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VC funding in wind energy sector fell in Q1 2014: Mercom Capital Group

According to reports, Venture capital (VC) funding in the wind energy sector globally fell to $32 million during the first quarter of 2014 compared to $93 million in the previous quarter.

Total funding in the wind sector, including VC funding, public market financing, debt financing and announced project funding deals, came in at $10.5 billion in Q1 of 2014, a report by Mercom Capital Group, a global clean energy communications and consulting firm, said.

The largest VC deal in the wind sector in the first quarter was by 3sun Group, a company that installs and maintains offshore wind turbines, which raised $16.7 million from Business Growth Fund, the report said.Announced large-scale project funding in Q1 2014 totaled $7.2 billion in 29 deals compared to $4.9 billion in 32 deals in Q4 of 2013. There were a total of 20 investors that participated in multiple project funding deals in this quarter. The top project funding deal in this quarter was the $1.47 billion received by Typhoon Offshore for its 600 MW project, the report said.

There were six M&A transactions in Q1 2014, one of which disclosed amounts totaling $419 million. Project acquisitions in the first quarter totaled $3.8 billion compared to $2 billion in Q4 2013, the report said.

The top five largest project acquisitions by disclosed amount were led by the investment group La Caisse, which purchased a 25% share of the 630 MW London Array 1 wind project for $1.1 billion.

That was followed by Brookfield Renewable Energy Partners’ purchase of the 321 MW Bord Gais Energy wind project portfolio for $960 million, Green Investment Bank and Marubeni Corporation’s 50% stake in the 210 MW Westermost Rough offshore wind project for $832 million, Copenhagen Infrastructure Partners’ purchase of a 67% economic stake in a 900 MW offshore grid connection for wind projects for $526 million and the Green Investment Bank’s purchase of a 10% stake in the 576 MW Gwynt y Mor offshore wind project for $366 million.

Of the disclosed project acquisitions, there were nine project developers that acquired wind projects, 10 investment funds, two independent power producers and two utilities.

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