Cleantech Investor

First published in Cleantech magazine, Volume 6, Issue 2. Copyright Cleantech Investor Ltd

By Nigel Hawkins

The renewable generation sector has always been at the mercy of politicians, but perhaps never more so than is the case presently, with subsidies being slashed seemingly at a stroke.

Central to that trend is the plight of the eurozone, which remains critical. To be sure, the latest bail-out for Greece has eased some of the pressures that were even more intense before Christmas. The fact remains, though, that many experts expect Greece to leave the eurozone – one way or another – and that other member states, such as Portugal and Ireland, will continue to face massive economic pressures.

Published in: 2011 - A Review of Cleantech Equity Deals, January 2012

Under the shadow cast by the Fukushima nuclear accident early in the year, consolidation gathered pace in the utility sector in 2011. With stock markets at depressed levels, in Europe Iberdrola and EDF each acquired their respective listed renewable energy subsidiaries – and the cash-strapped Portuguese Government sold a stake in EDP to China Three Gorges. In the US, although not strictly renewable, energy deals announced included the US$16.2 billion plan to acquire Progress Energy (PGN) by Duke Energy Corp (DUK). That deal failed to gain approval before the end of 2011, but others were approved by the regulators – significantly, sometimes in exchange for commitments to invest in renewable energy. This was the case in the US$8.05 billion takeover by Exelon Corp (EXC) of Constellation Energy Group Inc. (CEG), which agreed to develop 180MW of wind and solar generating capacity.

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Consulting Editors, Matt Bonass and Michael Rudd; featuring a preface by Governor Gray Davis, 37^th governor of California; published by Globe Law and Business.

by Anne McIvor

‘Renewables – A Practical Handbook’ is the impressive result of a project steered by MattBonass and Michael Rudd. When Matt invited me to review the fruits of their labours, I must admit that my heart sank, just a little. Both Matt and Michael are lawyers, so I expected a legal text book. But  I agreed to read it and – thankfully – I was in for a very pleasant surprise.

This is a genuinely fascinating read for anyone involved in – or considering entering into – the clean technology and renewable energy industries, either as an operator, investor or advisor. Chapters which do focus on legal issues avoid legal jargon and are easy to read. There is extensive coverage of financing and structuring issues which, combined with the legal context, contributes to making this a truly ‘practical handbook’ for the renewables industry.

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First published in Cleantech Infocus: 2010 - Equity Deals of the Year, January 2011. Copyright Cleantech Investor Ltd

Renewable energy generators were successful at raising funding in emerging markets during 2010. China saw IPOs on the Hong Kong Stock Exchange by China Datang Corp. Renewable Power Co. (the country’s second largest wind power producer) and China Suntien Green Energy Corporation (which focuses on northern China and develops wind and natural gas generation). India’s Caparo Energy listed on the London Stock Exchange’s AIM market, while India’s Orient Green Power Co. saw its shares list in Mumbai.

In Sao Paulo, Renova Energia, which generates energy from wind and mini hydro, also raised funding. Meanwhile, Europe saw a high profile deal with the listing of Enel Green Energy in Italy.

However, a number of planned renewable energy IPOs were cancelled or postponed during the year due to the difficult market conditions. The US saw the shelving of the planned IPO of First Wind Holdings of Boston. In Europe, Renovalia Energy of Spain, which operates solar and wind power plants, postponed its planned IPO. And even China wasn’t immune from the difficult environment. Huaneng Renewables, a unit of China Huaneng Group Corp., was forced to scrap its planned IPO on the Hong Kong stock exchange.