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Clean energy investments finally growing since 2011

In their recent press release, Clean Energy Pipeline reports that investments in clean energy have been increasing consistently in the 3rd quarter of 2014 and are set for the first year-on-year growth since 2011.

According to the release, new investments in the sector amount to $68.4 billion in 3Q14 – an 11% increase on the corresponding quarter of 2013.

Project finance surged for a seven-quarter high to $41.8 billion; a 17% increase from the corresponding quarter of 2013. Major contributing factors were:

  • Investments of $14.6 billion in projects in Asia underlined by the $5.4 billion investments in Chinese solar projects.
  • Investments in Japanese solar projects also accounted for around $1.8 Billion – mainly due to the $867 million loan led by Bank of Tokyo–Mitsubishi UFJ, Mizuho Bank and Sumitomo Mitsui Banking Corporation to fund construction of the 231 MW Setouchi City solar PV project, which will be the largest in Japan when operational.
  • UK Green Investment Bank and Marubeni’s $623 million refinancing of their 50% stakes in the 210 MW Westermost Rough offshore wind farm in the UK.
  • $481 million debt tranche arranged for Covanta’s 58 MW energy-from-waste facility in Dublin, Ireland.

31 Public market deals were made, again the highest number since 2011, raising around $3.6 billion through a mixture of IPOs, secondary’s and convertible notes. Highlights were:

  • Two YieldCos raising a combined $1.2 billion last quarter.
  • Residential solar installer Vivint Solar securing $330 million through an IPO on the New York Stock Exchange.
  • Chinese solar backsheet manufacturer Hangzhou First PV Material raising $265 million through an IPO on the Shanghai Stock Exchange.

263 M&A deals contributed $11.4 billion which was in line with the quarterly average of last 3 years. Notable deals were:

  • Acquisitions of waste businesses, including solid waste and wastewater treatment, recycling and waste-to-energy companies, accounted for 30% ($3.4 billion) of the total value of transactions.
  • Energy Capital Partners acquired waste-to-energy facility operator Wheelabrator Technologies for $1.9 billion accounting for 17% of the total value of M&A activity in 3Q14.

Venture capital and private equity investment in clean energy (excluding buyouts) totaled $1.5 billion in 3Q14, where solar contributed around 25% of total investment. Majorly due to:

  • $110 million secured by residential solar company Sunnova (investors undisclosed).
  • $53 million secured by GlassPoint Solar from Oman sovereign wealth fund State General Reserve Fund, Royal Dutch Shell and existing investors Chrysalix Energy Venture Capital, Nth Power and RockPort Capital.

Read original press release: “New clean energy investment set for year-on-year growth following robust third quarter”

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