GROWING SMART GRID BUY-IN

Smart Grid VC, M&A Activity Reach Highest Levels Ever In 2010
20 January 2011 (Renew Grid)

"Smart grid venture-capital (VC) funding and mergers and acquisitions (M&A) activity reached new heights in 2010, according [to Smart Grid Investment and M&A 2010] released by Mercom Capital Group LLC.

"VC funding in the smart grid sector was at its highest, with $769 million in 51 deals, representing an 88% increase over 2009. Top smart grid VC transactions included the $165 million raise by Landis+Gyr, the $106 million raise by Trilliant and the $52 million raise by OpenPeak. M&A activity was also robust for the smart grid sector, with 40 transactions, including the acquisition of Ventyx by ABB for $1 billion."

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[Raj Prabhu, managing partner, Mercom Capital Group:] "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…Eighty-seven different investors participated in VC rounds in 2010.”

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"The solar and wind sectors also saw VC and M&A growth in 2010. Activity increased in large-scale solar project funding, debt and other funding types, pointing to an ease in the availability of credit after a challenging 2009. Solar M&A transactions in 2010 totaled $2 billion in 44 deals.

"The wind sector saw a 40% 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 constituting the bulk of it."