Global venture capital funding in wind energy sector drops by 35% in one quarter

NEW DELHI: Wind venture capital (VC) funding dropped to $135 million in Q3 of 2013 compared to $210 million during the last quarter. Total funding in the wind sector came in at $5.6 billion in Q3 2013, including VC funding and other equity financings, debt financings and announced project funding deals.

Mercom Capital Group, a global clean energy communications and consulting firm in its report mentioned a drop in both VC funding and project acquisitions. Large-scale project funding in Q3 2013 totalled $3.7 billion in 28 deals compared to $3.2 billion in 24 deals in Q2 2013. There were a total of 59 investors that participated in project funding deals this quarter.

There were 14 merger & acquisitions (M&A) transactions in Q3 2013, four of which disclosed amounts, totalling $280 million.

Amongst notable Indian transactions, Green Infra, a renewable energy power producer acquired a majority stake in TVS Energy, a subsidiary of TVS Motor, for an undisclosed amount. With the latest acquisition, Green Infra has added 59.75 MW of wind farms across Tamil Nadu and Maharashtra, taking its operating capacity to 377 MW. There have been 79 project acquisitions year-to-date compared to 72 in all of last year.

Nagarjuna Agrichem, an Indian agrochemicals maker, sold off its entire wind power business to an undisclosed investor for Rs.30 crore as part of its strategy to consolidate on core business.

Continuum Wind Energy, a wind project developer, backed by Morgan Stanley Infrastructure Partners has acquired DJ Energy and Uttar Urja Power Projects from Delhi based Sravanthi Group totaling 178.7 MW for an undisclosed amount.