Wind Power Investments Increase, Report Finds

AUSTIN, Texas — Global venture capital funding for wind energy added up to $369 million in 14 deals in 2011, a nearly $100 million increase from the previous year, according to a report released Jan. 11 by clean energy consulting firm Mercom Capital Group.

That total marked an increase from $277 million in 11 deals made in 2010 and $189 million in 20 deals in 2009, the report said.

ReNew Wind Power’s $202 million raised was the top venture capital funding deal. Next were Boulder Wind with $35 million raised and Power and Energy Direct with $29 million.

Project-specific funding was also higher than in previous years, reaching nearly $11 billion — $1.6 billion more than in 2010, according to the report. Offshore wind projects raised $3.4 billion in five deals, and onshore wind projects garnered $7.5 billion in 46 deals.

The United States saw the most venture capital funding deals in terms of companies, which raised $294.7 million in nine deals, and projects, which saw $2.9 billion from 19 deals.

Germany came in a close second in investments, which attracted $2.8 billion in large-scale project funding. Canada came in third, drawing $1.1 billion.

The most active project investor was the European Investment Bank, which was behind eight transactions, followed by the International Finance Corp.’s seven transactions and four other investors with four transactions each.

China dominated debt funding, accounting for $6.8 billion of the $11 billion announced overall in 2011. Denmark and Spain followed with $1.9 billion and $1.7 billion in debt, respectively, while the U.S. came in fifth with $201 million.

The single largest deal was the $5 billion credit facility issued to Guandong Ming Yang Wind Power Industry Group Co. by the China Development Bank.

Mergers and acquisitions activity amounted to $1.7 billion in 17 deals. The largest was ZF Friedrichshafen’s $724 million acquisition of windgear maker Hansen Transmissions, a subsidiary of Suzlon.

Wind component companies accounted for $1 billion and wind downstream companies accounted for $700 million in mergers and acquisitions activity in 2011. In addition, $4 billion was transacted in 61 deals relating to wind mergers and acquisitions activity.