GLOBAL TRENDS IN CLEAN ENERGY INVESTMENT

GLOBAL TRENDS IN CLEAN ENERGY INVESTMENT

Rebound in clean energy investment

in 2014 beats expectations

Luke Mills

09 January 2015

1

CONTENTS

8 January 2015

1. Annual clean energy investment overview

2. Quarterly trends in clean energy: new investment

3. Quarterly trends in clean energy: funds in circulation

4. Clean energy indexes

ANNUAL CLEAN ENERGY INVESTMENT OVERVIEW

3

Note: Total values include estimates for undisclosed deals. AF = asset finance,

SDC = small distributed capacity. Source: Bloomberg New Energy Finance

8 January 2015

CLEAN ENERGY INVESTMENT TYPES & FLOWS 2014 ($BN)

Technology

development

Equipment

manufacturing/ scale-up

Projects

Asset and company

mergers, acquisitions,

refinancing, buy-outs

etc.

+2

+15

+14 +3

+19 53 -4

+171

+17

+74 310

+75 385

VC Corp RD&D Gov R&D PE Public markets new equity

Total company investment

Re-invested Renewable energy AF

Digital energy & storage AF

SDC Total investment

M&A/buy-outs etc.

Total transactions

4

Note: Total values include estimates for undisclosed deals. Includes corporate and government R&D, and spending for

digital energy and energy storage projects (not reported in quarterly statistics). Source: Bloomberg New Energy Finance

8 January 2015

NEW INVESTMENT IN CLEAN ENERGY 2004-14 ($BN)

$60bn

$88bn

$128bn

$175bn

$205bn $206bn

$272bn

$318bn

$294bn

$268bn

$310bn

46%

46%

36%

17%

0.5%

32%

17%-7%

-9%

16%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

5

Note: Total values include estimates for undisclosed deals. Includes corporate and government R&D, and spending for

digital energy and energy storage projects (not reported in quarterly statistics). Source: Bloomberg New Energy Finance

8 January 2015

NEW INVESTMENT IN CLEAN ENERGY BY REGION 2004-14 ($BN)

$28bn $39bn$53bn

$75bn$90bn $91bn

$124bn $132bn$109bn

$74bn $78bn$13bn

$23bn

$44bn

$59bn

$63bn$50bn

$69bn

$86bn

$71bn

$68bn$78bn

$19bn

$26bn

$31bn

$41bn

$52bn $65bn

$79bn

$99bn

$113bn

$126bn

$154bn

46%

46%

36%

17%

0.5%

32%

17%

-7%

-9%

16%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

EMEA AMER APAC

6

Notes: ‘Sovereign, supranational & agency’ includes bonds issued by issued by international financial institutions,

agencies and provinces to finance green projects. ‘Labelled corporate’ includes bonds issued by companies and explicitly

labelled as green. ‘US municipal’ refers to bonds issued by US municipalities to finance green projects. ‘Project’ refers to

project bonds backed by renewable energy projects. ‘ABS’ refers to asset-backed securities whose cashflows come from

a portfolio of underlying receivables such as loans, leases and PPAs associated with green projects. Source: Bloomberg New Energy Finance

ANNUAL HISTORICAL GREEN BOND ISSUANCE, BY TYPE, 2007-14 ($BN)

0

5

10

15

20

25

30

35

40

2007 2008 2009 2010 2011 2012 2013 2014

ABS

Project

US municipal

Labelled corporate

Supranational,sovereign & agency

QUARTERLY TRENDS IN CLEAN ENERGY: NEW INVESTMENT

8

Note: Total values include estimates for undisclosed deals. Excludes corporate and government R&D, and spending for

digital energy and energy storage projects (reported in annual statistics only). Source: Bloomberg New Energy Finance

8 January 2015

NEW INVESTMENT IN CLEAN ENERGY Q1 2004-Q4 2014 ($BN)

9.3

12.2

9.010.6

13.2

20.5

15.7

20.621.8

27.323.2

37.1

27.8

35.4

37.6

52.4

35.9

51.9

46.044.4

30.4

50.6

47.6

44.8

50.4

56.2

58.6

68.9

57.3

77.7

73.8

64.8

54.0

71.6

60.2

64.4

43.1

64.6

54.8

61.559.3

72.1

65.1

67.6

Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Four quarter running average

9



8 January 2015

NEW INVESTMENT IN CLEAN ENERGY BY REGION Q1 2004-Q4 2014 ($BN)

9.312.2

9.010.6

13.2

20.5

15.7

20.621.8

27.3

23.2

37.1

27.8

35.437.6

52.4

35.9

51.9

46.044.4

30.4

50.647.6

44.8

50.4

56.258.6

68.9

57.3

77.7

73.8

64.8

54.0

71.6

60.2

64.4

43.1

64.6

54.8

61.559.3

72.1

65.1

67.6


2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

EMEA AMER APAC

10



8 January 2015

NEW INVESTMENT IN CLEAN ENERGY IN EUROPE Q1 2004-Q4 2014 ($BN)

4.4

7.9

4.1

5.46.0

10.9

7.48.27.8

13.9

7.9

16.0

9.6

16.914.2

24.4

13.9

23.2 22.3

19.9

12.4

27.4

22.3

17.0

22.9

25.4

29.431.0

27.3

33.9

29.8

26.5

21.5

23.8

19.0

22.3

15.9

13.0

13.3

11.7

13.9 13.1

9.2

17.8


2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014


11



8 January 2015

NEW INVESTMENT IN CLEAN ENERGY IN THE US Q1 2004-Q4 2014 ($BN)

1.21.60.8

1.72.0

4.0

2.13.6

6.36.46.5

10.2

7.37.5

9.4

11.3

9.610.9

8.37.3

3.3

8.9

6.55.66.6

9.5

7.3

12.9

6.1

16.7

18.6

10.09.2

14.7

7.97.2

4.0

9.8

6.6

16.1

9.5

12.9

10.2

8.2


2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014


12



8 January 2015

NEW INVESTMENT IN CLEAN ENERGY IN CHINA Q1 2004-Q4 2014 ($BN)

0.60.30.60.91.42.1

1.52.51.92.1

3.13.13.13.9

5.2

3.53.8

7.86.76.4

8.07.4

10.3

12.7

7.5

9.8

11.010.1

10.1

14.011.8

11.6

10.6

19.9

16.4

14.4

8.4

18.617.7

15.7

14.4

25.5

24.3

17.0


2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014


13



8 January 2015

NEW INVESTMENT IN CLEAN ENERGY BY SECTOR Q1 2004-Q4 2014 ($BN)

9.312.2

9.010.6

13.2

20.5

15.7

20.6

21.8

27.3

23.2

37.1

27.8

35.4

37.6

52.4

35.9

51.9

46.044.4

30.4

50.647.6

44.8

50.4

56.258.6

68.9

57.3

77.7

73.8

64.8

54.0

71.6

60.2

64.4

43.1

64.6

54.8

61.559.3

72.1

65.167.6


2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Wind Solar Biofuels Other

14



8 January 2015

EMEA NEW INVESTMENT IN CLEAN ENERGY BY SECTOR Q1 2004-Q4 2014 ($BN)

4.4

8.2

4.25.5

6.3

11.1

7.58.4 7.9

14.0

8.3

16.6

10.0

17.4

14.8

25.5

14.4

23.623.0

20.7

12.8

27.9

22.6

17.5

24.1

25.9

29.8

33.1

28.5

34.5

30.0

27.3

22.2

24.6

21.5

28.7

16.717.1

14.2

14.616.0

15.5

11.3

23.7


2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Wind Solar Other

15



8 January 2015

AMER NEW INVESTMENT IN CLEAN ENERGY BY SECTOR Q1 2004-Q4 2014 ($BN)

1.62.01.82.42.8

5.23.9

6.2

8.38.48.8

13.311.2

10.3

13.5

17.3

12.4

15.8

11.9

13.7

5.5

12.0

9.910.511.7

14.7

10.9

18.9

10.4

20.2

22.4

17.4

12.7

18.3

12.412.6

6.7

14.7

10.9

20.1

14.8

18.8

14.514.9


2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Wind Solar Other

16



8 January 2015

APAC NEW INVESTMENT IN CLEAN ENERGY BY SECTOR Q1 2004-Q4 2014 ($BN)

3.32.0

3.02.64.14.24.3

6.05.65.0

6.17.36.6

7.89.39.69.0

12.511.1

10.0

12.110.7

15.1

16.8

14.615.7

17.916.9

18.5

22.921.3

20.119.1

28.7

26.3

23.2

19.7

32.8

29.8

26.7

28.6

37.7

39.3

29.1


2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Wind Solar Other

17

*Asset finance adjusted for re-invested equity



8 January 2015

NEW INVESTMENT IN CLEAN ENERGY BY ASSET CLASS Q1 2004-Q4 2014 ($BN)

9.312.2

9.010.6

13.2

20.5

15.7

20.621.8

27.3

23.2

37.1

27.8

35.437.6

52.4

35.9

51.9

46.044.4

30.4

50.647.6

44.8

50.4

56.258.6

68.9

57.3

77.7

73.8

64.8

54.0

71.6

60.2

64.4

43.1

64.6

54.8

61.559.3

72.1

65.167.6


2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Asset finance* Public markets VC/PE Small distributed capacity

18

Source: Bloomberg New Energy Finance

8 January 2015

PUBLIC MARKET NEW INVESTMENT IN CLEAN ENERGY Q1 2004-Q4 2014 ($BN)

0.20.10.00.40.80.90.7

2.61.8

4.3

1.0

3.23.23.83.8

13.2

1.1

6.9

2.8

1.00.4

4.84.0

5.9

1.4

3.33.6

5.5

4.54.4

1.51.00.8

1.51.90.61.0

3.8

2.1

5.4

6.4

5.25.3

1.7


2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014


19


8 January 2015

TOP PUBLIC MARKET TRANSACTIONS OF THE QUARTER Q4 2014

Organisation Stock exchange Sector Type of

transaction

New equity

raised

Total

offering size

CS Wind Korea Stock

Exchange (KOSPI) Wind IPO $231.9m $231.9m

Huaneng Renewables Hong Kong Stock

Exchange (HKEX) Wind Secondary $225.3m $225.3m

Greencoat UK Wind

PLC/Fund London Stock Exchange Wind Secondary $200.2m $200.2m

Bluefield Solar Income

Fund London Stock Exchange Solar Secondary $192.3m $192.3m

NextEnergy Solar Fund London Stock Exchange Solar Secondary $149.2m $149.2m

20

Note: Total values include estimates for undisclosed deals. Source: Bloomberg New Energy Finance

8 January 2015

VC/PE NEW INVESTMENT IN CLEAN ENERGY Q1 2004-Q4 2014 ($BN)

0.20.60.30.30.60.70.40.81.11.51.8

1.22.1

1.51.82.62.4

3.1

4.2

2.6

1.3

1.82.2

1.4

2.82.81.6 1.92.02.32.01.9 1.81.9

1.21.5 1.51.1 0.60.9 1.2 1.5 1.0 1.1


2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014


21


8 January 2015

TOP VC/PE TRANSACTIONS OF THE QUARTER Q4 2014

Organisation Country Sector Type of transaction Value

Sunnova Energy United States Solar PE Expansion Capital $250.m

BluEarth Renewables Canada Wind PE Expansion Capital $71.4m

Lanzatech NZ New Zealand Biofuels VC Late Stage $60.m

Gebr Schmid Germany Solar PE Expansion Capital $40.m

Digital Lumens United States Efficiency: Built

Environment VC Late Stage $23.m

22

Note: Total values include estimates for undisclosed deals. Excludes spending for digital energy and energy storage

projects (reported in annual statistics only). Source: Bloomberg New Energy Finance

8 January 2015

ASSET FINANCING FOR NEW BUILD RENEWABLE ENERGY ASSETS Q1 2004-Q4 2014 ($BN)

6.89.4

6.57.7

9.5

16.3

12.1

14.716.7

19.218.4

30.3

20.2

27.2

29.2

33.8

27.5

37.4

34.835.7

20.9

36.1

33.3

29.7

32.2

36.5

39.1

46.8

32.3

53.051.9

44.1

31.9

49.1

38.4

43.7

27.3

46.6

38.7

42.0

34.6

47.9

40.9

47.3


2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014


23


8 January 2015

TOP ASSET FINANCE TRANSACTIONS OF THE QUARTER Q4 2014

Project name Country Sector Type of transaction Capacity Value

Dudgeon Offshore Wind Farm United Kingdom Wind Balance Sheet 402MW $2573m

Wikinger Offshore Wind Farm Germany Wind Balance Sheet 350MW $1712m

Sandbank Offshore Wind

Farm Germany Wind Balance Sheet 288MW $1428m

Burbo Bank Offshore Wind

Farm Extension United Kingdom Wind Balance Sheet 258MW Undisclosed

Xina Solar One STEG Plant South Africa Solar Term loan 100MW $1010m

QUARTERLY TRENDS IN CLEAN ENERGY: FUNDS IN CIRCULATION

25

Note: Total values include estimates for undisclosed deals. Excludes spending for digital energy and energy storage

projects (reported in annual statistics only). Source: Bloomberg New Energy Finance

8 January 2015

FUNDS IN CIRCULATION IN CLEAN ENERGY Q1 2004-Q4 2014 ($BN)

2.93.3

1.6

4.04.5

8.47.1

12.6

9.0

10.9

5.6

14.0

9.5

14.7

18.6

21.9

18.3

11.8

14.4

17.5

12.3

17.7

15.9

20.1

16.8

11.6

13.7

19.7

12.2

18.1

29.4

20.8

19.2

15.1

12.0

25.3

20.3

18.0

16.2

16.7

18.4

18.9

21.3

16.6


2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014


26


8 January 2015

TOP TRANSACTIONS FOR FUNDS IN CIRCULATION Q4 2014

Organisation Country Sector Type of

transaction Acquirer Value

E.ON US Wind Portfolio

Enbridge Acquisition United States Wind Balance Sheet Enbridge $650m

Acciona Energia

Internacional Spain Wind

PE - Buy-out / corp

spinoff KKR & Co $540m

Pinyon Pines Wind Portfolio

Refinancing United States Wind

Term loan; Short term

facility (revolver/LOC) Berkshire Hathaway $406m

Enel Green Power France France Wind Equity (company) Boralex $344m

EDC Burgos Wind Farm

Portfolio Refinancing Philippines Wind Term loan Energy Development Corp $315m

27

Note: Total values include estimates for undisclosed deals Source: Bloomberg New Energy Finance

8 January 2015

CORPORATE M&A TRANSACTIONS IN CLEAN ENERGY Q1 2004-Q4 2014 ($BN)

1.21.00.92.1

1.4

5.5

2.0

4.54.73.5

2.7

3.63.74.8

7.2

9.3

7.6

3.1

5.5

3.5

5.4

3.0

6.2

8.27.3

3.74.6

6.2

3.4

7.6

16.6

8.8

5.4

2.92.2

3.14.74.74.9

2.6

6.6

3.1 3.6 2.4


2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014


28

Note: Total values include estimates for undisclosed deals Source: Bloomberg New Energy Finance

8 January 2015

RENEWABLE ENERGY ASSET ACQUISITIONS & REFINANCING Q1 2004-Q4 2014 ($BN)

1.41.70.6

1.51.71.5

2.8

6.5

3.94.0

2.4

8.9

3.2

6.9

9.810.8

9.9

6.26.9

12.3

6.7

12.7

8.79.7

8.17.1

7.89.17.8

10.0

11.311.0

12.711.0

9.0

21.1

15.2

10.410.5

13.2

10.7

14.0

16.6

13.2


2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014


CLEAN ENERGY INDEXES

30 8 January 2015

Note: Values as of 01 January 2015; NASDAQ and S&P 500 rebased to 100 on 1 Jan 2003 Source: Bloomberg New Energy Finance

NEX CLEAN ENERGY INDEX 2003–15 YTD

0

100

200

300

400

500

Jan 03 Jan 05 Jan 07 Jan 09 Jan 11 Jan 13 Jan 15

S&P 500NASDAQNEX

31 8 January 2015



40

60

80

100

120

140

160

180

200

Jan 12 Jul 12 Jan 13 Jul 13 Jan 14 Jul 14 Jan 15

S&P 500NASDAQNEX

32 8 January 2015



40

60

80

100

120

140

160

180

200

Jan 13 Apr 13 Jul 13 Oct 13 Jan 14 Apr 14 Jul 14 Oct 14 Jan 15

S&P 500NASDAQNEX

33 8 January 2015



80

90

100

110

120

130

Jan 14 Mar 14 May 14 Jul 14 Sep 14 Nov 14 Jan 15

S&P 500NASDAQNEX

34

Note: Values as of 01 January 2015; NASDAQ and S&P 500 rebased to 100 on 30 December 2005 Source: Bloomberg New Energy Finance

8 January 2015

NYSE BNEF REGIONAL CLEAN ENERGY INDEXES 2006-15 YTD

0

50

100

150

200

250

300

Jan 06 Jan 07 Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 Jan 14

NYSE BNEFAMER Index

NYSE BNEFASOC Index

NYSE BNEFEMEA Index

MSCI World &Emerging

0

500

1,000

1,500

2,000

2,500

3,000

Jan 06 Jan 07 Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 Jan 14 Jan 15

35

Note: Values as of 01 January 2015; NASDAQ and S&P 500 rebased to 1,000 on 30 December 2005 Source: Bloomberg New Energy Finance

8 January 2015

NYSE GLOBAL CLEAN ENERGY SECTOR INDEXES 2006-15 YTD

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Dec 05 Sep 06 Jun 07 Mar 08 Dec 08 Sep 09 Jun 10 Mar 11 Dec 11 Sep 12

NYSE BNEFWind Index

NYSE BNEFSolar Index

NYSE BNEFEST Index

MSCI World &Emerging

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Jan 06 Jan 07 Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 Jan 14 Jan 15

36

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COPYRIGHT AND DISCLAIMER

8 January 2015

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