Preqin’s Infrastructure Deals module on Infrastructure Online includes extensive information on over 8,100 completed transactions in infrastructure assets globally since 2006. These deals encompass a wide variety of investors, ranging from infrastructure fund managers and direct institutional investors to industry players such as developers, contractors and other industry-specific trade investors. Renewable energy, and in particular wind power, is a very prominent industry for investment; wind power alone accounts for 17% of all infrastructure transactions completed since 2006.
As shown in the chart above, the annual number and estimated aggregate value of deals* completed within the wind power space has increased dramatically since 2006. 2012 saw wind power transactions reach an all-time high in terms of estimated aggregate deal value, with 174 transactions worth an estimated aggregate value of $88bn, an increase of 726% from 2006. Although 2014 has only 157 recorded transactions to date, representing $47bn in estimated aggregate capital, these figures are expected to rise substantially as more deals come to light in the coming months.
Accompanying the rise in transactions, there has also been healthy growth in average deal size for wind power assets since 2006; the average size of wind power-based transactions increased from $123mn in 2006 to $508mn in 2012. 2014 saw a decrease in average size to $298mn, but this figure may also improve as more deals continue to come to light.
Sixty-four percent of wind power deals since 2006 were at the greenfield stage of development when the deal was struck, the result of a growing global demand for alternative sources of energy and therefore an increase in investment in new-build wind power projects. A further 32% were at the secondary stage of development and the remaining 4% at the brownfield stage. Europe is home to the vast majority of wind power-specific transactions (60%), with North America as the next most prominent region (30%).
There have been several notable deals involving wind power assets in the last 12 months. In the UK, E.ON acquired a 100% stake in Rampion Offshore Wind Farm, a portfolio of 175 wind turbines located off the Sussex coast, in a deal worth £2bn. Additionally, a consortium of investors including African Infrastructure Investment Managers and International Finance Corporation (IFC) acquired Kipeto Wind Farm, a 100MW wind farm in the Maasai land, Kenya.
*Preqin’s estimated deal value is calculated using the total reported value of all deals where this is known, plus the average deal value for transactions where a deal size has not been disclosed.