According to reports, despite the global slowdown, merger and acquisition activity in the wind sector seems to have been rising. According to Mercom Capital Group, a global clean energy communications and consulting firm, the sector witnessed an investment of 45 GW in installations during an uncertain year on the policy front.
“Most of the funding activity this quarter went towards project funding and project acquisitions. In a significant development showing the emergence of wind energy, in the United States, wind became the most installed energy generation source in 2012,” the report said.
In India, funding and M&A activity in wind energy sector in Q1 2013 was active with transactions in project, debt and other funding as well as project M&A. Notable Indian transactions includes Continuum Wind Energy, a developer of wind projects in India and Asia receiving a $164 million loan from State Bank of India for its 175 MW wind project in Maharashtra
Gujarat Venture Finance picked up an equity stake in a SPV ( Special Purpose Vehicle) of UK based SITAC group, formed to execute a 50 MW wind project of ~$47 million in Gujarat.
On the debt funding front, Suzlon raised $647 million in a bond issue by State Bank of India and JPMorgan Chase
An affiliate of the government of Singapore Investment Corp. (GIC) has agreed to invest ~$150 million into Greenko’s Mauritius division – funds that will be deployed into Indian utility-scale wind and hydro projects.
In the project M&A front Mytrah Energy’s acquisition of 59.75 MW of wind projects in Tamil Nadu and Maharashtra for an undisclosed amount was a big development. Bharat Light & Power’s acquisition of 150 MW wind projects in Gujarat from DLF for $53 million was also during the same period.