Content Includes: Preqin Special Report: Renewable Energy Infrastructure Fundraising October 214 Challenging capital raising environment. Fund Managers Increasing activity in renewable energy. Transactions Year-on-year increases in the number of deals. Institutional Investors Increasing numbers with an interest in renewable energy. Strategic Investors A look at the most prominent investors. alternative assets. intelligent data.
Preqin Special Report: Renewable Energy Infrastructure Download the data pack: Foreword As the need for investment in alternative sources of energy increases and public sector investment in the global renewable energy market often falls short, private investment in the industry is playing an increasingly important role. However, fundraising for unlisted renewable energy-focused infrastructure funds has remained at relatively low levels in recent years, despite an increasing number of funds reaching a fi nal close, indicating that investors are still cautious regarding placing capital in funds focusing specifically on the sector. As a result, renewable energy funds often struggle to reach their fundraising targets, with many spending a considerable length of time on the road. However, the number of renewable energy transactions completed has increased each year since 29, indicating growing investment in the industry. Wind and solar power deals account for the vast majority of completed transactions, with more niche sectors such as hydro power, geothermal power and biomass or biofuel facilities attracting less capital investment. Europe has accounted for the largest proportion of transactions historically, with the region home to a larger proportion of established assets, as well as a more established infrastructure investment framework. In terms of who is investing in renewable energy assets, deals are being undertaken not just by fund managers, but also increasingly by institutional and strategic investors placing capital directly in assets; the smaller average deal size required for investing in the industry allows a wider range of investors to access such assets than is the case in more traditional infrastructure investment. Preqin Special Report: Renewable Energy Infrastructure takes a detailed look at the evolution of the renewable energy industry in recent years, including fundraising analysis and an insight into recent investments by fund managers, institutional and strategic investors. This report supplements the information available on Preqin s Infrastructure Online service, which contains details on over 45 renewable energy funds, 3, completed renewable energy transactions and 7 investors in renewable energy assets, including fund managers and institutional and strategic investors. We hope you fi nd this report useful, and welcome any feedback you may have. For more information, please visit www.preqin.com or contact info@preqin.com. Contents Fundraising for Renewable Energy Funds p3. Renewable Energy Transactions p5. Fund Managers Investing in Renewables p7. Institutional Investors Investing in Renewables p8. Strategic Investors Investing in Renewable Energy p9. Renewable Energy Transactions in 214 By Region p1. All rights reserved. The entire contents of Preqin Special Report: Renewable Energy Infrastructure, October 214 are the Copyright of Preqin Ltd. No part of this publication or any information contained in it may be copied, transmitted by any electronic means, or stored in any electronic or other data storage medium, or printed or published in any document, report or publication, without the express prior written approval of Preqin Ltd. The information presented in Preqin Special Report: Renewable Energy Infrastructure, October 214 is for information purposes only and does not constitute and should not be construed as a solicitation or other offer, or recommendation to acquire or dispose of any investment or to engage in any other transaction, or as advice of any nature whatsoever. If the reader seeks advice rather than information then he should seek an independent fi nancial advisor and hereby agrees that he will not hold Preqin Ltd. responsible in law or equity for any decisions of whatever nature the reader makes or refrains from making following its use of Preqin Special Report: Renewable Energy Infrastructure, October 214. While reasonable efforts have been made to obtain information from sources that are believed to be accurate, and to confi rm the accuracy of such information wherever possible, Preqin Ltd. does not make any representation or warranty that the information or opinions contained in Preqin Special Report: Renewable Energy Infrastructure, October 214 are accurate, reliable, up-to-date or complete. Although every reasonable effort has been made to ensure the accuracy of this publication Preqin Ltd. does not accept any responsibility for any errors or omissions within Preqin Special Report: Renewable Energy Infrastructure, October 214 or for any expense or other loss alleged to have arisen in any way with a reader s use of this publication. 2
Download the data pack: Preqin Special Report: Renewable Energy Infrastructure Fundraising for Renewable Energy Funds The global transition from reliance on traditional to alternative energy sources is an important political and economic issue, and one that has a signifi cant impact on the unlisted infrastructure fund universe. In order to stem the effects of climate change, governments around the world have initiated plans to increase green energy investment. However, with public funding often struggling to cope with the high levels of capital needed, a growing number of private renewable energy-focused infrastructure funds have been launched in recent years. Historical Fundraising Fundraising for renewable energy funds has remained at a relatively low level in recent years, with the aggregate capital raised by these funds increasing from $1.6bn for funds closed in 21 to $2.6bn in 213, as shown in Fig. 1. However, the number of renewable energy funds reaching a fi nal close more than doubled over this time period, from nine to 21, demonstrating that although more funds are able to successfully reach a fi nal close, they are often attracting less capital from investors. In 214 so far, seven renewable energy-focused funds have reached a fi nal close, raising an aggregate $1.4bn. Fig. 2 further demonstrates that fund managers raising renewable energy funds often fi nd it particularly challenging to attract suffi cient capital to reach their targets, with the average proportion of target size achieved for such funds remaining below 1 since 28. In 214 so far, renewable energy-focused funds have, on average, achieved 87% of their targets. As the industry remains relatively new, the ability for renewable energy investments to produce demonstrable returns is as yet unproven, meaning that many investors remain cautious of placing sizeable amounts of capital in funds focusing on the industry. Additionally, many managers have been forced to spend a long time marketing renewable energy funds, with funds taking almost two years on average to reach a fi nal close, and many still closing short of their fundraising targets. However, this is not Fig. 2: Average Proportion of Target Size Achieved by Renewable Energy-Focused Unlisted Infrastructure Funds, 28-214 (As at 6 October 214) Fig. 1: Annual Fundraising by Renewable Energy-Focused Unlisted Infrastructure Funds, 26-214 (As at 6 October 214) 25 2 15 1 5 6 1. 1 14 1.8 2.3 6 9 1.7 1.6 15 the case for all managers, with Resonance British Wind Energy Fund, managed by Resonance Asset Management, reaching a fi nal close of 1mn just six months after launching in 213, exceeding its target size of 6mn. Amsterdam Energy & Climate Energy Fund, managed by Ewic, also closed in 213 after just six months on the road, reaching its target size of 45mn. Regionally, Europe has accounted for the largest proportion of aggregate capital raised by renewable energy infrastructure funds closed since 211, with 88% of capital raised by these funds in 214 so far focusing on investments in the region, as shown in Fig. 3. In comparison to other regions, Europe has a relatively developed market for renewable energy, with more established and operational assets than available elsewhere, therefore attracting the bulk of renewable energy investment. However, North America has accounted for a growing proportion of renewable energy capital, increasing from just 6% of capital 2.8 26 27 28 29 21 211 212 213 214 Year of Final Close 17 1.9 21 2.6 7 1.4 No. of Funds Closed Aggregate Capital Raised ($bn) Fig. 3: Breakdown of Renewable Energy-Focused Unlisted Infrastructure Fundraising by Primary Geographic Focus, 211-214 (As at 6 October 214) Average Proportion of Target Size Achieved 1 9 8 2 97% 94% 89% 85% 87% 77% 72% 28 29 21 211 212 213 214 Year of Final Close Proportion of Aggregate Capital Raised 1 9 8 2 6% 2% 28% 36% North America 88% Europe 38% Asia Rest of World 18% 16% 6% 2% 6% 11% 5% 8% 211 212 213 214 Year of Final Close 3
Preqin Special Report: Renewable Energy Infrastructure Download the data pack: raised by funds focusing on the region that closed in 211 to 36% in 213, although for funds closed in 214 so far this has declined to just 2% of capital. Renewable Energy Funds in Market The number of funds in market targeting renewable energy investments has risen in recent years as both fund managers and investors become more knowledgeable in the area and the strategy becomes more widely targeted, increasing from 21 funds targeting a total of $8bn in capital commitments in October 21 to 44 funds targeting an aggregate $14bn in October 214, as shown in Fig. 4. Fig. 5 reveals that the largest number of funds currently on the road are targeting European renewable investments, with 2 funds seeking an aggregate $7.4bn, demonstrating the continued prominence of the region for renewable energy investment. In comparison, seven funds are each targeting North America- and Asia-focused investments, and are seeking an aggregate $2.5bn and $2.7bn respectively, while 1 funds are focusing on countries outside of these three regions, and are looking to raise $1.7bn in aggregate capital commitments. The largest renewable energy fund currently in market is Terra Firma Infrastructure Fund for Global Renewable Energy, which is targeting a total of $2bn in capital commitments to invest in high quality renewable energy infrastructure assets in North America, Western Europe and OECD countries. Preqin s Infrastructure Online provides detailed information on 879 infrastructure funds closed historically, including 457 renewable energy-focused funds. Comprehensive profi les include capital raised, interim closes, strategy and geographic preferences and much more. For more information, please visit: www.preqin.com/infrastructure Fig. 4: Renewable Energy-Focused Unlisted Infrastructure Funds in Market over Time, October 21 - October 214 (As at 6 October 214) Fig. 5: Renewable Energy-Focused Unlisted Infrastructure Funds in Market by Primary Geographic Focus (As at 6 October 214) 5 45 4 35 3 35 34 45 44 No. of Funds Raising 25 2 15 2 No. of Funds Raising 25 2 15 1 5 21 8 11 9 14 14 Oct-1 Oct-11 Oct-12 Oct-13 Oct-14 Aggregate Capital Targeted ($bn) 1 5 7 2.5 North America 7.4 7 2.7 1 1.7 Europe Asia Rest of World Primary Geographic Focus Aggregate Target Capital ($bn) Fig. 6: Top Five Renewable Energy-Focused Unlisted Infrastructure Funds Closed, 212-214 (As at 6 October 214) Fund Firm Final Size (mn) Final Close Date Focus Clean Energy Fund Europe II Glennmont Partners 5 EUR Sep-14 Europe BlackRock NTR Renewable Power Fund BlackRock 611 USD Nov-13 North America, West Europe Zouk Renewable Energy & Environmental Infrastructure Fund II Zouk Capital 22 EUR Sep-14 Europe Capital Dynamics US Solar Energy Capital Dynamics 282 USD Jun-12 US Quercus Renewable Energy Quercus Assets Selection 2 EUR Mar-12 Europe Fig. 7: Top Five Renewable Energy-Focused Unlisted Infrastructure Funds in Market (As at 6 October 214) Fund Firm Target Size (mn) Focus Terra Firma Infrastructure Fund for Global Renewable Energy Terra Firma Capital Partners 2, USD North America, West Europe, OECD CP3 Asia Asian Development Bank 75 USD Asia Capital Dynamics Clean Energy and Infrastructure Fund Capital Dynamics 75 USD North America, West Europe, Australasia Pegasus Renewable Energy Infrastructure Debt Fund Pegasus Capital Advisors 75 USD North America Japan Solar Fund Equis Funds Group 75 USD Japan 4
Download the data pack: Preqin Special Report: Renewable Energy Infrastructure Renewable Energy Transactions With the growth of the global renewable energy industry, the number of deals completed focusing on this industry has increased from 244 in 29 to 357 in 213. The reported aggregate deal value of $28bn for deals completed in 213 is also higher than the $2bn reported in 29, as shown in Fig. 8. Preqin also produces an estimated deal value, calculated using the total reported value of all deals where this is known, plus the average deal value for transactions where a deal size has not been disclosed. For 213 this value is $95bn, compared to a peak of $132bn for deals completed in 212. In 214 so far, 213 renewable energy transactions have been completed at an estimated aggregate deal value of $63bn, although this is likely to rise as more information becomes available. These transactions are undertaken by a range of fi rms, including fund managers, institutional investors and trade investors; each of these are examined in detail later in this report. In terms of deal size, smaller value renewable energy transactions are increasingly prominent, with the proportion of deals valued at less than $1mn growing from of completed transactions in 212 to 49% in 214 to date, as displayed in Fig. 9. Large deals sized at $5mn or more have previously represented only a small proportion of the market, with only 17% of completed renewable energy deals in 214 valued at this size. Solar and wind power have historically accounted for the vast majority of renewable energy deals, with Fig. 1 demonstrating that in 214 so far, 38% and 46% of deals have been solar or wind power transactions respectively, with hydro power accounting for. As demonstrated in Fig. 13, all of the top 1 deals completed in 214 to date have been in wind, solar or hydro power industries. Regionally, Europe has accounted for the largest proportion of renewable energy deals since 211, representing of completed transactions in 214, as shown in Fig. 11. In comparison, 31% of renewable energy transactions in 214 so far are focused on assets in North America, with in Asia and 8% elsewhere. Fig. 8: Number and Aggregate Value of Renewable Energy Infrastructure Deals, 28-214 (As at 6 October 214) 4 35 3 25 2 15 1 5 326 244 284 324 33 Due to a relative lack of established, operational assets in the renewable energy sector, the majority of transactions are in greenfi eld assets, representing 55% of deals completed since 28 (Fig. 12), with eight of the top 1 renewable energy deals completed in 214 so far undertaken in greenfi eld assets. Fig. 13 reveals that the largest renewable energy deal completed in 214 so far is the approval by the UK government of the Rampion Offshore Wind Farm, owned by E.ON. The installation features up to 175 turbines, each with a capacity of 3-7MWs, to be installed about 13km to 2km away from the Sussex coast in the English Channel. Onshore construction is due to commence in 215, with the project planned to be completed in phases over the following four years. The total investment into the project was estimated at 2bn. 357 213 28 29 21 211 212 213 214 No. of Deals Reported Aggregate Deal Value ($bn) Estimated Aggregate Deal Value ($bn) Fig. 9: Breakdown of Renewable Energy Infrastructure Deals by Deal Size, Deals Completed 212-214 (As at 6 October 214) Fig. 1: Breakdown of Renewable Energy Infrastructure Deals by Industry, 211-214 (As at 6 October 214) Proportion of Deals 1 9 8 2 11% 9% 7% 7% 8% 37% 34% 48% 49% 212 213 214 $1bn or More $5-999mn $1-499mn Less than $1mn Proportion of Deals 1 9 8 2 5% 3% 6% 2% 1% 13% 37% 31% 46% 49% 27% 53% 3% 1% 38% 46% 2% 2% 3% 2% 211 212 213 214 Biomass/Biofuel Facility Geothermal Power Hydro Power Solar Power Wind Power Diversified Renewable Energy 5
Preqin Special Report: Renewable Energy Infrastructure Download the data pack: The second largest renewable energy transaction completed in 214 so far is the $1.5bn acquisition of Mirfa IWPP by GDF Suez and ADWEA. Mirfa IWPP is a hydro power project comprising a total power capacity of 1,6MW and a seawater desalination capacity of 52.5 MIGD (238,665 m3/day), located 12 km from Abu Dhabi. Fig. 11: Breakdown of Renewable Energy Deals by Region, 211-214 (As at 6 October 214) Fig. 12: Breakdown of Renewable Energy Deals by Project Stage, Deals Completed 28-214 (As at 6 October 214) 1 Proportion of Deals 9 8 2 29% 55% 45% 6% 7% 9% 12% 36% 33% 31% 8% 8% 8% 211 212 213 214 North America Europe Asia Rest of World 37% 8% 55% Greenfield Secondary Stage Brownfield Fig. 13: Top 1 Renewable Energy Deals Completed in 214 (As at 6 October 214) Asset Transaction Date Industry Country Total Deal Size (mn) Investors (Firms) Rampion Offshore Wind Farm Project Jul-14 Wind Power UK 2, GBP E.ON Mirfa IWPP Jul-14 Hydro Power United Arab Emirates 1,5 USD Abu Dhabi Water & Electricity Authority, GDF SUEZ Amrumbank West Wind Farm Jan-14 Wind Power Germany 1, EUR E.ON London Array Wind Farm Feb-14 Wind Power UK 644 GBP CDP Capital - Private Equity Group Cerro Dominador Solar Power Plant Jan-14 Solar Power Chile 1, USD Abengoa Xina Solar Power Plant Jun-14 Solar Power South Africa 98 USD Abengoa, Industrial Development Corporation, Public Investment Corporation Lake Turkana Wind Power Project Mar-14 Wind Power Kenya 87 USD Aldwych International, Finnfund, IFU, KP&P Africa, Netherlands Development Finance Company (FMO), Vestas Wind Systems Dudgeon Offshore Wind Farm Sep-14 Wind Power UK 525 GBP Masdar Ashelim Thermo-Solar Plant Jun-14 Solar Power Israel 2,9 ILS Gode Wind Farm II Jul-14 Wind Power Germany 6 EUR Alstom, BrightSource Energy, NOY Infrastructure Industry Pension Insurance, Lærernes Pension, Medical Doctors' Pension Fund, Pensionskassernes Administration Preqin s Infrastructure Online features detailed information on more than 1,3 transactions completed historically, including 3, in the renewable energy sector. Profi les include current ownership, deal size, location and industry, fi nancial information and much more. For more information, or to arrange a demonstration, please visit: www.preqin.com/infrastructure 6
Download the data pack: Preqin Special Report: Renewable Energy Infrastructure Fund Managers Investing in Renewables Fund manager activity in renewable energy investment has increased since 29, with managers either raising dedicated renewable energy-focused funds or including renewable energy investments within their fund focus. As shown in Fig. 14, the number of renewable energy transactions involving fund managers has increased from 98 completed deals in 28 to 191 in 213. Over this time, the estimated aggregate deal value has increased from $18bn to $44bn, demonstrating the overall growth in the industry. In 214 so far, 94 renewable energy deals have been completed by infrastructure fund managers at an estimated total deal value of $24bn, although this value is likely to increase as further information becomes available. In terms of region, fund managers are increasingly investing in Europe, with the region increasing from accounting for 39% of renewable energy deals in 212 to 67% in 214 so far. The proportion of renewable energy deals completed by fund managers in North America has correspondingly declined from 41% to 22% over the same time period. Wind and solar power have historically accounted for the vast majority of renewable energy transactions undertaken by fund managers, as shown in Fig. 15. In 214 to date, these two industries have accounted for 36% and 49% of completed Fig. 14: Number and Aggregate Value of Renewable Energy Infrastructure Deals Completed by Fund Managers, 28-214 (As at 6 October 214) deals respectively, with hydro power representing of deals and other industries, such as geothermal, biomass/biofuel and diversifi ed renewable energy investments, accounting for the remainder. The top fi ve fund managers by the number of renewable energy transactions they have completed from 212 to 214 so far are shown in Fig. 16. Canada-based Fiera Axium Infrastructure is at the top of the list, having completed 38 renewable energy deals in this timeframe, with UK-based InfraRed Capital Partners coming second with 25 completed deals. The largest renewable energy deal completed by a fund manager in 214 so far is the acquisition of Israel-based Ashelim Thermo-Solar Plant by the NOY Infrastructure and Energy Investment Fund, managed by NOY Infrastructure, alongside BrightSource Energy and Alstom. The project cost was ILS 2.9bn (approximately $85mn), fi nanced with ILS 2.35bn ($687mn) in debt. The solar plant has a generating capacity of 121 MW, with an expected completion date of 217. Fig. 15: Breakdown of Renewable Energy Infrastructure Deals Completed by Fund Managers by Industry, 211-214 (As at 6 October 214) 25 1 9 3% 1% 1% 7% 7% 1% 8% 1% Biomass/Biofuel Facility 2 15 1 5 98 99 121 156 135 191 94 No. of Deals Reported Aggregate Deal Size ($bn) Estimated Aggregate Deal Size ($bn) Proportion of Deals 8 2 36% 35% 49% 44% 48% 36% Geothermal Power Hydro Power Solar Power Wind Power Diversified Renewable Energy 28 29 21 211 212 213 214 4% 4% 2% 4% 211 212 213 214 Fig. 16: Top Five Fund Managers by Number of Renewable Energy-Focused Infrastructure Deals Completed in 212-214 (As at 6 October 214) Firm No. of Completed Deals Sample Transactions Fiera Axium Infrastructure 38 Canada Oregon Wheat Field Wind Farm, $96.53mn (Sep-13), Vents Du Kempt Wind Farm, CAD 34mn (May-12) InfraRed Capital Partners 25 UK Crook Hill Wind Farm, 75mn (Jul-14), Penare Farm Solar Park (Aug-14) Greencoat Capital 16 UK Rhyl Flats Wind Farm, 115mn (Mar-13), Maerdy Wind Farm, 52.9mn (Jun-14) Infi gen Energy 14 Australia Cherry Tree Wind Farm, AUD 2 (Nov-13), Woakwine Wind Farm, AUD 1, (Jun-12) LS Power Group 12 US Lake Lynn Hydro Plant (Sep-13), Warren Hydro Plant (Sep-13) 7
Preqin Special Report: Renewable Energy Infrastructure Download the data pack: Institutional Investors Investing in Renewables Recent years have seen growing numbers of institutional investors, such as pension funds, insurance companies and endowments, investing directly in renewable energy assets. Many investors choose to access infrastructure assets directly to avoid paying fund manager fees, although this route to market is typically reserved for larger institutions with the resources and expertise to manage a portfolio of assets. As shown in Fig. 17, the number of renewable energy deals completed by institutional investors increased from 43 in 28 to 99 in 212, with the estimated aggregate deal value also increasing from $13bn to $38bn. 213 saw the number of completed deals decline to 79, with just 41 completed in 214 so far; however, these values are likely to increase as further information becomes available. Wind power has accounted for the largest proportion of direct renewable energy transactions completed by institutional investors, representing 61% of deals in 213 and 51% of deals in 214 so far, as shown in Fig. 18. Solar power transactions are the next most prominent, representing 22% and 34% of deals in 213 and 214 respectively. In 214 so far, hydro power has accounted for of deals, increasing from 6% in 213, indicating a renewed interest in this area among institutional investors. Fig. 17: Number and Aggregate Value of Renewable Energy Infrastructure Deals Completed by Institutional Investors, 28-214 (As at 6 October 214) A notable deal in 214 to date involving an institutional investor investing directly is the sale of DONG Energy s interest in London Array Wind Farm to asset manager Caisse de dépôt et placement du Québec (CDPQ) for a total consideration amount of 644mn ( 781mn). The project is a 63MW wind power facility located in the outer Thames Estuary in the UK and covers an area of around 245km 2. It includes 175 wind turbines and an onshore substation at Cleve Hill, Kent. Five notable institutional investors in renewable energy assets are shown in Fig. 19. Germany-based asset manager MEAG Munich Ergo Asset Management and Norway-based government agency Norfund have each undertaken seven renewable energy transactions since 212. Preqin s Infrastructure Online features in-depth profiles for over 2,3 institutional investors in infrastructure, including 1,85 with an interest in renewable energy. For more information, please visit: www.preqin.com/infrastructure Fig. 18: Breakdown of Renewable Energy Infrastructure Deals Completed by Institutional Investors by Industry, 211-214 (As at 6 October 214) 12 1 8 6 4 2 43 51 48 59 28 29 21 211 212 213 214 99 79 41 No. of Deals Reported Aggregate Deal Size ($bn) Estimated Aggregate Deal Size ($bn) Proportion of Deals 1 9 8 2 2% 1% 3% 3% 5% 1% 14% 6% 36% 47% 32% 51% 22% 61% 34% 51% 2% 3% 8% 211 212 213 214 Biomass/Biofuel Facility Geothermal Power Hydro Power Solar Power Wind Power Diversified Renewable Energy Fig. 19: Notable Institutional Investors Involved in Renewable Energy-Focused Infrastructure Deals Completed in 212-214 (As at 6 October 214) Firm MEAG Munich Ergo Asset Management No. of Completed Deals Norfund 7 Norway Netherlands Development Finance Company (FMO) Sample Transactions 7 Germany France Wind Farm Portfolio, 35mn (Jan-13), Asen Wind Farm (May-13) 5 Netherlands South Africa Solar Projects - 115MW, 3mn (May-13), Kinangop Wind Farm, $15mn (Dec-13) Lake Turkana Wind Power Project, $87mn (Mar-14), Salkhit Wind Farm (Apr-12) Public Investment Corporation 5 South Africa Xina Solar Power Plant, $98mn (Jun-14), Boshof Solar Park, ZAR 2.4bn (Nov-13) Swiss Life 4 Switzerland Sixpenny Wood Wind Farm, (Aug-14), Yelvertoft Wind Farm (Aug-14) 8
Download the data pack: Preqin Special Report: Renewable Energy Infrastructure Strategic Investors Investing in Renewable Energy Alongside fund managers and institutional investors, many other strategic or trade investors seek to invest directly in renewable energy assets. However, unlike fund managers and institutional investors, the number of deals completed by these investors declined from 28 to 29 from 22 to 122 respectively, showing small signs of recovery since and reaching a peak of 166 renewable energy deals completed in 212, as shown in Fig. 2. However, the estimated aggregate deal value increased from $52bn in 28 to $74bn in 212, indicating that although fewer deals were being completed, they were of a larger value. In common with institutional investors, wind power deals make up the largest proportion of renewable energy transactions completed by strategic investors since 211, as shown in Fig. 21. However, the proportion has declined from accounting for 61% of deals in 211 to 49% in 214 so far. At the same time, solar power deals have increased from accounting for 24% of deals to over the same time period. The top fi ve strategic investors by the number of renewable energy transactions they have been involved in from 212 to 214 so far are shown in Fig. 22. At the top of the list is Francebased EDF Group, with a signifi cant 61 such deals completed, Fig. 2: Number and Aggregate Value of Renewable Energy Infrastructure Deals Completed by Strategic Investors, 28-214 (As at 6 October 214) including the acquisition of Canada-based Merritt Green Biomass Power Plant in July 214, valued at CAD 235mn. As shown on page 5, the largest deal completed in 214 so far is the approval of the Rampion Offshore Wind Farm, which is owned by strategic investor E.ON. Other notable deals by strategic investors in 214 include the acquisition of a 1 equity stake in the Cerro Dominador Solar Power Plant by Abengoa. The asset is a 11 MW concentrated solar power (CSP) station located in Chile s Atacama Desert. The solar facility has an expected completion date of 217. The Inter- American Development Bank, the Clean Technology Fund, KfW Banking Group, the European Union and the Canadian Fund arranged $5mn in fi nancing for the $1bn project. Additional funding included a construction loan provided by BTG Pactual and a grant from the Chilean Ministry of Energy. Use Preqin s Infrastructure Online to identify over 2, industry players actively investing in infrastructure assets. View full portfolios, transaction history and direct contact details for all fi rms. For more information, please visit: www.preqin.com/infrastructure Fig. 21: Breakdown of Renewable Energy Infrastructure Deals Completed by Strategic Investors by Industry, 211-214 (As at 6 October 214) 25 2 15 1 5 22 122 134 136 166 15 89 No. of Deals Reported Aggregate Deal Size ($bn) Estimated Aggregate Deal Size ($bn) Proportion of Deals 1 9 8 2 4% 3% 1% 8% 4% 2% 16% 7% 13% 24% 61% 23% 29% 56% 54% 49% Biomass/Biofuel Facility Geothermal Power Hydro Power Solar Power Wind Power Diversified Renewable Energy 28 29 21 211 212 213 214 1% 1% 2% 211 212 213 214 Fig. 22: Top Five Strategic Investors by Number of Renewable Energy-Focused Infrastructure Deals Completed in 212-214 (As at 6 October 214) Firm No. of Completed Deals Sample Transactions EDF Group 61 France Merritt Green Biomass Power Plant, CAD 235mn (Jul-14), Natchtigal Falls Hydroelectric Plant, $814mn (Nov-13) E.ON 35 Germany Rampion Offshore Wind Farm, 2bn (Jul-14), Amrumbank West Wind Farm, 1bn (Jan-14) Duke Energy 18 US Sunset Reservoir Solar Park (Aug-14), Wildwood Solar I (Mar-14) DONG Energy 14 Denmark Gode Wind Farm I, 1.247bn (Nov-13), Westermost Rough Offshore Wind Farm, 8mn (Jan-13) RWE Group 11 Germany Zuidwester Wind Farm, 15mn (Jan-14), Greater Gabbard Wind Farm, 38mn (Oct-12) 9
Preqin Special Report: Renewable Energy Infrastructure Download the data pack: Renewable Energy Transactions in 214 By Region Fig. 23: Notable Infrastructure Deals Completed in North American Renewable Energy Assets, 214 (As at 6 October 214) Asset Transaction Date Industry Total Deal Size (mn) Investors (Firms) Acciona Energía International Jun-14 Renewable Energy US 417 EUR Kohlberg Kravis Roberts Oakfi eld Wind Farm May-14 Wind Power US 369 USD First Wind Sierra Juárez I Wind Farm Jun-14 Wind Power Mexico 3 USD InterGen, Sempra Energy Safe Harbor Hydroelectric Power Plant Feb-14 Hydro Power US 289 USD Brookfi eld Asset Management Origin Wind Farm Jul-14 Wind Power US 25 USD Enel, J.P. Morgan Fig. 24: Notable Infrastructure Deals Completed in European Renewable Energy Assets, 214 (As at 6 October 214) Asset Transaction Date Industry Total Deal Size (mn) Investors (Firms) Rampion Offshore Wind Farm Jul-14 Wind Power UK 2, GBP E.ON Amrumbank West Wind Farm Jan-14 Wind Power Germany 1, EUR E.ON London Array Wind Farm Feb-14 Wind Power UK 644 GBP CDP Capital - Private Equity Group Dudgeon Offshore Wind Farm Sep-14 Wind Power UK 525 GBP Masdar Gode Wind Farm II Jul-14 Wind Power Germany 6 EUR Industry Pension Insurance, Lærernes Pension, Medical Doctors' Pension Fund, Pensionskassernes Administration Fig. 25: Notable Infrastructure Deals Completed in Asian Renewable Energy Assets, 214 (As at 6 October 214) Asset Transaction Date Industry Total Deal Size (mn) JinkoSolar Jul-14 Solar Power China 225 USD Investors (Firms) China Development Bank Capital, Macquarie Infrastructure and Real Assets (MIRA), New Horizon Capital Sindh Wind Farm - 5MW Apr-14 Wind Power Pakistan 132 USD Eleqtra, International Finance Corporation (IFC), Metro Power Company Kabeli A Hydroelectric Plant May-14 Hydro Power Nepal 13 USD Eleqtra Chhattisgarh Solar Power Plants Jun-14 Solar Power India 4 USD EDF Group IDE Mini-Hydro Portfolio - 5MW Jul-14 Hydro Power Indonesia 23 USD Armstrong Asset Management Fig. 26: Notable Rest of World Renewable Energy-Focused Transactions in 214 (As at 6 October 214) Asset Transaction Date Industry Mirfa IWPP Jul-14 Hydro Power Cerro Dominador Solar Power Plant United Arab Emirates Total Deal Size (mn) 1,5 USD Investors (Firms) Abu Dhabi Water & Electricity Authority, GDF SUEZ Jan-14 Solar Power Chile 1, USD Abengoa Xina Solar Power Plant Jun-14 Solar Power South Africa 98 USD Lake Turkana Wind Power Project Mar-14 Wind Power Kenya 87 USD KaXu Solar Power Plant May-14 Solar Power South Africa 75 ZAR Abengoa, Industrial Development Corporation, Public Investment Corporation Aldwych International, Finnfund, IFU, KP&P Africa, Netherlands Development Finance Company (FMO), Vestas Wind Systems Abengoa, Industrial Development Corporation 1
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Preqin Special Report: Renewable Energy Infrastructure October 214 Preqin: Global Data and Intelligence With global coverage and detailed information on all aspects of the infrastructure asset class, Preqin s industry-leading Infrastructure Online service keeps you up-to-date on all the latest developments in the infrastructure universe. Examine infrastructure investment trends Search detailed information on over 1,7 infrastructure transactions and bids historically, including buyers and sellers, equity invested, debt provided and the percentage stake acquired. Identify key geographical regions and sectors that are attracting infrastructure investment. Track infrastructure assets Analyze ownership information and past transaction history for more than 6, infrastructure assets across the globe, including asset location, project stage and industry. Find firms investing in infrastructure Search for fi rms actively targeting infrastructure projects and assets, with detailed profi les on fund managers, institutional investors and trade buyers from around the world, including background, key contacts and past deal activity. Identify service providers Track over 75 debt providers, law fi rms, fi nancial advisors and other service providers working on infrastructure transactions. View service providers working on specifi c deals. Source new investors for funds, co-investments and separate accounts Find the most relevant investors, with access to detailed profi les for over 2,3 institutional investors actively investing in unlisted infrastructure, including insurance companies, pension funds, family offi ces, foundations, wealth managers, endowments, banks and more. Benchmark performance Identify which fund managers have the best track records with performance benchmarks for infrastructure funds and view performance details for over 18 individual named funds. Find out how Preqin s range of infrastructure products and services can help you: www.preqin.com/infrastructure If you want any further information, or would like to request a demo of our products, please contact us: New York: One Grand Central Place 6 E 42nd Street Suite 63 New York NY 1165 Tel: +1 212 35 1 Fax: +1 44 445 9595 London: 3rd Floor Vintners Place 68 Upper Thames Street London EC4V 3BJ Tel: +44 ()2 327 2 Fax: +44 ()87 33 5892 Singapore: One Finlayson Green #11-2 Singapore 49246 Tel: +65 635 22 Fax: +65 6491 5365 San Francisco: 17 Montgomery Street Suite 134 San Francisco CA 94111 Tel: +1 415 835 9455 Fax: +1 44 445 9595 Email: info@preqin.com Web: www.preqin.com