Wind power has become a noticeable source of investment within the infrastructure asset class over the past five years. Preqin’s Infrastructure Online deals module features extensive information on 420 new-build wind power projects completed globally since 2010, which represent a reported aggregate deal value of $62bn and an estimated aggregate deal value of $169bn*.
As shown in the chart above, Europe and North America make up the majority of global wind power development between 2010 and 2015. Within Europe, the UK accounts for 34% of all new-build wind power deals completed in this period, equating to 74 new projects. North American wind power is focused predominantly on investment in the US, with 79 new-build wind power transactions completed, representing 54% of all new greenfield wind power deals in the region.
A number of notable greenfield transactions have been completed within the wind power sector worldwide in 2010-2015 YTD. The two largest developments took place in the UK, comprising the £2bn Rampion Offshore 400MW Wind Farm in July 2014, and the €2.7bn Gwynt y Mor 576MW Wind Farm in June 2010. Other notable investments include the Shepherds Flat 845 MW Wind Farm, a major US project in April 2011 featuring a total investment size of $500mn, and the acquisition of Butendiek Offshore 288MW Wind in February 2013 for €1.4bn by a consortium of investors including wpd, Industry Pension Insurance, Marguerite Fund, Pensionskassernes Administration and Siemens.
Global investments in new wind power projects from year to year have been relatively steady between 2010 and 2015. In 2010 88 projects were initiated, with an average deal size of $266mn and an estimated aggregate deal value of $23bn. Comparatively, 2014 saw only 64 new projects financings with an estimated aggregate deal value of $24bn, raising the average deal value to $377mn. However, the number of new-build wind power deals in 2014 is likely to increase as more transactions come to light. With a diminishing supply of natural resources, the increasing global demand for alternative sources of energy is likely to drive an increase in the number of greenfield renewable energy projects in the coming years.
*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.