According to reports, venture capital (VC) funding in the wind sector was slightly lower in 2012 as compared to 2011. The total amount was nearly $315 million in 22 deals, according to a report by Mercom Capital Group, llc, a global clean energy communications and consulting firm.
While venture capital funding into new technology companies was sparse, it does not indicate a lack of innovation in the sector as a lot of large manufacturers with their own research and development (R&D) divisions spend millions of dollars to improve efficiencies and come up with new designs and innovations,” said Raj Prabhu, managing partner of Mercom Capital Group.
For a sector still dependent on subsidies, there is still a lot of room for investments in new designs and technologies that reduce costs and increase efficiencies,” he said.
The top deal in 2012 was $183 million raised by Element Power, a developer, owner and manager of wind and solar projects in United States, South America and Europe. Other deals that made up the top 5 included: $21.5 million raised by Mainstream Renewable Power, a developer of renewable energy and offshore wind projects, $20.2 million raised by ReGen Powertech, a wind turbine maker, $18.6 million raised by Leap Green Energy, an independent power producer, and $15.3 million raised by Trishe Developers, a wind power infrastructure company.
Mercom tracked approximately $14 billion in 71 announced large-scale project funding deals in 2012. Of these, $4.2 billion in 22 deals came in the fourth quarter. In comparison, large-scale project funding announcements in 2011 came to approximately $11 billion in 52 deals.