Download top invester in new energy

UN General Assembly – Thematic Debate
31 July 2007
Michael Liebreich, Chairman & CEO
© New Energy Finance, 2007
Global Investment in Clean Energy 2004 - 2006
$70.9bn
$49.6bn
$27.5bn
43%
Growt
h
80%
Growt
h
2004
2005
2006
Grossed-up estimate based on disclosed deals. New investment only.
Source: New Energy Finance
2
© New Energy Finance, 2007
UN Report: Global Trends in Sustainable Energy
Investment 2007
“Transactions leap to record $100 billion in 2006;
Renewables Shed Fringe Image”
Press Release, United Nations Environment Programme
Sustainable Energy Finance Initiative
“The report clearly shows that […] the finance
sector believes the existing technologies of today
will ‘decarbonise’ the energy mix”
Yvo de Boer, Executive Secretary
United Nations Convention on Climate Change
Source: United Nations
3
© New Energy Finance, 2007
Wilder Hill New Energy Finance Global Innovation Index
(NEX), Dec 2002 to July 2007
450
400
NEX
350
AMEX Oil
300
Launch
of PBD
NASDAQ
250
S&P 500
200
150
100
07
Ju
n-
06
-0
6
D
ec
D
ec
Ju
n-
-0
5
05
Ju
n-
-0
4
D
ec
04
Ju
n-
-0
3
D
ec
03
Ju
n-
D
ec
-0
2
50
The NEX consists of the world’s largest, most liquid and most representative clean energy stocks. 30 December 2002 = 100
Source: New Energy Finance, American Stock Exchange
4
© New Energy Finance, 2007
Global Asset Financing by Sector
2004 – 2007
$37,201m
(423)
$42,285m*
(504)
$26,009m
(438)
$11,763m
(249)
2004
Wind
Biomass & Waste
2005
Biofuels
2006
Geothermal & Mini-Hydro
2007
Marine & Solar
Grossed-up estimate based on disclosed deals. Numbers in brackets refer to total deals. Includes new build & refinancings, excludes project acquisitions. *2007 = annualised YTD
Source: New Energy Finance
5
© New Energy Finance, 2007
Global VC/PE Investment by Type
2001 - 2007
$9,835m*
(127/398)
$8,585m
(329/433)
$5,317m
(252/300)
$809m
(50/72)
$934m
(73/87)
2001
$1,239m
(107/137)
2002
2003
Venture Capital
$2,273m
(172/210)
2004
2005
PE for Companies PIPE
2006
OTC
2007
Grossed-up estimate based on disclosed deals. Figures in brackets represent (deals with disclosed value/total number of deals). Includes PE – Buy-outs. *2007= annualised YTD
Source: New Energy Finance
6
© New Energy Finance, 2007
Venture Capital/Private Equity Funds Known to be
Targeting Clean Energy, June 2007
Asia &
Oceania
Total
Funds
= 1,388
127
15
64
9
21
18
291
Europe,
Middle
East
& Africa
76
62
84
64
92
48
561
414
67
Americas
Incubators
(158)
Venture
Capital
(769)
VC & Private
Equity
(135)
Private
Equity
(197)
63
700
Corporate
Venture
(129)
Excludes Chinese incubators; based on 1,388 funds known to New Energy Finance to be targeting clean energy technology.
Source: New Energy Finance
7
© New Energy Finance, 2007
Global Public Market Transactions by Region 2001 - 2007
$10,876m (25/50/46) $10,359m (26/28/37)
$5428m (14/40/41)
$365m (1/2/4) $291m (2/4/4) $438m (4/6/14)
2001
2002
$769m (4/8/23)
2003
2004
AMER
2005
EMEA
2006
2007
ASOC
Figures in brackets represent (IPOs/ secondary offerings/ convertible and other). Figures are new equity raised only, not total equity raised. 2007 = annualised YTD
Source: New Energy Finance
8
© New Energy Finance, 2007
Global Investment by Region
Other Developing
Latin America
Africa
India
China
Other OECD
EU 27
United States
$70.9bn
$49.6bn
$27.5bn
2004
2005
2006
Source: New Energy Finance
9
© New Energy Finance, 2007
Money Committed to Carbon Assets ~ $11.8bn to date
58 carbon investment vehicles (37 public, 21 private)
14,000
12,000
Total money
required to meet
Kyoto = $30bn to
2012
10,000
$m
8,000
Private
Public
6,000
4,000
2,000
0
1999
2000
2001
2002
2003
2004
2005
2006
2007
Q1
Source: New Carbon Finance
10
© New Energy Finance, 2007
In summary
There is no shortage of capital for clean energy companies and
projects
We are seeing very rapid growth rates in investment in all asset
classes and countries
Investment is diversifying:
– From Europe to global
– From wind to multi-sector
– From power generation to energy efficiency and infrastructure
Wind industry in particular has reached scale and is
maturing and consolidating rapidly
11
© New Energy Finance, 2007
Issues and Challenges…
Although capital is abundant, not enough is flowing to the developing
world – particularly slower developing countries
Valuations are currently in risky territory, particularly in the light of
recent capital market instability
Solar PV sector is being held back by silicon bottleneck, and when this
eases, prices and margins are likely to collapse
Biofuels will be more about global trade than about technology
US carbon markets will be minor players unless there is a federal
system
12
© New Energy Finance, 2007
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© New Energy Finance, 2007