Wind energy sector saw strong VC interest, M&A deals in ‘13

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India saw 14 major transactions with total deals valued over $600m

When it comes to wind energy, year 2013 turned out to be vibrant and strong in terms of VC funding, M&A transactions and debt funding — both in India and globally. In India alone there were 14 major transactions of various types with total deal value reaching well over $600 million. Globally, VC funding in the wind sector increased from $315 million in 2012 to $455 million in 2013 while total funding reached $28.1 billion, according to the latest report from Mercom Capital Group, a global clean energy consulting company.

Among the prominent wind sector transactions in India, ReNew Wind Power raised $135 million from Goldman Sachs; NSL Renewable Power raised $60 million from DEG; Asia Clean Energy, GS Power and Green Infra received $25 million from CDC. Green Infra also acquired a majority stake in TVS Energy, a subsidiary of TVS Motor, for an undisclosed amount. The Mercom study also pointed out that besides these VC fundings, there were quite a few instances of project financing in the wind sector. For instance, Continuum Wind Energy received a $164 million loan from SBI for its 175 MW wind project in Maharashtra, Orange Jaisalmer Wind Energy, an Orange Renewable Holding company, raised a loan of $36 million to finance the 50.4 MW wind power plant located in Rajasthan, NSL Renewable Power, a project developer, raised $30 million in equity investment from Asian Development Bank to support hydropower and wind power projects and Welspun Energy, a developer of renewable energy projects, secured a loan of over $22 million for its 20 MW wind project in Rajasthan.

Over and above these VC fundings, project financing and debt funding, there were at least six prominent M&A transactions in the wind energy sector. Bharat Light & Power acquired 150 MW of wind projects in Gujarat from DLF for $53 million, DLF, on its parts, has signed an agreement with Tulip Renewable Powertech, to sell the 34.5 MW Tamil Nadu project along with related assets, liabilities and long-term loans for $34.4 million, and the 33 MW Rajasthan wind mill will be sold to Violet Green Power for $9.5 million on similar terms.

Similarly, Continuum Wind Energy acquired DJ Energy and Uttar Urja Power Projects from Sravanthi Group totaling 178.7 MW, Mytrah Energy acquired of 59.75 MW of wind projects in Tamil Nadu and Maharashtra, Amplus Infrastructure Developers, a project development and consulting company, acquired a 42.5 MW wind power generation facility from VRL Logistics.

ritwikmukherjee@mydigitalfc.com

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