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Follow on Google News | Cleantech Sectors of Solar, Wind and Smart Grid All Up in Venture Capital (VC) Investments in 2010Smart Grid Has its Best Year; Solar Slightly Up from 2009.
By: Mercom Capital Group “Considering 2009 was a recession year, solar was only slightly up in 2010. After a good second quarter, VC investments trended down in Q3 and Q4,” commented Raj Prabhu, Managing Partner at Mercom Capital Group. 2010 VC activity came in at $1.67 billion in 65 transactions, up 18 percent over 2009 ($1.4 billion). There was increased activity in large-scale solar project funding as well as debt and other funding types, pointing to an ease in the availability of credit after a challenging 2009. A total of 148 different investors participated in VC funding rounds in 2010. Credit facilities provided to Chinese companies by Chinese banks came in at an eye popping $34 billion, dwarfing all other transactions in solar in 2010. Solar M&A transactions in 2010 totaled $2 billion in 44 deals. Solar project M&A activity amounted to another $450 million in 18 deals out of which only four were disclosed. Large-scale project funding came in at $4.1 billion in 2010, while debt and other funding types logged in $36 billion of which $34 billion were in the form of credit facilities provided by Chinese Government Banks to Chinese companies, which included LDK Solar, Yingli Solar, JA Solar, Suntech and Trina Solar. “It was a banner year for Smart Grid in terms of VC funding and M&A activity, with VC funding almost doubling compared to 2009. 87 different investors participated in VC rounds in 2010,” further commented Raj Prabhu. VC funding in the Smart Grid sector was at its highest compared to the previous two years with $769 million in 51 deals, an 88 percent increase over 2009 ($410 million). M&A activity was also robust for the Smart Grid sector in 2010 with 40 transactions. Only four were disclosed for a total of $1.3 billion, of which $1 billion was the acquisition of Ventyx by ABB. The Wind sector also saw a 40 percent increase in VC and PE activity in 2010 with $277 million invested compared to $198 million in 2009. Large offshore wind projects boosted project funding activity to over $9 billion in 2010. M&A transactions in the Wind sector came to $1.3 billion in 23 deals, with the $860 million acquisition of John Deere Renewables by Exelon making up the bulk of it. According to the Department of Energy, $2.5 billion was spent in the fourth quarter of 2010 compared to $3.04 billion in Q3. DOE has spent a total of $10.39 billion to date out of the $32 billion funding commitments from the Recovery Act. Download a copy of the funding reports for all sectors at: http://www.mercomcapital.com/ Download all funding transactions for Q4 at: http: http://www.mercomcapital.com/ Download hi-resolution charts and graphs at: Solar 2010: http://www.mercomcapital.com/ Smart Grid 2010: http://www.mercomcapital.com/ Wind 2010: http://www.mercomcapital.com/ About Mercom Capital Group Mercom Capital Group, llc is a global clean energy market intelligence, consulting and communications firm with offices in the US and India. Mercom’ Public Relations Contact: Mercom Communications India Tel: +91 80 2234 2856 Email: info@mercomindia.com Contact: Mercom Capital Group Austin, TX 1.512.215.4452 info@mercomcapital.com http://www.mercomcapital.com End
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