European wind energy funding rose to €51bn in 2017, up 9 per cent from the earlier 12 months.
City AM reviews a surge in undertaking and firm acquisitions for the rise as commerce physique WindEurope claimed wind vitality represented the biggest funding alternative within the vitality sector in 2017.
WindEurope printed a report, out at present, which examines investments in new belongings, refinancing transactions, mergers and acquisition at undertaking and company stage, public market transactions and personal fairness raised throughout the continent.
“Sector maturity and expertise competitiveness have introduced in additional traders as fairness companions in initiatives, specifically from the monetary companies business. These partnerships are key for energy producers who have to recycle capital to finance new belongings,” WindEurope mentioned.
It discovered mergers and acquisitions drove €14.4bn in funding exercise, up from simply €6.8bn in 2016. Company acquisition offers doubled in worth final 12 months because of the consolidation within the business.
Deal move in public capital markets was additionally up in 2017 to €7.6bn as corporations made use of the low rate of interest surroundings and liquidity within the monetary markets.
However, new asset financing, together with all infrastructure investments within the building of latest onshore and offshore wind farms, plunged 19 per cent to €22.3bn as a result of technological price reductions and decrease offshore wind investments.
Wind Europe mentioned 2017 was a document 12 months for brand spanking new capability financing, with 11.5 GW of latest energy potential reaching closing funding resolution (FID) throughout 200 initiatives in Europe.
The overwhelming majority of these had been in Germany and the UK, which collectively accounted for half of the brand new FIDs introduced final 12 months.