GLOBAL TRENDS IN CLEAN ENERGY INVESTMENT Record-breaking offshore wind deal helps drive up clean energy investment in Q2 Luke Mills
CONTENTS 1. Annual clean energy investment overview 2. Quarterly trends in clean energy: new investment 3. Quarterly trends in clean energy: funds in circulation 4. Clean energy indexes 1
ANNUAL CLEAN ENERGY INVESTMENT OVERVIEW
CLEAN ENERGY INVESTMENT TYPES & FLOWS 2013 ($BN) +58 312 312 +60 254 Asset and company mergers, acquisitions, refinancing, buy-outs etc. +133 +16 Projects +2 +15 +14 +2 +13 46-2 Equipment manufacturing/ scale-up Technology development VC Corp RD&D Gov Gov R&D PE Public Public markets Total Total company VC Corp PE Re-invested R&D markets new equity company investment equity RD&D new equity investment Renewable energy AF AF Digital Digital energy & energy storage AF & storage AF SDC SDC Total Total new investment investment M&A/buy-outs Total Buy-outs etc. transactions transactions etc. Note: Total values include estimates for undisclosed deals. AF = asset finance, SDC = small distributed capacity. 3
NEW INVESTMENT IN CLEAN ENERGY 2004-13 ($BN) 21% $318bn -10% $286bn -11% 17% 34% 0.6% $195bn $196bn $262bn $254bn 44% $167bn 46% $55bn 45% $80bn $116bn 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Note: Total values include estimates for undisclosed deals. Includes corporate and government R&D, and spending for digital energy and energy storage projects (not reported in quarterly statistics). 4
NEW INVESTMENT IN CLEAN ENERGY BY REGION 2004-13 ($BN) -10% 21% $103bn -11% 17% 0.6% 34% $78bn $109bn $121bn 44% $39bn $49bn $62bn $68bn $88bn $71bn $18bn $13bn $24bn 46% 45% $22bn $23bn $35bn $29bn $42bn $45bn $58bn $70bn $63bn $82bn $50bn $84bn $115bn $127bn $106bn $66bn $68bn 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 EMEA AMER APAC Note: Total values include estimates for undisclosed deals. Includes corporate and government R&D, and spending for digital energy and energy storage projects (not reported in quarterly statistics). 5
QUARTERLY TRENDS IN CLEAN ENERGY: NEW INVESTMENT
NEW INVESTMENT IN CLEAN ENERGY Q1 2004-Q2 2014 ($BN) 21.8 21.8 19.1 19.7 17.1 13.8 8.9 8.8 8.1 9.811.8 52.7 50.7 47.2 42.3 43.4 47.7 47.3 45.643.0 34.8 36.7 33.9 30.5 27.3 27.1 57.5 66.1 57.3 78.0 74.1 65.0 53.4 69.6 58.3 62.1 43.6 58.3 49.1 58.1 47.7 63.6 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Four quarter running average Note: Total values include estimates for undisclosed deals. Excludes corporate and government R&D, and spending for digital energy and energy storage projects (reported in annual statistics only). 7
NEW INVESTMENT IN CLEAN ENERGY BY REGION Q1 2004-Q2 2014 ($BN) 21.8 21.8 19.1 19.7 17.1 13.8 8.9 8.8 8.1 9.811.8 52.7 50.7 47.2 42.3 43.4 47.7 47.3 45.643.0 34.8 36.7 33.9 30.5 27.3 27.1 57.5 66.1 57.3 78.0 74.1 65.0 53.4 69.6 58.3 62.1 43.6 58.3 49.1 58.1 47.7 63.6 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 EMEA AMER APAC Note: Total values include estimates for undisclosed deals. Excludes corporate and government R&D, and spending for digital energy and energy storage projects (reported in annual statistics only). 8
NEW INVESTMENT IN CLEAN ENERGY IN EUROPE Q1 2004-Q2 2014 ($BN) 32.2 9.8 8.4 6.8 7.7 7.1 7.2 4.1 4.8 5.1 5.6 3.9 14.0 9.2 13.3 13.9 24.3 12.9 19.2 19.7 19.4 11.1 24.8 21.721.9 20.4 17.1 27.9 28.6 26.2 27.5 25.7 21.4 23.1 17.8 21.2 15.8 9.5 10.7 11.1 9.9 14.0 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Four quarter running average Note: Total values include estimates for undisclosed deals. Excludes corporate and government R&D, and spending for digital energy and energy storage projects (reported in annual statistics only). 9
NEW INVESTMENT IN CLEAN ENERGY IN THE US Q1 2004-Q2 2014 ($BN) 20.4 4.1 1.4 1.5 1.7 2.4 1.9 3.5 0.9 11.8 10.3 11.1 9.5 10.07.6 7.1 8.1 6.1 6.1 6.7 7.4 3.2 8.7 6.4 5.2 6.4 9.2 7.5 12.9 6.2 17.3 11.1 9.5 15.3 8.1 7.4 4.1 10.4 6.2 16.0 7.9 10.6 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Four quarter running average Note: Total values include estimates for undisclosed deals. Excludes corporate and government R&D, and spending for digital energy and energy storage projects (reported in annual statistics only). 10
NEW INVESTMENT IN CLEAN ENERGY IN CHINA Q1 2004-Q2 2014 ($BN) 18.4 19.3 5.3 0.5 0.2 0.5 0.6 0.9 1.6 0.7 1.9 3.0 2.8 3.0 3.3 3.2 3.7 1.6 1.8 7.3 6.4 6.6 6.7 7.2 11.7 10.2 7.0 10.3 10.8 11.0 8.4 14.3 12.912.2 10.0 15.8 13.8 8.4 16.6 15.5 13.7 9.9 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Four quarter running average Note: Total values include estimates for undisclosed deals. Excludes corporate and government R&D, and spending for digital energy and energy storage projects (reported in annual statistics only). 11
NEW INVESTMENT IN CLEAN ENERGY BY SECTOR Q1 2004-Q2 2014 ($BN) 50.7 47.2 42.3 43.4 34.8 52.7 47.7 47.3 45.643.0 36.7 33.9 30.5 21.8 19.1 17.1 21.8 27.3 27.1 8.9 8.8 8.1 9.811.8 13.8 57.5 66.1 57.3 78.0 74.1 65.0 53.4 69.6 58.3 62.1 43.6 58.3 49.1 58.1 47.7 63.6 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Wind Solar Biofuels Other Note: Total values include estimates for undisclosed deals. Excludes corporate and government R&D, and spending for digital energy and energy storage projects (reported in annual statistics only). 12
NEW INVESTMENT IN CLEAN ENERGY BY ASSET CLASS Q1 2004-Q2 2014 ($BN) 21.8 19.1 19.7 21.8 17.1 13.8 8.9 8.8 8.1 9.811.8 52.7 50.7 47.2 42.3 43.4 47.7 47.3 45.643.0 34.8 36.7 33.9 30.5 27.3 27.1 57.5 66.1 57.3 78.0 74.1 65.0 53.4 69.6 58.3 62.1 43.6 58.3 49.1 58.1 47.7 63.6 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Asset finance* Public markets VC/PE Small distributed capacity Note: Total values include estimates for undisclosed deals. Excludes corporate and government R&D, and spending for digital energy and energy storage projects (reported in annual statistics only). 13
PUBLIC MARKET NEW INVESTMENT IN CLEAN ENERGY Q1 2004-Q2 2014 ($BN) 13.7 0.2 0.1 0.0 0.4 0.8 1.0 0.7 2.6 1.8 4.2 1.3 4.34.0 3.3 3.4 1.6 7.0 2.8 1.1 0.4 4.8 4.1 5.8 1.4 3.2 3.7 5.5 4.6 4.9 1.5 1.1 0.9 1.4 1.8 0.6 1.2 4.1 2.2 5.4 3.6 3.8 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Four quarter running average 14
TOP PUBLIC MARKET TRANSACTIONS OF THE QUARTER Q2 2014 Organisation Stock exchange Sector Type of transaction New equity raised Total offering size SunEdison New York Stock Exchange (NYSE) Solar Convertible $600m $600m NextEra Energy Partners LP New York Stock Exchange (NYSE) Wind IPO $467.2m $467.2m SunPower Corp NASDAQ Global Select Market (GS) Solar Convertible $400m $400m Pattern Energy Group NASDAQ Global Select Market (GS) Wind Secondary $300m $662.4m Trina Solar New York Stock Exchange (NYSE) Solar Convertible $172.5m $172.5m 15
VC/PE NEW INVESTMENT IN CLEAN ENERGY Q1 2004-Q2 2014 ($BN) 4.1 0.2 0.6 0.3 0.3 0.6 0.7 0.4 0.7 1.1 1.5 1.8 2.1 1.2 1.5 1.8 2.6 2.4 3.1 2.6 1.8 2.2 2.8 2.7 1.4 1.6 1.8 2.0 2.4 2.1 1.9 1.8 1.9 1.2 1.3 1.4 1.6 1.2 0.70.9 1.2 1.6 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Four quarter running average Note: Total values include estimates for undisclosed deals. 16
TOP VC/PE TRANSACTIONS OF THE QUARTER Q2 2014 Organisation Country Sector Type of transaction Value Boston-Power US Energy storage PE - expansion capital $250m Sunrun US Solar VC - further / pre-ipo round $150m Sunnova Energy US Solar PE - expansion capital $145m Solor Bioenergi Holding Norway Biomass & waste PE - expansion capital $109m Sungevity US Solar PE - expansion capital $70m 17
ASSET FINANCING FOR NEW BUILD RENEWABLE ENERGY ASSETS Q1 2004-Q2 2014 ($BN) 52.5 51.8 12.9 13.2 14.7 16.7 13.9 10.1 6.4 5.9 6.9 8.0 5.6 27.1 22.0 19.5 27.8 31.6 25.9 32.5 31.2 34.7 17.5 33.2 33.1 31.1 29.2 28.1 37.9 44.0 32.0 46.7 44.0 40.8 38.5 38.2 37.3 35.8 30.8 31.4 26.1 22.8 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Four quarter running average Note: Total values include estimates for undisclosed deals. Excludes spending for digital energy and energy storage projects (reported in annual statistics only). 18
TOP ASSET FINANCE TRANSACTIONS OF THE QUARTER Q2 2014 Project name Country Sector Type of transaction Capacity Value Gemini Offshore Wind Farm Netherlands Wind Term loan 600MW $3,839.8m Ashalim I Sun Negev STEG Plant Israel Solar Term loan 121MW $818m Fortum Vartan Biomass Plant Sweden Biomass & waste Term loan 130MW $684.4m Cemex Ventika Wind Portfolio Mexico Wind Term loan 252MW $647m Renova Energia BNDES Wind Portfolio Brazil Wind Term loan 386.1MW $561.4m 19
QUARTERLY TRENDS IN CLEAN ENERGY: FUNDS IN CIRCULATION
FUNDS IN CIRCULATION IN CLEAN ENERGY Q1 2004-Q2 2014 ($BN) 30.3 4.0 4.5 8.4 7.1 12.6 8.7 11.0 5.6 14.2 10.1 15.0 17.7 21.9 18.7 12.0 14.5 16.8 12.6 17.9 15.7 19.8 16.8 11.5 14.8 18.8 12.8 17.4 20.1 18.0 12.5 10.6 22.5 15.9 15.5 13.5 12.4 13.1 10.9 3.0 3.3 1.6 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Four quarter running average Note: Total values include estimates for undisclosed deals. Excludes spending for digital energy and energy storage projects (reported in annual statistics only). 21
TOP TRANSACTIONS FOR FUNDS IN CIRCULATION Q2 2014 Organisation Country Sector Type of transaction Acquirer Value Pattern Energy Group US Wind Secondary investor exit Not disclosed $362.4m Voltalia Rio Grande do Norte Wind Portfolio - Refinancing Brazil Wind Balance sheet BNDES $279.4m SunPower & Google US Residential PV Portfolio Tax Equity US Solar Balance sheet Google $250m Enel Brazil Wind Portfolio - Refinancing Brazil Wind Asset refinancing International Finance Corp $200m Elkem Solar Norway Solar PE - buy-out / corp spinoff Guangyu International Investment $200m 22
CORPORATE M&A TRANSACTIONS IN CLEAN ENERGY Q1 2004-Q2 2014 ($BN) 17.2 1.2 1.0 0.9 2.1 1.4 5.6 2.0 4.5 4.9 4.9 3.6 3.8 3.8 2.7 7.3 9.4 7.9 3.2 5.6 3.5 5.5 3.1 6.2 8.1 7.2 3.6 4.4 5.9 3.0 7.3 8.5 4.5 4.5 3.8 2.1 1.9 2.5 3.1 1.7 7.1 2.8 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Four quarter running average Note: Total values include estimates for undisclosed deals 23
RENEWABLE ENERGY ASSET ACQUISITIONS & REFINANCING Q1 2004-Q2 2014 ($BN) 18.9 2.8 1.4 1.7 1.5 1.7 1.5 0.6 6.5 3.4 4.0 2.3 8.9 3.7 8.7 7.1 10.7 10.1 12.7 12.4 11.4 11.5 8.6 9.6 9.1 8.2 8.5 8.6 9.6 10.6 9.3 8.3 6.3 6.9 6.9 7.1 10.9 10.9 8.7 9.4 7.0 4.5 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Four quarter running average Note: Total values include estimates for undisclosed deals 24
CLEAN ENERGY INDEXES
NEX CLEAN ENERGY INDEX 2003 14 YTD 500 400 300 200 NEX NASDAQ S&P 500 100 0 Jan 03 Jan 05 Jan 07 Jan 09 Jan 11 Jan 13 Jan 15 Note: Values as of 23 June 2014; NASDAQ and S&P 500 rebased to 100 on 1 Jan 2003 26
NEX CLEAN ENERGY INDEX 2012 14 YTD 200 180 160 140 120 100 NEX NASDAQ S&P 500 80 60 40 Jan 12 Jul 12 Jan 13 Jul 13 Jan 14 Jul 14 Jan 15 Note: Values as of 23 June 2014; NASDAQ and S&P 500 rebased to 100 on 1 Jan 2011 27
NEX CLEAN ENERGY INDEX 2013 14 YTD 200 180 160 140 120 100 NEX NASDAQ S&P 500 80 60 40 Jan 13 Apr 13 Jul 13 Oct 13 Jan 14 Apr 14 Jul 14 Oct 14 Note: Values as of 23 June 2014; NASDAQ and S&P 500 rebased to 100 on 1 Jan 2011 28
NYSE BNEF REGIONAL CLEAN ENERGY INDEXES 2006-14 YTD 300 250 200 150 300 250 200 150 NYSE BNEF AMER Index NYSE BNEF AMER Index NYSE BNEF ASOC Index NYSE BNEF ASOC Index 100 50 100 50 0 Jan 06 Jan 07 Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 Jan 14 0 Jan 06 Jan 07 Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 Jan 14 NYSE BNEF EMEA Index NYSE BNEF EMEA Index MSCI World & Emerging MSCI World & Emerging Note: Values as of 10 July 2014; NASDAQ and S&P 500 rebased to 100 on 30 December 2005 29
NYSE GLOBAL CLEAN ENERGY SECTOR INDEXES 2006-14 YTD 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 NYSE BNEF Wind Index NYSE BNEF Solar Index NYSE BNEF EST Index MSCI World & Emerging 0 0 Dec 05 Sep 06 Jun 07 Mar 08 Dec 08 Sep 09 Jun 10 Mar 11 Dec 11 Sep 12 Jan 06 Jan 07 Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 Jan 14 Note: Values as of 10 July 2014; NASDAQ and S&P 500 rebased to 1,000 on 30 December 2005 30
COPYRIGHT AND DISCLAIMER This publication is the copyright of Bloomberg New Energy Finance. No portion of this document may be photocopied, reproduced, scanned into an electronic system or transmitted, forwarded or distributed in any way without prior consent of Bloomberg New Energy Finance. The information contained in this publication is derived from carefully selected sources we believe are reasonable. We do not guarantee its accuracy or completeness and nothing in this document shall be construed to be a representation of such a guarantee. Any opinions expressed reflect the current judgment of the author of the relevant article or features, and does not necessarily reflect the opinion of Bloomberg New Energy Finance, Bloomberg Finance L.P., Bloomberg L.P. or any of their affiliates ("Bloomberg"). The opinions presented are subject to change without notice. Bloomberg accepts no responsibility for any liability arising from use of this document or its contents. Nothing herein shall constitute or be construed as an offering of financial instruments, or as investment advice or recommendations by Bloomberg of an investment strategy or whether or not to "buy," "sell" or "hold" an investment. 31
MARKETS Renewable Energy Energy Smart Technologies Advanced Transport Gas Carbon and RECs SERVICES Americas Service Asia Pacific Service EMEA Service Applied Research Events and Workshops Unique analysis, tools and data for decision-makers driving change in the energy system Angus McCrone Chief Editor (UK) amccrone1@bloomberg.net +44 (0)20 3216 4795 Ethan Zindler Head of Americas (US) ezindler@bloomberg.net +1 202 416 3466 Luke Mills Data Analyst (UK) lmills9@bloomberg.net +44 (0)20 3525 8135 sales.bnef@bloomberg.net