Download Q2.15: Cleantech and Renewable Energy

Q2.15: Cleantech and
Renewable Energy
Investment Review
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Welcome to Taylor Wessing’s analysis of clean energy investment activity in
Europe in the second quarter of 2015 (Q2.15). Total investment in Europe’s clean
energy sector, defined as the sum of project finance, public markets, venture
capital and private equity, totalled $16.6 billion in Q2.15. This represents an 8%
increase on the $15.3 billion invested in Q1.15 and a 23% increase on the $13.5
billion invested in the corresponding quarter in 2014.
Project finance totalled $15.9 billion in Q2.15, a 24% annual increase. This was
caused by a small number of large offshore wind farms reaching financial close
- Race Bank ($2.6 billion), Veja Mate ($2.1 billion), Rampion ($2.0 billion) and
Nordergründe ($452 million). Despite the surge in the value of project finance,
the number of deals declined 30% annually to only 115 transactions in Q2.15.
Clean energy companies raised $568 million on the European public markets in
Q2.15 through a mixture of IPOs, secondaries and convertible note issuances.
This represents a 40% decrease on the $952 million secured the previous quarter
but more than double the $215 million secured in the corresponding period in
2014. The most notable deal was the $429 million IPO of Wacker Chemie’s wafer
subsidiary Siltronic on the Frankfurt Stock Exchange. Yieldcos were unusually
quiet in Q2.15, only securing $72 million through secondary offerings of Foresight
Solar Fund and The Renewables Energy Infrastructure Group. The previous
quarter yieldcos secured $379 million through a series of secondary offerings.
Venture capital and private equity investment totalled $140 million in Q2.15, a
72% decrease on the $495 million invested in Q2.14. Investment was in fact at its
lowest quarterly level during the last five years. The most notable deal was the
$31 million Series B financing round for French next generation LED company
Aledia SA.
M&A activity was also subdued in Q2.15. Some 104 acquisitions valued at $4.5
billion were announced in Q2.15, a 30% decrease in value on Q2.14. The number
of deals was also at a two-year low. The most notable deal was Abengoa Yield’s
$669 million acquisition of a 450 MW portfolio of solar thermal assets from
Abengoa.
Contents
Venture Capital and Private Equity......................................................................... 04
Mergers and Acquisitions......................................................................................... 09
Project and Asset Finance....................................................................................... 12
Public Markets........................................................................................................... 17
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Venture Capital and Private Equity
European Venture Capital and Private Equity investment: Q2.13 to Q2.15 ($ million)
800
700
50
n Private equity
(Development capital)
45
n Venture capital Late stage (Series D+)
40
n Venture capital Early growth (Series A to C)
600
— Number of deals
500
30
400
25
20
300
Number of deals
Deal value ($ million)
35
15
200
10
100
5
0
0
Q2.13
Q3.13
Q4.13
Q1.14
Q2.14
Average quarterly VC/PE investment Q2.13 to Q2.15
Q3.14
Q4.14
Q1.15
Q2.15
($ million)
Venture Capital (early-stage)
150.7
Venture Capital (late-stage)
67.6
Private Equity (development capital)
Average deal size Q2.13 to Q2.15
Venture Capital (early-stage)
158.4
($ million)
5.2
Venture Capital (late-stage)
34.7
Private Equity (development capital)
50.3
Source: Clean Energy Pipeline
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Venture Capital and Private Equity
Q2.15: Top five Venture Capital and Private Equity deals
1
Aledia SA
Country: France
$31 million
Sector: Energy Efficiency
Investor: Braemar Energy Ventures, Demeter Partners SA, Sofinnova Partners, IKEA
GreenTech AB, CEA Investissement SA, Valeo SA, Bpifrance (Banque Publique
d’Investissement)
2
CIMV
Country: France
$22 million
Sector: Biofuels
Investor: Undisclosed
3
Crocus Technology
Country: France
$21 million
Sector: Advanced Materials & Technologies
Investor: IDInvest Partners, Kreos Capital, NanoDimension AG, Sofinnova Partners,
Ventech, CEA Investissement SA, RUSNANO, Innovation Ventures
4
Beyond Surface Technologies
Country: Switzerland
$20million
Sector: Advanced Materials & Technologies
Investor: Patagonia
5
Evrythng
Country: UK
$8 million
Sector: Energy Efficiency
Investor: Cisco Systems Inc., Samsung Venture Investment Corp., Dawn Capital LLP,
Atomico Ventures, BHLP LLC
Source: Clean Energy Pipeline
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Venture Capital and Private Equity
European Private Equity buyouts: Q2.13 to Q2.15
7.0
n Deals of over $100 million
70
n Deals of under $100 million
— Number of deals
60
5.0
50
4.0
40
3.0
30
2.0
20
1.0
10
0.0
Number of deals
Deal value ($ billion)
6.0
0
Q2.13
Q3.13
Q4.13
Q1.14
Q2.14
Q3.14
Q4.14
Q1.15
Q2.15
Average private equity buyout investment: Q2.13 to Q2.15
Average quarterly PE buyout volume ($ billion)
3.0
Average number of deals per quarter
45
Average PE buyout transaction value ($ million)
Source: Clean Energy Pipeline
65.6
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Venture Capital and Private Equity
Q2.15: Top five investments by Private Equity funds, infrastructure funds and
institutional investors.
1
Abengoa SA’s solar thermal portfolio
(450MW)
$669 million
Country: Spain
Sector: Solar
Investor: Abengoa Yield plc
2
Fred. Olsen Renewables’ onshore wind
portfolio (433MW)
$388 million
Country: UK
Sector: Wind
Investor: The Renewables Infrastructure Group Ltd. (TRIG)
3
Michael Henriksen Holding A/S
Country: Denmark
$205 million
Sector: Recycling & Waste
Investor: Agilitas Partners
4
PNE WIND UK
Country: UK
$141 million
Sector: Wind
Investor: Brookfield Asset Management Inc.
5
Treia and Oria solar plants (29.1MW)
Country: Italy
Investor: Capital Stage AG
Note: This table includes investments by institutional investors
Source: Clean Energy Pipeline
$113 million
Sector: Solar
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Venture Capital and Private Equity
European Venture Capital investment by sector
Solar
n Q2.15
n Q1.15
Green Transportation
n Q2.14
Biofuels
Advanced Materials
& Technologies
Energy Efficiency
0
50
100
150
200
250
300
Deal value ($ million)
European Venture Capital investment by country
n Q2.15
Germany
n Q1.15
n Q2.14
UK
Switzerland
France
0
50
100
150
Deal value ($ million)
Source: Clean Energy Pipeline
200
250
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Mergers and Acquisitions
n Deals of over $500 million
European M&A activity: Q2.13 to Q2.15
n Deals of under $500 million
12.0
180
— Number of deals
160
10.0
140
120
100
6.0
80
Number of deals
Deal value ($ billion)
8.0
60
4.0
40
2.0
20
0
0.0
Q2.13
Q3.13
Q4.13
Q1.14
Q2.14
Q3.14
Q4.14
Q1.15
Q2.15
Clean Energy Pipeline calculates M&A activity based on announced transactions within
each quarter.
Average M&A investment: Q2.13 to Q2.15
Average quarterly M&A deal volume ($ billion)
6.3
Average number of deals per quarter
130
Average M&A transaction value ($ million)
Source: Clean Energy Pipeline
48.5
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Mergers and Acquisitions
European M&A activity by sector
Energy Storage
n Q2.15
Biomass
n Q1.15
n Q2.14
Recycling & Waste
Solar
Wind
0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
Deal value ($ billion)
European M&A activity by country
n Q2.15
Italy
n Q1.15
n Q2.14
Germany
France
Spain
UK
0
0.5
1.0
1.5
Deal value ($ billion)
Source: Clean Energy Pipeline
2.0
2.5
3.0
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Mergers and Acquisitions
Q2.15: Top five European M&A transactions
1
2
3
4
Target: Abengoa SA’s solar thermal portfolio (450MW)
Acquirer: Abengoa Yield plc
$669 million
Country: Spain
Sector: Solar
Target: Fred. Olsen Renewables’ onshore wind portfolio (433MW)
Acquirer: The Renewables Infrastructure Group Ltd.
$388 million
Country: UK
Sector: Wind
Target: Gecal SA
Acquirer: Gas Natural SDG SA
$295 million
Country: Spain
Sector: Wind
Target: Michael Henriksen Holding A/S
Acquirer: Agilitas Partners
Country: Denmark
5
$205 million
Sector: Recycling & Waste
Target: PNE WIND UK
Acquirer: Brookfield Asset Management Inc.
$160 million
Country: UK
Sector: Wind
* The deal value is estimated by Clean Energy Pipeline
Source: Clean Energy Pipeline
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Project and Asset Finance
European Project Finance deal volume: Q2.13 to Q2.15
20
n Northern Europe
n Central & Eastern Europe
18
n Southern Europe
n Western Europe
16
Deal value ($ billion)
14
12
10
8
6
4
2
0
Q2.13
Q3.13
Q4.13
Source: Clean Energy Pipeline
Q1.14
Q2.14
Q3.14
Q4.14
Q1.15
Q2.15
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Project and Asset Finance
European Project Finance - Top five countries
Q2.14
Total: $4.9 billion
Spain 0%
Italy
22%
UK
42%
France
6%
Germany
30%
Total: $11.2 billion
Q1.15
Italy 11%
Spain <1%
France 2%
UK
63%
Germany
24%
Total: $12.1 billion
Q2.15
Italy 3%
France 5%
Spain 0%
Germany
27%
UK
65%
Source: Clean Energy Pipeline
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Project and Asset Finance
European Project Finance - Top sectors
Q2.14
Total: $12.4 billion
Biomass 13%
Solar PV
16%
Onshore wind
38%
Offshore wind
33%
Total: $13.2 billion
Q1.15
Biomass
18%
Solar PV
32%
Onshore
wind 25%
Offshore wind 25%
Total: $14.1 billion
Q2.15
Biomass 4%
Solar PV 8%
Offshore wind
55%
Onshore
wind 33%
Source: Clean Energy Pipeline
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Project and Asset Finance
Q2.15: Top five European Project Finance transactions
1
2
UK - Offshore wind
Project
Race Bank (580MW)
Equity Provider
DONG Energy A/S
Debt Provider
-
GERMANY - Offshore wind
Project
$2,600.0 million
$2,108.0 million
Veja Mate (400MW)
Equity Provider Siemens Financial Services / Copenhagen Infrastructure Partners /
Highland Group Holdings
Debt Provider
3
Deutsche Bank / KfW Bankengruppe / Natixis / Banco Santander
/ Commerzbank / Sumitomo Mitsui Banking Corporation / Eksport
Kredit Fonden
UK - Offshore wind
Project
$2,044.0 million
Rampion (400MW)
Equity Provider E.ON Climate & Renewables / UK Green Investment Bank
Debt Provider
4
-
TURKEY - Geothermal
Project
$970.0 million
Efeler (123.3MW)
Equity Provider Guris Holding.
Debt Provider
5
European Bank for Reconstruction and Development / Black Sea
Trade and Development Bank / Turkiye Is Bankasi / Turkiye Sinai
Kalkinma Bankasi
UK - Onshore wind
Project
Kilgallioch (239MW)
Equity Provider Scottish Power Renewables
Debt Provider
-
Source: Clean Energy Pipeline
$613.0 million
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Project and Asset Finance
Q2.15: European Project Finance by sector
as a percentage of total deal volume / total number of deals
Wind
Solar
Biomass
n % of total deal value
n % of total numbers of deals
Energy Efficiency
Other
0
Source: Clean Energy Pipeline
20%
40%
60%
80%
100%
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Public Markets
Quarterly breakdown - Number of public market deals: Q2.13 to Q2.15
1Q14
2Q14
3Q14
4Q14
1Q15
5 Deals
9 Deals
11 Deals
6 Deals
11 Deals
12 Deals
9 Deals
11%
14%
7 Deals
13%
9 Deals
13%
2Q15
2Q15
12 Deals
14%
1Q15
1Q15
4Q14
4Q14
3Q14
11 Deals
3%
3Q14
6 Deals
23%
2Q14
11 Deals
2Q14
1Q14
- number of public market deals (2Q13 to 2Q15)
- public markets activity as a percentage of total amount raised (2Q13 to 2Q15)
1Q14
9 Deals
4Q13
5 Deals
4Q13
3Q13
3Q13
Quarterly breakdown
Quarterly breakdown
2Q15
4Q13
- number of public market deals (2Q13 to 2Q15)
3Q13
Quarterly breakdown
7 Deals
8%
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
1Q15
2Q15
Quarterly breakdown
breakdown - Analysis
percentage
contribution
of totaloffunds
to(2Q13
Q2.15 to 2Q15)
Quarterly
- publicofmarkets
activity
as a percentage
total raised:
amountQ2.13
raised
11%
14%
23%
3%
13%
14%
13%
8%
Please note:
No European clean energy companies raised funds on the public markets in Q2.13
Source: Clean Energy Pipeline
Europe > Middle East > Asia
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© Taylor Wessing LLP 2015
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