm (630MW) - London Array, 1 Phase 1 Country: UK Investor: Caisse de dépôt et placement du Québec $1,063.0 million Sector: Wind 2 Wind farm (210MW) - Westermost Rough $399.3 million Country: UK Sector: Wind Investor: Marubeni Corp., UK Green Investment Bank 3 Wind farm (576MW) - Gwynt y Mor $366.0 million Country: UK Sector: Wind Investor: UK Green Investment Bank 4 Solar plant (40MW) - Pompogne $192.2 million Country: France Sector: Solar Investor: Capital Stage AG Wind farm (12MW) - Tallentire Hill, Wind 5 farm (10.2MW) - Meikle Carewe, Solar plants (30.4MW) - Barnstaple, Devon and Colchester, Essex, Wind farm (25.3MW) - Taurbeg Country: UK / Ireland Investor: The Renewables Infrastructure Group Ltd. $142.0 million Sector: Wind Note: This table includes investments by institutional investors

8 08 Venture Capital and Private Equity European Venture Capital Investment by Sector Solar Energy Storage Q1.13 Q4.13 Q1.14 Energy Efficiency Recycling & Waste Green Transportation 0% Deal value ($ million) European Venture Capital Investment by Country Q1.13 Germany Q4.13 Q1.14 Norway UK Ireland Sweden Deal value ($ million)

9 09 Mergers and Acquisitions European M&A Activity: Q1.12 to Q Deals of over $500 million Deals of under $500 million Number of deals Deal value ($ billion) Number of deals Q1.12 Q2.12 Q3.12 Q4.12 Q1.13 Q2.13 Q3.13 Q4.13 Q Clean Energy Pipeline calculates M&A activity based on announced transactions within each quarter. Average M&A Investment: Q1.12 to Q1.14 Average Quarterly M&A Deal Volume ($ billion) 5.8 Average number of deals per quarter Average M&A transaction value ($ million) 53.0

10 10 Mergers and Acquisitions European M&A Activity by Sector Wind Solar Q1.13 Q4.13 Hydro Q1.14 Recycling & Waste Biomass Deal value ($ billion) European M&A Activity by Country UK Ireland Germany Q1.13 Q4.13 Q1.14 France Italy 0% Deal value ($ billion)

11 11 Mergers and Acquisitions Q1.14: Top 5 European M&A Transactions Target: Wind farm (630MW) - London Array, Phase 1 1 Acquirer: Caisse de dépôt et placement du Québec Country: UK Sector: Wind $1,063.0 million Target:Wind farms (321MW) - Bord Gáis Energy portfolio 2 Acquirer: Brookfield Renewable Energy Partners LP Country: Ireland Sector: Wind $680.0 million Target: SMA Solar Technology AG 3 Acquirer: Danfoss Developement A/S Country: Germany Sector: Solar $415.5 million Target: Wind farm (210MW) - Westermost Rough 4 Acquirer: Marubeni Corp., UK Green Investment Bank Country: UK Sector: Wind $399.3 million Target: Wind farm (576MW) - Gwynt y Mor 5 Acquirer: UK Green Investment Bank Country: UK Sector: Wind $366.0 million

12 12 Project and Asset Finance European Project Finance Deal Volume: Q1.12 to Q Northern Europe Central & Eastern Europe 14 Southern Europe Western Europe 12 Deal value ($ billion) Q1.12 Q2.12 Q3.12 Q4.12 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14

13 13 Project and Asset Finance Q1.14 : European Project Finance by Sector as a Percentage of Total Deal Volume / Total Number of Deals Wind Solar Biomass Energy Efficiency Geothermal Other renewables Hydro 0% 0% 0% % of total deal value % of total numbers of deals Energy Storage 0% Percentage (%)

14 14 Project and Asset Finance European Project Finance - Top Five Countries Q1.13 Total: $7.9 billion Spain 10% Italy 10% France 10% Germany 40% UK 30% Q4.13 France 6% Italy 5% Spain 4% Total: $6.9 billion Germany 18% UK 67% Q1.14 Total: $10.8 billion France 10% Italy 7% Spain 1% Germany 48% UK 34%

15 15 Project and Asset Finance European Project Finance - Top Sectors Q1.13 Total: $10.5 billion Biomass 17% Wind Farm (On-shore) 30% Solar Plant (PV) 26% Q4.13 Wind Farm (Off-shore) 27% Total: $9.7 billion Solar Plant (PV) 17% Wind Farm (On-shore) 36% Q1.14 Biomass 23% Wind Farm (Off-shore) 24% Total: $14.1 billion Biomass 8% Solar Plant (PV) 20% Wind Farm (On-shore) 36% Wind Farm (Off-shore) 36%

16 16 Project and Asset Finance Q1.14 : Top Five European Project Finance Transactions 1 GERMANY - Wind $1,672.9 million Project Wind farm (312MW) - Borkum Riffgrund 1 Developer Equity Provider Debt Provider - DONG Energy A/S / PNE Wind AG DONG Energy A/S / KIRKBI A/S / Oticon Foundation 2 GERMANY - Wind $1,367.0 million Project Wind farm (288MW) - Amrumbank West Developer Equity Provider Debt Provider - E.ON Climate & Renewables E.ON Climate & Renewables 3 UK - Wind $1,330.0 million Project Wind farm (210MW) - Westermost Rough Developer Equity Provider Debt Provider - DONG Energy A/S DONG Energy A/S / Marubeni Corp. / UK Green Investment Bank 4 Netherlands - Wind $572.8 million Project Wind farm (195MW) - Noordoostpolder Developer Equity Provider Debt Provider NOP Agrowind NOP Agrowind European Investment Bank / KfW Bankengruppe / Rabobank 5 Finland - Biomass $354.5 million Project Biomass plant (142MW) - Naantali Developer Equity Provider Debt Provider - Turun Seudun Energiantuotanto Oy Fortum Oyj / Turun Seudun Energiantuotanto Oy

17 17 Public Markets Quarterly Breakdown - Number of Public Market Deals (Q1.12 to Q1.14) 2 Deals 4 Deals 3 Deals 4 Deals 9 Deals 9 Deals 1 Deal Quarterly Breakdown - Analysis of Percentage Contribution of Total Funds Raised by Quarter between Q1.12 and Q1.14 Q1.13 Q3.13 Q4.13 Q1.14 Q1.12 Q2.12 Q3.12 Q1.12 Q2.12 Q3.12 Q1.13 Q3.13 Q4.13 Q1.14 1% 2% 11% 20% 26% 39% 1%

18 Europe > Middle East > Asia Taylor Wessing LLP 2014 This publication is intended for general public guidance and to highlight issues. It is not intended to apply to specific circumstances or to constitute legal advice. Taylor Wessing s international offices operate as one firm but are established as distinct legal entities. For further information about our offices and the regulatory regimes that apply to them, please refer to: NB_001367_05.14