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Global VC funding in wind sector touches $17 mn in Q2

Last Updated: Thursday, July 26, 2012 - 17:49

New Delhi: The global Venture Capital (VC) funding in the wind sector reached USD 17 million in the second quarter this year, driven by India's ReGen Powertech which raised nearly half of the total kitty.

According to Mercom Capital Group, a communications and consulting firm, the top VC deal this quarter was the USD 9.8 million raised by India's ReGen Powertech, a manufacturer of wind turbines.

The global venture capital funding in the second quarter of 2012 amounted to USD 17 million just in three deals, a significant slump from the previous quarter when there were as many as 12 VC funding deals worth USD 240 million.

Announced large-scale project funding in the June quarter this year totalled USD 5.4 billion in 23 deals. Of that, USD 4 billion went to onshore projects and USD 1.4 billion went to offshore projects, the report said.

The top project funding deals globally for the second quarter also included India's Beta Wind Farm, which raised USD 50 million by Nordic Investment and AXIS Bank for seven wind turbine parks in India.

Five of the seven units are being constructed in the state of Tamil Nadu, and the remaining two units will be built in Andhra Pradesh and Gujarat.

Some other top project funding deals included USD 444 million raised by Invenergy for its 200 MW California Ridge Wind Energy Project, and USD 379 million raised by Iberdrola and Neoenergia for 10 wind farms totaling 288 MW.

Corporate Merger and Acquisition (M&A) activity also slowed in Q2 of 2012. It amounted to USD 93 million in five transactions compared to USD 872 million in 11 transactions in the first quarter this year.

The USD 60 million acquisition of Suzlon (Suzlon Energy Tianjin Ltd), a wind turbine manufacturer, by China Power New Energy Development Co (CPNE) was the top M&A transaction for the quarter, Mercom Capital said.

There were 17 project M&As announced in the June quarter amounting to USD 705 million in six disclosed transactions.

Top project M&A transactions were the USD 301 million acquisition of Agaoglu Group's two wind farms (126 MW) by Dogan Sirketler Grubu Holding, and the USD 174 million acquisition of AGL Energy's Hallett 5 wind farm (52.5 MW) by Eurus Energy.


First Published: Thursday, July 26, 2012 - 17:49
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