 |  | | Spain, Portugal wind companies snapped up by buyers from Germany to China Wind assets were in high demand last week, as companies looked to buy into markets outside their traditional domain. The largest acquisition saw First State Wind Energy Investments purchase the wind-power assets of Enel Green Power in a EUR 900m ($1bn) transaction. The unit, Finerge Gestao de Projectos Energeticos, has 126MW of installed capacity in Portugal and a minority stake in an additional 292MW, and will be transferred to London-based First State within the transaction terms. Just a few days later, Nordex acquired the wind power business of Spain-based Acciona for EUR 785m ($880m) in cash and stock, allowing the Hamburg-based wind turbine maker to bolster its presence in the Americas and emerging markets. Acciona will become the largest shareholder of Nordex as a result of the deal, receiving 16.1m new shares priced at 26 euros each – bringing its stake to just shy of 30% in the German company, in addition to a cash payment of EUR 366.4m. Acciona Windpower owns three production plants in the US, Brazil and Spain, and has another under construction in India, and has supplied its turbines to more than 100 wind farms in 18 countries. The shares of Nordex rose 8% following news of the deal, while Acciona shares gained 10%. Elsewhere on the Iberian peninsula, Portuguese wind-farm developer Iberwind Group was bought by a joint venture controlled by Hong Kong billionaire Li Ka-Shing in a deal worth as much as EUR 288m. Li's Power Assets Holdings and his Cheung Kong Infrastructure Holdings each own half of the venture, and will pay equally a maximum commitment of EUR 144m.The purchase of Iberwind, which produces about 684MW of power from 31 wind farms in Portugal, enables the 18th wealthiest man in the world to expand his renewable-energy platform into new territory. In other wind-related news, renewables-operator Capital Stage bought a 7.5MW wind-power unit in southeast Germany for EUR 18m, sold by Unlimited Energy of Berlin and GP Joule, while Gamesa Tecnologica, Spain's biggest turbine-maker, won 72.5MW worth of orders in Turkey, Cyprus and Kuwait. In the UK, onshore wind is now considered to be the least-cost option for new power generation, valued at $85/MWh in comparison to $91/MWh for coal, according to the EMEA Levelised Cost of Electricity Outlook for H2 2015, published by Bloomberg New Energy Finance. "This is primarily due to an increase in our carbon cost expectations following EU ETS market reform and passage of the Market Stability Reserve," the note says. Wind energy in EMEA as a whole remains at $91/MWh for onshore and $179/MWh for offshore – taking into account the higher capital expenditures and O&M costs of installing turbines out at sea. A host of climate pledges were committed last week to the UN to meet the October 1 deadline in preparation for COP21. India said it would reduce its emissions intensity by 33% to 35% below 2005 levels by 2030, and also set a goal to power 40% of its installed electric capacity from clean energy sources by the same date. The world's third-biggest polluter declined to declare a peak emissions year, stating that economic growth must be paramount in the country's move to clean up its operations. Some $2.5 trillion will be needed by 2030 to transition India's economy away from fossil fuels said Prime Minister Narendra Modi. German Chancellor Angela Merkel has pledged more than EUR 1bn in India solar power projects, to help Asia's third-largest economy towards this goal. Chile too submitted a pledge to source 70% of its electricity consumption from renewables by 2050, up from 9.7% today, while the Philippines pledged to reduce its carbon emissions by 70% by 2030. "The stand-out submission is Brazil," says Road to Paris COP21, a BNEF analyst reaction. "The Brazilian target is an unconditional reduction in emissions by 37% below 2005 levels by 2030. Action to slow deforestation is key to Brazil climate policy, but the government will also target 45% renewables in the energy mix by 2030." In other news, Tesla Motor unveiled its second all-electric vehicle to come to the market, as the company founder Elon Musk handed over six Model X SUVs to owners in California. The vehicle is projected to have a range of 250 miles (402 km) per charge and a top speed of 155 miles per hour. Meanwhile, Honda announced that it will introduce a fuel-cell vehicle with a longer driving range than Toyota's Mirai at the Tokyo Motor show at the end of this month. Additional range of more than eight miles can be unlocked from a 24KWh-battery powered electric vehicle by improving the efficiency of power electronics and reducing energy losses from vehicle movement and braking, estimates Bloomberg New Energy Finance in the research note Beyond the battery: improving efficiency in EVs. Improving vehicle efficiency is central in automakers' quest to release "a new generation of affordable-long-range electric cars in US markets in 2017" the note says. | |  | | Low corporate bond yields drive investors to finance renewable energy |  | | | Institutional investors commited over $3bn to European renewable power projects in H1 2015, increasingly through quoted project funds and direct investments. However, demand for investable projects outstrips supply, which drives up asset prices and reduces equity rates of return. | |  | | Climate Apathy Creates Investment Opportunity: Impax The average investor has been "pretty uninterested" in the lead up to global climate change talks at the end of the year, creating an opportunity for Impax Asset Management, says its founder and chief executive. Ian Simm said Impax has been analysing the likely outcomes of this year's UN negotiations in Paris and the impact it may have on its target markets. The group, which currently has GBP 2.9bn ($4.4 bn) of assets under management, invests in "sustainable" companies. Among its top 10 holdings are LKQ, which provides recycled and remanufactured mechanical parts, and Donaldson Company, a maker of pollution control technology. "I think a positive outcome in Paris will send a strong signal to companies and investors that the direction of travel is set in favor of improved energy efficiency and reduction of greenhouse gases, which means long-term commitments to major capital expenditure projects will be more likely," Simm said in an interview. Many of the world's largest countries have already announced new commitments to limit greenhouse gas emissions as part of a deal they aim to seal at the UN meeting in Paris this December. The last push for a global deal was in 2009 at the Copehagen climate talks, which ended without legally binding targets. "I think the average investor is currently pretty uninterested in what's going on, partly because Copenhagen was not a success and partly because they haven't joined the dots between an agreement and what it would mean for their investment portfolios, which is an opportunity for us," Simm said. Ian Simm, chief executive of Impax Asset Management, spoke at his London office with Bloomberg Brief Editor Siobhan Wagner about the UN climate change talks at the end of the year and the unexpected impact it may have for some investors' portfolios. Q: Who are your clients? What are their objectives? A: Our clients are pension funds, insurance companies, and sovereign wealth funds as well as wholesalers and wealth managers who distribute our products to the retail market. We invest for the longer term in well-governed companies in rapidly expanding and inefficiently priced markets. We believe that portfolios of companies providing cleaner, more efficient products and services across the alternative energy, energy efficiency, water, waste, food and agriculture sectors offer investors strong long-term, risk-adjusted returns. Q: How is your investment strategy different from others? A: I think there are several things that make us stand out. Number one is our depth of understanding of the dynamics of resource efficiency and environmental markets. This has been built up over many years (Impax was formed in 1998). Many of our fund managers started their careers as scientists or engineers so a deep understanding of the technologies is a given. This insight allows us to gauge how businesses are likely to perform in the future. For example, in the past we've avoided first-generation biofuels. We've also timed our entry into the solar sector pretty carefully and we avoided stocks like Hanergy completely because we always believed that its business model and governance were flawed. Secondly, we have a detailed understanding of global environmental policy and regulation. These markets are not subsidy driven, but they are shaped by public policy. Impax has regulatory specialists in the US and Europe and we also analyse the regulatory regimes in Asia and in particular China. We have been analysing the likely outcomes of the global climate negotiations in Paris and the subsequent impacts across our target markets... This is an excerpt from the Clean Energy & Carbon Brief published weekly. To subscribe to the Clean Energy & Carbon Brief, click here. | |  | | | | | | BNEF services | Contact BNEF | Unsubscribe Copyright © 2007-2015 Bloomberg Finance L.P. All rights reserved. This email has been sent to you by Bloomberg New Energy Finance, a division of Bloomberg Finance L.P. Please feel free to forward it to colleagues interested in renewable energy and energy technologies, provided it is complete and identifies Bloomberg New Energy Finance as the source. Bloomberg New Energy Finance does not purchase data from or to third parties. If you have received this from a colleague and would like to receive your own personal copy each week, please contact sales.bnef@bloomberg.net Please send any queries/comments to the Week in Review editor, and make sure you send us your own financial transactions in renewable energy and energy technology sector: editor.bnef@bloomberg.net.
This service is derived from selected public sources. Bloomberg Finance L.P. and its affiliates, in providing the service, believe that the information it uses comes from reliable sources, but do not guarantee the accuracy or completeness of this information, which is subject to change without notice, and nothing in this document shall be construed as such a guarantee. The statements in this service reflect the current judgment of the authors of the relevant articles or features, and do not necessarily reflect the opinion of Bloomberg Finance L.P., Bloomberg L.P. or any of their affiliates ("Bloomberg"). Bloomberg disclaims any liability arising from use of this document and/or its contents, and this service. Nothing herein shall constitute or be construed as an offering of financial instruments or as investment advice or recommendations by Bloomberg of an investment or other strategy (e.g., whether or not to "buy", "sell", or "hold" an investment). The information contained herein should not be considered as information sufficient upon which to base an investment decision. BLOOMBERG, BLOOMBERG PROFESSIONAL, BLOOMBERG MARKETS, BLOOMBERG NEWS, BLOOMBERG ANYWHERE, BLOOMBERG TRADEBOOK, BLOOMBERG BONDTRADER, BLOOMBERG TELEVISION, BLOOMBERG RADIO, BLOOMBERG PRESS, BLOOMBERG.COM, BLOOMBERG NEW ENERGY FINANCE and NEW ENERGY FINANCE are trademarks and service marks of Bloomberg Finance L.P. or its subsidiaries.
The data contained within this document, its contents and/or this service do not express an opinion on the future or projected value of any financial instrument and are not research recommendations (i.e., recommendations as to whether or not to "buy", "sell", "hold", or to enter or not to enter into any other transaction involving any specific interest) or a recommendation as to an investment or other strategy. No aspect of this service is based on the consideration of a customer's individual circumstances. You should determine on your own whether you agree with the content of this document and any other data provided through this service. Employees involved in this service may hold positions in the companies covered by this service. | | |
No comments:
Post a Comment