Infrastructure Wind Power Transactions – July 2014

by Julia Goodall

  • 14 Jul 2014
  • INF
  • NR

Renewable energy has emerged as a significant sector within the infrastructure industry in recent years and, within this space, wind power has been particularly prominent, accounting for around 16% of the total 5,500 infrastructure transactions completed since 2007. The annual number and estimated aggregate value of deals completed within the wind power space has increased considerably between 2007 and present. In 2007, 106 wind power-based deals were completed with an estimated aggregate deal value of $28.7bn. 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.

2012 saw wind power deal transactions reach an all-time high in terms of estimated aggregate deal value, with 144 transactions representing an aggregate of $60bn. 2013 witnessed the largest number of completed transactions in a calendar year, with 180 deals being completed, representing $54.1bn in estimated aggregate deal value. 2014 to date has also seen a promising start, with 58 wind power-related deals having been completed with an estimated aggregate deal value of $5.7bn. The average deal size for wind power transactions has also increased from $235mn per deal in 2009 to $354mn in 2012. 2013 saw a slight decrease in average size to $301mn, but this figure may improve slightly as more deals continue to come to light. Between the years 2011 and 2014 YTD, deals valued at $500mn or less accounted for the majority of transactions completed, representing 80% of wind power-based deals completed in 2011 and 84% of these deals completed in 2014 YTD.

In terms of regions, Europe is home to a considerable portion of wind power-specific deals, accounting for 60% of transactions completed within the sector between 2007 and 2014 YTD. North America was the next most prominent region, representing 30% of transactions completed in the same period, with Asia and countries outside of these three regions accounting for 4% and 6% of wind power-based transactions in the period 2007-2014 YTD respectively.

Notable deals that have taken place in the last 12 months within the wind power sector include DONG Energy’s acquisition of Gode Wind Farm I, a 330 MW wind farm located approximately 45 km off the German coast in the North Sea, in a deal worth €1.247bn, and CDP Capital - Private Equity Group’s acquisition of a 25% stake in the London Array Wind Farm, a 630MW wind power facility located 20km from the Kent and Essex coasts, in a deal worth £644mn.

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