Q4.14: Cleantech and Renewable Energy Investment Review

Transcription

1 : Cleantech and Renewable Energy Investment Review

2 02 Welcome to Taylor Wessing s analysis of clean energy investment activity in Europe in the fourth quarter of 2014 (). Total investment in Europe s clean energy sector, defined as the sum of project finance, public markets, venture capital and private equity, totalled $17.1 billion in. This represents a 16% increase on the $14.8 billion invested in Q3.14 and a 34% increase on the $12.8 billion invested in the corresponding quarter in Investment in 2014 totalled $64.3 billion, a 40% annual increase. This is the highest annual investment volume since Project finance totalled $15.9 billion in, a 37% increase on Q4.13. Investment was bolstered by a number of billion dollar utility balance sheet investments in the offshore wind sector. In Germany, Iberdrola commenced construction of the 350 MW Wikinger offshore wind farm representing an investment of $1.7 billion while Vattenfall and Stadtwerke München started work on the 288 MW Sandbank offshore wind farm representing a $1.5 billion investment. Notable non-recourse project finance transactions also included the 319 million ($510 million) secured for the Allerton Waste Recovery Park in the UK and the 360 million ($450 million) secured for the Cestas solar PV project in France. Public markets activity remained robust in - clean energy companies secured more than $1 billion through IPOs, secondaries and convertible note issuances on European public markets, in line with the corresponding quarter in Clean energy companies raised $3.8 billion throughout 2014, a 65% increase on the $2.3 billion secured in This is the largest volume of funds raised by clean energy companies in Europe since The most notable deals in included the secondary offerings by UK yieldcos Greencoat UK Wind ($200 million), Bluefield Solar Income Fund ($195 million) and NextEnergy Solar Fund ($152 million) on the London Stock Exchange. The largest IPO was executed by Norwegian solar project developer Scatec Solar, which raised $123 million on the Oslo Stock Exchange in October M&A activity was also particularly strong in. Some 124 acquisitions valued at $10 billion were announced in, more than double the value of M&A deals in Q4.13. The sizeable increase was the direct result of large acquisitions of solar PV and off-shore wind companies and projects. The most notable deal was the $2 billion merger of solar cell and module manufacturers Hanwha SolarOne and Hanwha Q-Cells in December In contrast, venture capital and private equity investment slumped to $183 million in, a 31% decrease on Q4.13 and the second-lowest quarterly investment volume recorded during the past two years. Despite the sizeable quarterly decrease, venture capital and private equity investment in 2014 posted 68% annual growth to $1.5 billion. The largest deal in was UK-based water solution innovator i2o s 8 million ($12.5 million) fundraising led by Naxos Capital Partners, Nemadi Advisers and Ombu Group.

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: Q4.12 to ($ million) Deal value ($ million) Number of deals Private equity (Development capital) Venture capital - Late stage (Series D+) Venture capital - Early growth (Series A to C) Number of deals Q4.12 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14 Q2.14 Q Average Quarterly VC/PE Investment Q4.12 to ($ million) Venture Capital (early-stage) Venture Capital (late-stage) 47.8 Private Equity (development capital) Average deal size Q4.12 to ($ million) Venture Capital (early-stage) 4.9 Venture Capital (late-stage) 24.8 Private Equity (development capital) 47.4

5 05 Venture Capital and Private Equity Top 10 Venture Capital Deals: Q4.12 to Company Sector Country Deal value ($ million) i2o Water Water & Waste Water Treatment Investor(s) UK 13 Naxos Capital Partners, Nemadi Advisors Limited, Ombu Group Novelda AS Energy Efficiency Norway 12 Investinor AS, Alliance Venture AS, SpareBank 1 J&B Recycling Recycling & Waste UK 12 Business Growth Fund Sonnenbatterie GmbH Energy Storage Germany 9 Munich Venture Partners, Chrysalix SET (f.k.a. SET Venture Partners), ecapital entrepreneurial Partners AG Easybike Green Transportation France 9 Aster Capital SA, Sigma Gestion Ynsect Agriculture France 7 Demeter Partners SA, Emertec Gestion SA, New Protein Capital Sunna Design Energy Efficiency France 7 Demeter Partners SA Groupe APR2 Recycling & Waste France 6 Xerys Onzo Ltd. Energy Efficiency UK 6 Cipio Partners GmbH, Sigma Capital Group plc, West Coast Capital WeSustain GmbH Energy Efficiency Germany 5 High-Tech Gründerfonds Management GmbH, KfW Bankengruppe, MBG Mittelständische Beteiligungsgesellschaft Baden- Württemberg GmbH

6 06 Venture Capital and Private Equity European Private Equity Buyouts: Q4.12 to ($ billion) 7 6 Deals of over $100 million Deals of under $100 million Number of deals Deal value ($ billion) Number of deals Q4.12 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14 Q2.14 Q Average Private Equity Buyout Investment: Q4.12 to Average Quarterly PE Buyout Volume ($ billion) 2.5 Average Number of Deals per Quarter 42 Average PE Buyout transaction value ($ million) 59.8

7 07 Venture Capital and Private Equity Top Five investments by private equity funds, infrastructure funds and institutional investors Q4.12 to 1 Baltic 2 offshore wind farm (288MW) $859 million Country: Germany Sector: Wind Investor: Macquarie Capital Sheringham Shoal offshore wind farm 2 (317MW) Country: UK Investor: UK Green Investment Bank $378 million Sector: Wind 3 EDPR France $208 million Country: France Sector: Wind Investor: EFG Hermes 4 Three UK-based solar PV plants (62MW) $116 million Country: UK Sector: Solar Investor: Bluefield Solar Income Fund (BSIF) Five solar PV plants in Aquitaine, southern 5 France (50.8MW) Country: France Investor: Capital Stage AG $87 million Sector: Solar Note: This table includes investments by institutional investors

8 08 Venture Capital and Private Equity European Venture Capital Investment by Sector: Q4.12 to ($ million) Water & Waste Water Treatment Q4.13 Agriculture Q3.14 Recycling & Waste Solar Energy Efficiency Deal value ($ million) European Venture Capital Investment by Country: Q4.12 to ($ million) Norway Q4.13 Q3.14 Finland Germany UK France Deal value ($ million)

9 09 Mergers and Acquisitions European M&A Activity: Q4.12 to 12 Deals of over $500 million Deals of under $500 million Number of deals Deal value ($ billion) Number of deals Q4.12 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14 Q2.14 Q Clean Energy Pipeline calculates M&A activity based on announced transactions within each quarter. Average M&A Investment: Q4.12 to Average Quarterly M&A Deal Volume ($ billion) 6.3 Average number of deals per quarter 127 Average M&A transaction value ($ million) 49.3

10 10 Mergers and Acquisitions European M&A Activity by Sector Biomass Water & Waste Water Treatment Energy Efficiency Q3.14 Q4.13 Solar Wind Deal value ($ billion) European M&A Activity by Country Austria Norway Q3.14 Q4.13 France Germany UK Deal value ($ billion) 4.5

11 11 Mergers and Acquisitions : Top Five European M&A Transactions Target: Hanwha Q-Cells GmbH 1 Acquirer: Hanwha SolarOne Country: Germany $2,000 million Sector: Solar Target: Baltic 2 off-shore wind farm (288MW) 2 Acquirer: Macquarie Group Ltd. Country: Germany $859 million Sector: Wind Target: REC Solar ASA 3 Acquirer: Bluestar Elkem Investment Co. Ltd. Country: Norway $637 million Sector: Solar Target: Sheringham Shoal off-shore wind farm (317MW) 4 Acquirer: UK Green Investment Bank Country: UK $378 million Sector: Wind Target: Enel Green Power France SAS 5 Acquirer: Boralex Inc. Country: France $364 million Sector: Wind

12 12 Project and Asset Finance European Project Finance Deal Volume: Q4.12 to 18 Northern Europe Central & Eastern Europe 16 Southern Europe Western Europe Deal value ($ billion) Q4.12 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14 Q2.14 Q3.14

13 13 Project and Asset Finance European Project Finance - Top Five Countries Q4.13 Total: $8.3 billion Germany 6% Italy 4% Spain 4% France 17% UK 69% Total: $8.2 billion Italy 4% Germany 10% Spain 1% France 14% UK 71% Total: $11.1 billion Italy 8% Germany 11% Spain 0% France 36% UK 45%

14 14 Project and Asset Finance European Project Finance - Top Sectors Q4.13 Total: $10.9 billion Off-shore wind 16% Solar thermal 0% Biomass 21% On-shore wind 42% Solar PV 21% Total: $11.1 billion Off-shore wind 15% Solar thermal 1% Biomass 15% On-shore wind 41% Solar PV 28% Total: $15 billion Biomass 14% Solar PV 10% Solar thermal 0% Off-shore wind 39% On-shore wind 37%

15 15 Project and Asset Finance : Top Five European Project Finance Transactions 1 Germany - Off-shore wind $1,712 million Project Wikinger (350MW) Equity Provider Debt Provider - Iberdrola Renovables SA 2 Germany - Off-shore wind $1,515 million Project Sandbank (288MW) Equity Provider Debt Provider - Vattenfall AB / Stadtwerke Munchen GmbH 3 UK - Off-shore wind $1,300 million Project Burbo Bank Extension (258MW) Equity Provider Debt Provider DONG Energy A/S 4 UK - Biomass $510 million Project Allerton Waste Recovery Park Equity Provider Aberdeen Asset Management / AmeyCespa Ltd. / Equitix Ltd. Debt Provider European Investment Bank / KfW Bankengruppe / Nord LB / Sumitomo Mitsui Banking Corp. / Siemens Financial Services / UK Green Investment Bank 5 UK - Off-shore wind $490 million Project Lincs Offshore Transmission Project Equity Provider International Public Partnerships Ltd. (INPP) Debt Provider European Investment Bank

16 16 Project and Asset Fina nce : European Project Finance by Sector as a Percentage of Total Deal Volume / Total Number of Deals Wind Biomass Solar Water & Waste Water Treatment Energy Efficiency Hydro % of total deal value % of total numbers of deals Other Percentage (%)

17 17 Public Markets Quarterly Breakdown - Number of Public Market Deals (Q4.12 to ) Q4.12 Q1.13 Q3.13 Q4.13 Q1.14 Q2.14 Q Deals 3 Deals 0 Deals Q Deals 9 Deals 11 Deals 6 Deals 10 Deals 11 Deals Quarterly Breakdown - Analysis of Percentage Contribution of Total Funds Raised by Quarter between Q4.12 and Q4.12 Q1.13 Q3.13 Q4.13 Q1.14 Q2.14 Q3.14 5% 7% 0 Deals Q % 16% 26% 3% 14% 16%

18 Europe > Middle East > Asia Taylor Wessing LLP 2015 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_001525_02.15