european energy investment trends
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Michael Liebreich, Chief Executive Officer and Founder - New Energy Finance - United KingdomTRANSCRIPT
European Energy Investment TrendsTBLI Paris
9 November 2006
Michael Liebreich
© New Energy Finance, 2006
© New Energy Finance, 2006© New Energy Finance, 2006
Global Investment in Clean Energy 2005: $48.9bnGlobal Investment in Clean Energy 2005: $48.9bn
Figures marked * are based on New Energy Finance Desktop databases; all other figures are industry estimates based on various sources. Source: New Energy Finance
$2.1bn*
VC/PE Public markets
Corporate RD&D
Gov’t R&D
Technology & Equipment
$4.9bn*
$7.0bn
$6.0bn $20.0bn
Total investment
Small-scale projects
Asset finance
$21.9bn*
$7.0bn $48.9bn
Totaldeals
$66.2bn
M&A/ MBO
$17.3bn*
$7.2bn of Private Equity
Investment
© New Energy Finance, 2006© New Energy Finance, 2006
$63.3bn
$48.9bn
$30.1bn
2004 2005 2006
Global Investment in Clean Energy, 2004 - 2006Global Investment in Clean Energy, 2004 - 2006
62% Growth
30% Growth
2006 annualised estimate based on Jan to Sept Source: New Energy Finance
© New Energy Finance, 2006© New Energy Finance, 2006
Estimated Global VC/PE Investment 2001 - 2006Estimated Global VC/PE Investment 2001 - 2006
Includes all VC & PE investments. Number of deals in brackets. 2006 is annualised value Source: New Energy Finance
$762m (50)$1071m (72) $1,146m (121)
$2,779m (189)
$7,183m (264)
$8,800m (298)
2001 2002 2003 2004 2005 2006
Venture Capital PE for companies PIPE s PE for projects
158% Growth
© New Energy Finance, 2006© New Energy Finance, 2006
Global VC/PE Investment by GeographyQ3 2005 – Q2 2006Global VC/PE Investment by GeographyQ3 2005 – Q2 2006
$18m (3/3)
$31m (3/3)
$48m (5/5)
$55m (5/7)
$66m (5/8)
$94m (14/17)
$118m (3/4)
$158m (27/30)
$1522m (83/105)
Scandinavia
Israel
Asia
Other Europe
Germany
Canada
Australia
United Kingdom
United States
Region No. ofdeals
No. discl’d
Total$m
% Avg.$m
AMER 122 97 1,628 77% 16.8
EMEA 51 43 328 15% 7.6
ASOC 9 8 166 8% 20.8
TOTAL 182 148 2,122 100% 14.3
Number of deals in brackets; Disclosed deals only; Excludes PE for Projects
© New Energy Finance, 2006© New Energy Finance, 2006
Investment in European Venture-Backed Companies by Sector 2000 – 2006 (EUR m & % growth)Investment in European Venture-Backed Companies by Sector 2000 – 2006 (EUR m & % growth)
€0m
€2,000m
€4,000m
€6,000m
€8,000m
€10,000m
€12,000m
€14,000m
€16,000m
2000 2001 2002 2003 2004 2005 2006
-100%
-50%
0%
50%
100%
150%
200%Information Technology (EUR m)
Products & Services (EUR m)
Healthcare (EUR m)
Clean Energy (EUR m)
Information Technology (%growth)Products & Services (% growth)
Healthcare (% growth)
Clean Energy (% growth)
Excludes Buy-Outs. 2006 is annualised value. Products & Services include consumer business products & services, and retail Source: Dow Jones VentureOne and Ernst & Young; NEF
© New Energy Finance, 2006© New Energy Finance, 2006
Global Clean Energy Funds Under Management by Geography and Fund Type at August 2006Global Clean Energy Funds Under Management by Geography and Fund Type at August 2006
$6,668m(44/9)
$6,520m(33/16)
$792m(7/4)
AMER
EMEA
ASOC
Unquoted Quoted
$14bn Under Management in
113 Clean Energy Funds
Number of Unquoted/Quoted Funds in brackets Source: New Energy Finance
© New Energy Finance, 2006© New Energy Finance, 2006
Global Clean Energy Funds Under Managementby Geography & Fund Focus at August 2006Global Clean Energy Funds Under Managementby Geography & Fund Focus at August 2006
$6,668m(17/23/13)
$6,520m(13/24/12)
$792m(4/6/1)
AMER
EMEA
ASOC
Cleantech / Envirotech Clean Energy Sector Specific
$10bn (71%) in Clean Energy & Sector Specific
Funds
Number of Clean Tech/Clean Energy/Sector Specific Funds in brackets Source: New Energy Finance
© New Energy Finance, 2006© New Energy Finance, 2006
Selected VC/PE Investor Exit Transactions 2005 - 2006Selected VC/PE Investor Exit Transactions 2005 - 2006
Organisation (Country)
Sector Type Date VC/PE Backer Investment ($m)
Valuation ($m)
REC Group (Norway)
Solar IPO (Oslo)
09/05/06 Goldman Sachs, Good Energies , Mithril
44.2 7,674
Suzlon Energy (India)
Wind IPO (New Delhi)
19/10/05 Citigroup
21.3 3,3 32
Suntech (China)
Solar IPO (NYSE)
14/12/05 Goldman Sachs , Dragon Tech, Actis Capital, Prax Capital, Natexis PE
80.0 2,212
Q-Cells (Germany)
Solar IPO (Frankfurt)
21/09/05 DKB, Good Energies, Apax Partners 15.6 1,690
Hawkeye (US)
Biofuels PE Pre -IPO investment
11/05/06 Thomas H. Lee 363 1,000
ITM Power (UK)
Hydrogen Fuel Cells
Secondary 05/05/06 Fidelity Global Group 54.4 599
Hansen Transmissions (Belgium)
Wind M&A 17/03/06 Apax Partners, Alliance Capital Partners
157 565
Schmack Biogas (Germany)
Bi omass/ biogas
IPO (Frankfurt)
24/05/06 Sustainable Asset Management 1.5 197
Ceres (UK)
Fuel Cells IPO (AIM)
25/11/04 Carbon Trust Investments, Fleming Family & Partners, Imperial College, Nikko Principal Investments
9.2 125
CMR Fuel Cells Ltd (UK)
Fuel C ells IPO (AIM)
22/12/05 Conduit Ventures, Carbon Trust Investments
9.2 63.2
© New Energy Finance, 2006© New Energy Finance, 2006
Global Public Market IPO and Secondary Transactions 2001 - 2006Global Public Market IPO and Secondary Transactions 2001 - 2006
$7,015m (18/22/14)
$5,907m (35/36/23)
$664m (13/13/3)$326m (5/9/3)$235m (4/2/0)$326m (5/1/0)
2001 2002 2003 2004 2005 2006
IPO Secondary Convertible and other
Number of IPO/Secondary/Convertible and other deals in brackets. 2006 to end June Source: New Energy Finance
© New Energy Finance, 2006© New Energy Finance, 2006
Wilder Hill New Energy Finance Global Innovation Index (NEX), December 2002 to September 2006Wilder Hill New Energy Finance Global Innovation Index (NEX), December 2002 to September 2006
December 30 2002 = 100. Calculated to start of Sep 2006 Source: New Energy Finance, American Stock Exchange
75
125
175
225
275
325
Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06
AMEX Oil
NASDAQ
S&P 500
NEX
© New Energy Finance, 2006© New Energy Finance, 2006
Forecast global number of VC & PE investments 2006 - 2012Forecast global number of VC & PE investments 2006 - 2012
Estimated $100bn equity investment 2006 – 2012
Universe of 100+ European VC-backed clean energy companies
500 per year investments by 2012
0
100
200
300
400
500
600
2003 2006 2012
PE for projects
PIPEs
PE for buyouts
PE for expansion
VC
© New Energy Finance, 2006© New Energy Finance, 2006
Keeping the Finance Flowing – 10 ImperativesKeeping the Finance Flowing – 10 Imperatives
Address policy weaknesses in developed country laggards. Develop retail finance models for home and small business-scale clean energy projectsRoll out microfinance programmes for small-scale projects in the developing world.Accelerate the incubation of new technologies.Improve the macroeconomic environment for early stage technology companies.Develop mechanisms to support pilot projects which require debt but still have technology risk.Break the offshore wind funding bottleneck.Ensure the developing world has access to the most energy-efficient generation and industrial technologies.Introduce “industrial strength” mechanisms to finance large projects in the developing world.Ensure the survival and extension of carbon trading.
© New Energy Finance, 2006© New Energy Finance, 2006
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© New Energy Finance, 2006© New Energy Finance, 2006
New Energy Finance’s Clinton Global Initiative CommitmentNew Energy Finance’s Clinton Global Initiative Commitment
New Energy Finance has committed to provide information, research and networking services at no cost to ten leading incubators of clean energy technology in the developing worldCandidate incubators must have the following characteristics:– Have access to the best technology being developed in the local region– Have a track record developing clean energy technologies and
businesses– Have a core staff already dedicated to incubation of technology– They can be public or private
Early contact has been initiated with universities in China, Brazil and South AfricaWe welcome applications to join the programme
© New Energy Finance, 2006© New Energy Finance, 2006
Thanks!Thanks!
Michael LiebreichCEO & Founder
New Energy Finance
71 Gloucester PlaceLondon W1U 8JWTel: +44 20 7727 [email protected]