Fundraising
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.
October 2014
Foreword
All rights reserved. The entire contents of Preqin Special Report: Renewable Energy Infrastructure, October 2014 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 2014 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 2014.
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 2014 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 2014 or for any expense or other loss alleged to have arisen in any way with a reader’s use of this publication.
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 specifi cally 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 2009, 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 450 renewable energy funds, 3,000 completed renewable energy
transactions and 700 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
.
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 2014 By Region
p10.
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 2010 to $2.6bn in 2013, 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 2014 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 100% since 2008. In 2014 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
the case for all managers, with Resonance British Wind Energy Fund, managed by Resonance Asset Management, reaching a fi nal close of £100mn just six months after launching in 2013, exceeding its target size of £60mn. Amsterdam Energy & Climate Energy Fund, managed by Ewic, also closed in 2013 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 2011, with 88% of capital raised by these funds in 2014 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
Fundraising for Renewable Energy Funds
6 10 14 6 9 15 17 21 7 1.0 1.8 2.3 1.7 1.6 2.8 1.9 2.6 1.4 0 5 10 15 20 25 2006 2007 2008 2009 2010 2011 2012 2013 2014 YTD No. of Funds Closed Aggregate Capital Raised ($bn)
Fig. 1: Annual Fundraising by Renewable Energy-Focused Unlisted Infrastructure Funds, 2006 - 2014 YTD (As at 6 October 2014)
Source: Preqin Infrastructure Online
Year of Final Close
97% 94% 77% 89% 72% 85% 87% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2008 2009 2010 2011 2012 2013 2014 YTD
Fig. 2: Average Proportion of Target Size Achieved by Renewable Energy-Focused Unlisted Infrastructure Funds, 2008 - 2014 YTD (As at 6 October 2014)
Source: Preqin Infrastructure Online
Year of Final Close
A
verage Proportion of T
a
rget Size Achieved
6% 5% 11% 8% 18% 6% 16% 2% 70% 60% 38% 88% 6% 28% 36% 2% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2011 2012 2013 2014 YTD North America Europe Asia Rest of World
Fig. 3: Breakdown of Renewable Energy-Focused Unlisted Infrastructure Fundraising by Primary Geographic Focus, 2011 - 2014 YTD (As at 6 October 2014)
Source: Preqin Infrastructure Online
Year of Final Close
raised by funds focusing on the region that closed in 2011 to 36% in 2013, although for funds closed in 2014 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 2010 to 44 funds targeting an aggregate $14bn in October 2014, as shown in Fig. 4. Fig. 5 reveals that the largest number of funds currently on the road are targeting European renewable investments, with 20 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 10 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 $2bn in capital commitments to invest in high quality renewable energy infrastructure assets in North America, Western Europe and OECD countries.
21 35 34 45 44 8 11 9 14 14 0 5 10 15 20 25 30 35 40 45 50
Oct-10 Oct-11 Oct-12 Oct-13 Oct-14
No. of Funds Raising
Aggregate Capital Targeted ($bn)
Fig. 4: Renewable Energy-Focused Unlisted Infrastructure Funds in Market over Time, October 2010 - October 2014 (As at 6 October 2014)
Source: Preqin Infrastructure Online
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 7 20 7 10 2.5 7.4 2.7 1.7 0 5 10 15 20 25 North America
Europe Asia Rest of World
No. of Funds Raising
Aggregate Target Capital ($bn)
Fig. 5: Renewable Energy-Focused Unlisted Infrastructure Funds in Market by Primary Geographic Focus (As at 6 October 2014)
Source: Preqin Infrastructure Online
Primary Geographic Focus
Fig. 6: Top Five Renewable Energy-Focused Unlisted Infrastructure Funds Closed, 2012 - 2014 YTD (As at 6 October 2014)
Fund Firm Final Size (mn) Final Close Date Location Focus
Clean Energy Fund Europe II Glennmont Partners 500 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 220 EUR Sep-14 Europe Capital Dynamics US Solar Energy Capital Dynamics 282 USD Jun-12 US Quercus Renewable Energy Quercus Assets Selection 200 EUR Mar-12 Europe
Source: Preqin Infrastructure Online
Fig. 7: Top Five Renewable Energy-Focused Unlisted Infrastructure Funds in Market (As at 6 October 2014)
Fund Firm Target Size (mn) Location Focus
Terra Firma Infrastructure Fund for Global Renewable Energy Terra Firma Capital Partners 2,000 USD North America, West Europe, OECD CP3 Asia Asian Development Bank 750 USD Asia Capital Dynamics Clean Energy and Infrastructure Fund Capital Dynamics 750 USD North America, West
Europe, Australasia Pegasus Renewable Energy Infrastructure Debt Fund Pegasus Capital Advisors 750 USD North America Japan Solar Fund Equis Funds Group 750 USD Japan
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 2009 to 357 in 2013. The reported aggregate deal value of $28bn for deals completed in 2013 is also higher than the $20bn reported in 2009, 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 2013 this value is $95bn, compared to a peak of $132bn for deals completed in 2012. In 2014 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 $100mn growing from 30% of completed transactions in 2012 to 49% in 2014 to date, as displayed in Fig. 9. Large deals sized at $500mn or more have previously represented only a small proportion of the market, with only 17% of completed renewable energy deals in 2014 valued at this size.
Solar and wind power have historically accounted for the vast majority of renewable energy deals, with Fig. 10 demonstrating that in 2014 so far, 38% and 46% of deals have been solar or wind power transactions respectively, with hydro power accounting for 10%. As demonstrated in Fig. 13, all of the top 10 deals completed in 2014 to date have been in wind, solar or hydro power industries. Regionally, Europe has accounted for the largest proportion of renewable energy deals since 2011, representing 50% of completed transactions in 2014, as shown in Fig. 11. In comparison, 31% of renewable energy transactions in 2014 so far are focused on assets in North America, with 10% in Asia and 8% elsewhere.
Due to a relative lack of established, operational assets in the renewable energy sector, the majority of transactions are in greenfi eld assets, representing 55% of deals completed since 2008 (Fig. 12), with eight of the top 10 renewable energy deals completed in 2014 so far undertaken in greenfi eld assets. Fig. 13 reveals that the largest renewable energy deal completed in 2014 so far is the approval by the UK government of the Rampion Offshore Wind Farm, owned by E.ON. The installation features up to 175 turbines, each with a capacity of 3-7MWs, to be installed about 13km to 20km away from the Sussex coast in the English Channel. Onshore construction is due to commence in 2015, with the project planned to be completed in phases over the following four years. The total investment into the project was estimated at £2bn. 326 244 284 324 330 357 213 0 50 100 150 200 250 300 350 400 2008 2009 2010 2011 2012 2013 2014 YTD No. of Deals Reported Aggregate Deal Value ($bn) Estimated Aggregate Deal Value ($bn)
Fig. 8: Number and Aggregate Value of Renewable Energy Infrastructure Deals, 2008 - 2014 YTD (As at 6 October 2014)
Source: Preqin Infrastructure Online
30% 48% 49% 50% 37% 34% 9% 8% 10% 11% 7% 7% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2012 2013 2014 YTD $1bn or More $500-999mn $100-499mn Less than $100mn
Fig. 9: Breakdown of Renewable Energy Infrastructure Deals by Deal Size, Deals Completed 2012 - 2014 YTD (As at 6 October 2014)
Source: Preqin Infrastructure Online
Proportion of Deals 2% 2% 3% 2% 46% 49% 53% 46% 37% 31% 27% 38% 10% 13% 10% 10% 2% 1% 1% 5% 3% 6% 3% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2011 2012 2013 2014 YTD Biomass/Biofuel Facility Geothermal Power Hydro Power Solar Power Wind Power Diversified Renewable Energy
Fig. 10: Breakdown of Renewable Energy Infrastructure Deals by Industry, 2011 - 2014 YTD (As at 6 October 2014)
Source: Preqin Infrastructure Online
Preqin’s Infrastructure Online features detailed information on more than 10,300 transactions completed historically, including 3,000 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
The second largest renewable energy transaction completed in 2014 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 1,600MW and a seawater desalination capacity of 52.5 MIGD (238,665 m3/day), located 120 km from Abu Dhabi. 9% 12% 8% 8% 6% 7% 8% 10% 55% 45% 50% 50% 29% 36% 33% 31% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2011 2012 2013 2014 YTD North America Europe Asia Rest of World
Fig. 11: Breakdown of Renewable Energy Deals by Region, 2011 - 2014 YTD (As at 6 October 2014)
Source: Preqin Infrastructure Online
Proportion of Deals 55% 37% 8% Greenfield Secondary Stage Brownfield
Fig. 12: Breakdown of Renewable Energy Deals by Project Stage, Deals Completed 2008 - 2014 YTD (As at 6 October 2014)
Source: Preqin Infrastructure Online
Fig. 13: Top 10 Renewable Energy Deals Completed in 2014 YTD (As at 6 October 2014)
Asset Transaction
Date Industry Country
Total Deal
Size (mn) Investors (Firms)
Rampion Offshore Wind Farm Project Jul-14 Wind Power UK 2,000 GBP E.ON Mirfa IWPP Jul-14 Hydro Power United Arab
Emirates 1,500 USD
Abu Dhabi Water & Electricity Authority, GDF SUEZ
Amrumbank West Wind Farm Jan-14 Wind Power Germany 1,000 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 1,000 USD Abengoa
Xina Solar Power Plant Jun-14 Solar Power South Africa 908 USD
Abengoa, Industrial Development Corporation, Public Investment
Corporation Lake Turkana Wind Power Project Mar-14 Wind Power Kenya 870 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 2,900 ILS Alstom, BrightSource Energy, NOY Infrastructure
Gode Wind Farm II Jul-14 Wind Power Germany 600 EUR
Industry Pension Insurance, Lærernes Pension, Medical Doctors'
Pension Fund, Pensionskassernes Administration
Fund Managers Investing in Renewables
Fund manager activity in renewable energy investment has increased since 2009, 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 2008 to 191 in 2013. Over this time, the estimated aggregate deal value has increased from $18bn to $44bn, demonstrating the overall growth in the industry. In 2014 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 2012 to 67% in 2014 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 2014 to date, these two industries have accounted for 36% and 49% of completed
deals respectively, with hydro power representing 10% 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 2012 to 2014 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 2014 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 $850mn), fi nanced with ILS 2.35bn ($687mn) in debt. The solar plant has a generating capacity of 121 MW, with an expected completion date of 2017.
98 99 121 156 135 191 94 0 50 100 150 200 250 2008 2009 2010 2011 2012 2013 2014 YTD No. of Deals Reported Aggregate Deal Size ($bn) Estimated Aggregate Deal Size ($bn)
Fig. 14: Number and Aggregate Value of Renewable Energy Infrastructure Deals Completed by Fund Managers, 2008 - 2014 YTD (As at 6 October 2014)
Source: Preqin Infrastructure Online
4% 4% 2% 4% 36% 44% 48% 36% 50% 40% 35% 49% 7% 10% 8% 10% 1% 1% 3% 1% 7% 1% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2011 2012 2013 2014 YTD Biomass/Biofuel Facility Geothermal Power Hydro Power Solar Power Wind Power Diversified Renewable Energy
Fig. 15: Breakdown of Renewable Energy Infrastructure Deals Completed by Fund Managers by Industry, 2011 - 2014 YTD (As at 6 October 2014)
Source: Preqin Infrastructure Online
Proportion of Deals
Fig. 16: Top Five Fund Managers by Number of Renewable Energy-Focused Infrastructure Deals Completed in 2012 - 2014 YTD (As at 6 October 2014)
Firm No. of Completed
Deals Location Sample Transactions
Fiera Axium Infrastructure 38 Canada Oregon Wheat Field Wind Farm, $96.53mn (Sep-13), Vents Du Kempt Wind Farm, CAD 340mn (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 200 (Nov-13), Woakwine Wind Farm, AUD 1,000
(Jun-12)
LS Power Group 12 US Lake Lynn Hydro Plant (Sep-13), Warren Hydro Plant (Sep-13)
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 2008 to 99 in 2012, with the estimated aggregate deal value also increasing from $13bn to $38bn. 2013 saw the number of completed deals decline to 79, with just 41 completed in 2014 so far; however, these values are likely to increase as further information becomes available.
Wind power has accounted for the largest proportion of direct renewable energy transactions completed by institutional investors, representing 61% of deals in 2013 and 51% of deals in 2014 so far, as shown in Fig. 18. Solar power transactions are the next most prominent, representing 22% and 34% of deals in 2013 and 2014 respectively. In 2014 so far, hydro power has accounted for 10% of deals, increasing from 6% in 2013, indicating a renewed interest in this area among institutional investors.
A notable deal in 2014 to date involving an institutional investor investing directly is the sale of DONG Energy’s interest in London Array Wind Farm to asset manager Caisse de dépôt et placement du Québec (CDPQ) for a total consideration amount of £644mn (€781mn). The project is a 630MW wind power facility located in the outer Thames Estuary in the UK and covers an area of around 245km2. It includes 175 wind turbines and an onshore substation
at Cleve Hill, Kent.
Five notable institutional investors in renewable energy assets are shown in Fig. 19. Germany-based asset manager MEAG Munich Ergo Asset Management and Norway-based government agency Norfund have each undertaken seven renewable energy transactions since 2012.
Institutional Investors Investing in Renewables
Preqin’s Infrastructure Online features in-depth profi les for over 2,300 institutional investors in infrastructure, including 1,085 with an interest in renewable energy.
For more information, please visit: www.preqin.com/infrastructure 43 51 48 59 99 79 41 0 20 40 60 80 100 120 2008 2009 2010 2011 2012 2013 2014 YTD No. of Deals Reported Aggregate Deal Size ($bn) Estimated Aggregate Deal Size ($bn)
Fig. 17: Number and Aggregate Value of Renewable Energy Infrastructure Deals Completed by Institutional Investors, 2008 - 2014 YTD (As at 6 October 2014)
Source: Preqin Infrastructure Online
2% 3% 8% 47% 51% 61% 51% 36% 32% 22% 34% 14% 10% 6% 10% 3% 1% 2% 1% 3% 5% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2011 2012 2013 2014 YTD Biomass/Biofuel Facility Geothermal Power Hydro Power Solar Power Wind Power Diversified Renewable Energy
Fig. 18: Breakdown of Renewable Energy Infrastructure Deals Completed by Institutional Investors by Industry, 2011 - 2014 YTD (As at 6 October 2014)
Source: Preqin Infrastructure Online
Proportion of Deals
Fig. 19: Notable Institutional Investors Involved in Renewable Energy-Focused Infrastructure Deals Completed in 2012 - 2014 YTD (As at 6 October 2014)
Firm No. of Completed
Deals Location Sample Transactions
MEAG Munich Ergo Asset
Management 7 Germany France Wind Farm Portfolio, €350mn (Jan-13), Asen Wind Farm (May-13) Norfund 7 Norway South Africa Solar Projects - 115MW, €300mn (May-13), Kinangop Wind
Farm, $150mn (Dec-13) Netherlands Development
Finance Company (FMO) 5 Netherlands
Lake Turkana Wind Power Project, $870mn (Mar-14), Salkhit Wind Farm (Apr-12)
Public Investment Corporation 5 South Africa Xina Solar Power Plant, $908mn (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)
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 2008 to 2009 from 220 to 122 respectively, showing small signs of recovery since and reaching a peak of 166 renewable energy deals completed in 2012, as shown in Fig. 20. However, the estimated aggregate deal value increased from $52bn in 2008 to $74bn in 2012, 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 2011, as shown in Fig. 21. However, the proportion has declined from accounting for 61% of deals in 2011 to 49% in 2014 so far. At the same time, solar power deals have increased from accounting for 24% of deals to 30% over the same time period. The top fi ve strategic investors by the number of renewable energy transactions they have been involved in from 2012 to 2014 so far are shown in Fig. 22. At the top of the list is France-based EDF Group, with a signifi cant 61 such deals completed,
including the acquisition of Canada-based Merritt Green Biomass Power Plant in July 2014, valued at CAD 235mn. As shown on page 5, the largest deal completed in 2014 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 2014 include the acquisition of a 100% equity stake in the Cerro Dominador Solar Power Plant by Abengoa. The asset is a 110 MW concentrated solar power (CSP) station located in Chile’s Atacama Desert. The solar facility has an expected completion date of 2017. The Inter-American Development Bank, the Clean Technology Fund, KfW Banking Group, the European Union and the Canadian Fund arranged $500mn in fi nancing for the $1bn project. Additional funding included a construction loan provided by BTG Pactual and a grant from the Chilean Ministry of Energy.
220 122 134 136 166 105 89 0 50 100 150 200 250 2008 2009 2010 2011 2012 2013 2014 YTD No. of Deals Reported Aggregate Deal Size ($bn) Estimated Aggregate Deal Size ($bn)
Fig. 20: Number and Aggregate Value of Renewable Energy Infrastructure Deals Completed by Strategic Investors, 2008 - 2014 YTD (As at 6 October 2014)
Source: Preqin Infrastructure Online
1% 1% 2% 61% 56% 54% 49% 24% 23% 29% 30% 10% 16% 7% 13% 1% 2% 4% 3% 8% 4% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2011 2012 2013 2014 YTD Biomass/Biofuel Facility Geothermal Power Hydro Power Solar Power Wind Power Diversified Renewable Energy
Fig. 21: Breakdown of Renewable Energy Infrastructure Deals Completed by Strategic Investors by Industry, 2011 - 2014 YTD (As at 6 October 2014)
Source: Preqin Infrastructure Online
Proportion of Deals
Fig. 22: Top Five Strategic Investors by Number of Renewable Energy-Focused Infrastructure Deals Completed in 2012 - 2014 YTD (As at 6 October 2014)
Firm No. of Completed
Deals Location 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, £800mn (Jan-13)
RWE Group 11 Germany Zuidwester Wind Farm, €150mn (Jan-14), Greater Gabbard Wind Farm, £308mn (Oct-12)
Source: Preqin Infrastructure Online
Use Preqin’s Infrastructure Online to identify over 2,000 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
Renewable Energy Transactions in 2014
By Region
Fig. 23: Notable Infrastructure Deals Completed in North American Renewable Energy Assets, 2014 YTD (As at 6 October 2014)
Asset Transaction
Date Industry Location
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 300 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 250 USD Enel, J.P. Morgan
Source: Preqin Infrastructure Online
Fig. 24: Notable Infrastructure Deals Completed in European Renewable Energy Assets, 2014 YTD (As at 6 October 2014)
Asset Transaction
Date Industry Location
Total Deal
Size (mn) Investors (Firms)
Rampion Offshore Wind Farm Jul-14 Wind Power UK 2,000 GBP E.ON Amrumbank West Wind Farm Jan-14 Wind Power Germany 1,000 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 600 EUR
Industry Pension Insurance, Lærernes Pension, Medical Doctors' Pension Fund,
Pensionskassernes Administration
Source: Preqin Infrastructure Online
Fig. 25: Notable Infrastructure Deals Completed in Asian Renewable Energy Assets, 2014 YTD (As at 6 October 2014)
Asset Transaction
Date Industry Location
Total Deal
Size (mn) Investors (Firms)
JinkoSolar Jul-14 Solar Power China 225 USD
China Development Bank Capital, Macquarie Infrastructure and Real Assets
(MIRA), New Horizon Capital Sindh Wind Farm - 50MW Apr-14 Wind Power Pakistan 132 USD Eleqtra, International Finance Corporation
(IFC), Metro Power Company Kabeli A Hydroelectric Plant May-14 Hydro Power Nepal 103 USD Eleqtra
Chhattisgarh Solar Power
Plants Jun-14 Solar Power India 40 USD EDF Group IDE Mini-Hydro Portfolio -
50MW Jul-14 Hydro Power Indonesia 23 USD Armstrong Asset Management
Source: Preqin Infrastructure Online
Fig. 26: Notable Rest of World Renewable Energy-Focused Transactions in 2014 YTD (As at 6 October 2014)
Asset Transaction
Date Industry Location
Total Deal
Size (mn) Investors (Firms)
Mirfa IWPP Jul-14 Hydro Power United Arab
Emirates 1,500 USD
Abu Dhabi Water & Electricity Authority, GDF SUEZ
Cerro Dominador Solar Power
Plant Jan-14 Solar Power Chile 1,000 USD Abengoa Xina Solar Power Plant Jun-14 Solar Power South Africa 908 USD
Abengoa, Industrial Development Corporation, Public Investment
Corporation Lake Turkana Wind Power
Project Mar-14 Wind Power Kenya 870 USD
Aldwych International, Finnfund, IFU, KP&P Africa, Netherlands Development Finance Company (FMO), Vestas Wind
Systems
KaXu Solar Power Plant May-14 Solar Power South Africa 7500 ZAR Abengoa, Industrial Development Corporation
How can Preqin’s
infrastructure
data help you?
Preqin’s Infrastructure Online
is the leading source of intelligence on
the infrastructure industry, and is constantly updated by Preqin’s
dedicated team of multilingual analysts.
Source
new investors with detailed profi les of
over 2,300 institutions investing in infrastructure.
Be the fi rst to know
about investors seeking
new infrastructure funds or co-investments.
Extensive
information for more than 10,300
completed transactions.
View
profi les for over 870 infrastructure funds
worldwide.
Conduct
competitor and market analysis.
Preqin’s
Infrastructure Online
is a vital tool for all professionals active
in the infrastructure industry. For more information, or to arrange a
demonstration, please visit:
If you want any further information, or would like to request a demo of our products, please contact us:
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Renewable Energy
Infrastructure
October 2014
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 10,700 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 6,000 infrastructure assets across the globe, including asset location, project stage and industry. Find fi rms 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 750 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 2,300 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 180 individual named funds.
