Total corporate funding in wind sector jumps a record $15.4 billion in 2015: Mercom Capital Group

Total global corporate funding raised by public companies in the wind sector shot up to $15.4 billion, compared to $11.8 billion in 2014, according to a report by Mercom Capital Group.  This includes venture capital/private equity (VC/PE), debt financing and public market financing. Global VC investments rose to $520 million in 14 deals in 2015, compared to $311 million in 15 deals in 2014. Wind downstream companies accounted for most of the VC funding with $505 million of the $520 million raised.

The top VC funded company in 2015 was ReNew Power Ventures, an independent power producer, which raised $265 million. Eren Renewable Energy, a renewable energy project developer, raised $114 million, followed by Apex Clean Energy, an independent renewable energy company, which secured $80 million in two separate deals, and UrbanWind, a wind project developer, raised $45 million.Public market financing in the wind sector was down this year with $2.8 billion in 20 deals, compared to 16 deals for $3.7 billion in 2014. There were three IPOs in 2015, including two yieldcos, raising a total of $1.3 billion, the report added.

According to the consulting firm,  the wind corporate M&A activity in 2015 accounted for 48 transactions of which only 30 were disclosed, compared to 28 transactions (12 disclosed) in 2014. Of the 48 M&A transactions, wind downstream companies accounted for 32 this year compared to 20 transactions in 2014. The top three M&A transactions this year involved wind downstream companies. The top M&A transaction in 2015 was the acquisition of Pacific Hydro by China's State Power Investment Corporation for $2 billion.

There were 154 wind project acquisitions in 2015 for nearly 30 giga watt (GW) compared to 154 transactions, for about 25 GW of wind projects, the report added. Investment funds once again led project acquisitions with 9 GW in 2015, followed by project developers with 8 GW, utilities with 7 GW and yieldcos with 5 GW of wind project acquisitions.