Enerdatics’ Post

🌟 Deal under Spotlight: Enbridge's offshore wind acquisition in Germany from CPPIB at a record-high metric of $4.24mn/MW 💼 Enbridge has invested $663.5mn for a 24.5% stake in the 522 MW Hohe See and 118 MW Albatros offshore wind farms in Germany from the Canadian pension fund CPPIB. This acquisition was agreed at a record-high deal metric of $4.24mn/MWh - representing one of the highest valuations for operational offshore wind assets in the country since 2020. The strategy? Betting big on assets with guaranteed earnings for an extended duration, at attractive FiT contract prices awarded under the EEG act. 📊 Enerdatics breaks down the trend: With over 9 years of guaranteed revenue at $185/MWh, these projects are attracting elite investors, commanding top-tier valuations. 🔮 The forecast - a continued rally for assets with ample remaining contractual life under the FiT period, such as Deutsche Bucht and Kaskasi, is expected in the near future. Meanwhile, assets nearing the end of their FiT period are catching the eye of prudent investors like Greencoat, who are seizing the opportunity to invest in a contracted asset at a relatively lower valuation. 💡 The takeaway? In the high-stakes game of offshore wind investments, the duration of the FiT contract isn't just a detail—it is a crucial factor that decides the asset valuation. #Enbridge #RenewableEnergy #OffshoreWind #CleanTech #GreenEconomy #InvestmentTrends #EnergyTransition #WindPower #AssetValuation #FiT #Renewables #WindFarms #EnergyMarket #InfrastructureInvestment #GreenFinance

Enbridge's groundbreaking $663.5mn investment in German wind farms (640 MW) from CPPIB, with a record-high metric of $4.24mn/MW, analyzed by Enerdatics. Key insight: FiT contract duration shapes asset valuations and market dynamics. #RenewableEnergy #Investments #Enerdatics #offshore

Brookfield Asset Management is set to become the largest owner and operator of renewable energy in Australia with a massive $10 billion bid to acquire France’s Neoen. Neoen, known for its Victorian Big Battery near Geelong, has a robust project pipeline of nearly 10 gigawatts expected to come online over the next decade. This acquisition, backed by Neoen's board, highlights the growing demand for sustainable power solutions. Despite challenges in the renewable sector, Brookfield remains undeterred, viewing these as mere speed bumps in the 20-year megatrend towards low-cost clean energy. Recent successes, such as the deal to supply 10.5 gigawatts of renewables to Microsoft, showcase this unwavering commitment. Neoen CEO Xavier Barbaro expressed enthusiasm about partnering with Brookfield to propel Neoen’s growth further. With regulatory approvals pending, this acquisition marks a significant step forward in Brookfield's renewable energy strategy. Brookfield's acquisition of Neoen is a milestone for renewable energy in Australia and beyond. It demonstrates a robust commitment to sustainable development and positions Brookfield as a key player in the global shift towards cleaner, greener energy. #renewableenergy #sustainability #cleanenergy #brookfield #neoen #greenfuture #australia #evoegy

Huge story to start the week as private equity firm EQT Group confirms it has made a $1.5bn bid to buy Swedish renewables developer OX2. OX2 has emerged as an important developer in European renewables over the last five years, in sectors including onshore and offshore wind, so the interest from EQT comes as no surprise to us. EQT has made the offer through Otello BidCo AB, which is part of its EQT Infrastructure VI vehicle. The deal is strategically interesting as Otello said its backing would help OX2 to evolve into an independent power producer, rather than a developer. Otello's statement said: "To unlock OX2’s full potential, we believe it would benefit from a transition to a more long-term, sustainable business model and becoming an integrated renewables developer and asset owner." OX2's 45.6% majority owner Peas Industries has committed to accept the deal, and an OX2 independent bid committees has also recommended that shareholders should accept the offer. OX2's statement said the deal relies on enough shareholders accepting the proposal so that Otello BidCo owns more than 50% of all shares. Given that it only has to find an additional 4.4% on top of the Peas Industries stake, that shouldn't be an obstacle. It added that OX2 will likely remain listed on the Nasdaq Stockholm stock exchange if Otello BidCo doesn't obtain a 90% shareholding in OX2. Story here: https://lnkd.in/eg5DXprF #renewableenergy #onshorewind #offshorewind A Word About Wind Tamarindo

EnCap Investments Seals a Breezy Deal: Triple Oak Power Goes to ECP for Up to $750mn EnCap Energy Transition has successfully sold its 8 GW onshore wind platform, Triple Oak Power, to Energy Capital Partners (ECP). The deal is believed to generate sale proceeds between $500mn and $750mn, according to reports. 📈 ECP's Wind Power Play - ECP's acquisition of Triple Oak Power’s portfolio, primarily in western and Midwest markets, stands out in the current landscape, where high-quality wind development companies are scarce outside the ERCOT market in the US. 🌱 Three-Year Growth Story: EnCap's journey with Triple Oak began in Oct’20 through a majority equity investment, fuelling the latter’s strategy of focusing on bridging the gap from the early stage uncertainties in development to delivering shovel-ready, utility-scale wind facilities. 🔄 Continued Divestment Trend: This sale represents EnCap's third major renewable platform divestment, following the sale of Jupiter Power to BlackRock and a $1.6bn deal with ENGIE to sell Broad Reach Power. 📊 EnCap's Strategic Approach: EnCap continues to execute its strategy of developing high-potential platforms and divesting them for maximized returns. As Shawn Cumberland, its managing partner, stated, "We create companies that are capital hogs, and then somebody big has to buy them and keep it going. That's the next part of this evolution. #RenewableEnergy #EnergyInvestment #WindPower #SustainableDevelopment #StrategicInvestment #MergersAndAcquisitions #CleanEnergy #EnCap #EnergyTransition #BusinessStrategy #TripleOakPower

 $2bn sale of VSB Group: Partners Groups looks to tap Germany's rising renewables demand Partners Group is rumored to be in conversations with financial advisers in the last few weeks for the potential sale of their Germany-based utility-scale solar and wind platform VSB Group for ~$2bn, after ~4 years of holding. Robust portfolio: The company holds over 1.3 GW of operational assets, located across Germany, Italy, France, Spain, Poland, Romania, Greece, Finland, and Croatia. Strategic Shift: Initially, Partners Group planned to merge VSB with Spain's Exus, a renewables platform that they acquired for $1bn in Oct’23. However, this plan was later dropped, indicating a change in strategic direction. Booming Market: Germany's renewable energy sector has witnessed over $8bn in deals since 2023, with PE firms like Asterion, AIP Management, and Norges Bank carrying out $1bn+ transactions, primarily targeting onshore and offshore wind assets. Emerging Investment Opportunities: The rumour closely follows a recent announcement by Encavis, another German renewables firm, which has confirmed that they are in talks with KKR for a $2bn sale. #RenewableEnergy #GreenInvestment #PartnersGroup #VSBGroup #SustainableBusiness #EnergySector #MarketTrends #InvestmentOpportunities #CleanTech #SolarWindPower

Cap10 Partners LLP are delighted to announce that Cap10 portfolio company Sureserve Group has acquired Duality Group Limited, marking the company’s second major acquisition in less than a year, following its acquisition of Swale Heating Limited in November. The acquisition includes Duality’s subsidiaries Gas Call Services Ltd, WRB Gas (Contracts) Ltd, and Dyson Energy Services Limited, which focus on delivering renewable energy and heating solutions to the social housing sector and residential clients across Scotland and England and delivers on Sureserve’s mission to be the trusted partner of choice to social housing and within the public sector delivering essential and affordable heating, energy savings and compliance solutions. Fabrice Nottin, Founding Partner of Cap10 Partners LLP, said: “We are delighted to announce that Sureserve Group has completed the strategic acquisition of Duality Group Limited. We are investing heavily into growing Sureserve, and today’s announcement is a significant step to ensuring the company reaches its full potential.” Read the Press Release here: https://lnkd.in/dZ5TCTVS #Acquisition #Renewables #Heating #Growth #PrivateEquity #Cap10

Is it Easter yet? Most of us have only been back for three weeks after the Christmas break, but the pace of M&A activity has made us feel like months have passed. But what's driving renewables M&A activity in 2024? In our latest A Word About Wind analysis, Richard Heap looks at... - General Atlantic's acquisition of growth markets investor Actis - Commerzbank AG's deal for 74.9% of Aquila's asset management arm - Mitsubishi HC Capital becoming a 20% shareholder in European Energy - RWE's aborted acquisition of Ørsted in the second half of 2023 Click here: https://hubs.la/Q02hJgwr0

Europe M&A: PE Firms are Dominating Acquisitions of Renewables Developers, at Attractive EV/EBITDA Multiples 💡$1.5bn Acquisition: Private Equity (PE) investment powerhouse EQT Group acquired 100% of Sweden-based solar and wind developer OX2 for an enterprise value of $1.5bn, in a take-private deal. The purchase involves a 34 GW pipeline of early-stage and under-construction solar, onshore wind, offshore wind and battery projects across Sweden, Finland, Estonia, Lithuania, Poland, Romania, France, Spain, Italy, Greece, and Aland. 📈 19X EBITDA Multiple: The deal represented an EV/Last-Twelve-Months (LTM) EBITDA multiple of 19X, which is at the higher end of the valuation range observed for recent PE-led acquisitions in Europe. Enerdatics notes that the partnership between a PE firm and an established developer leads to an alliance that is well capitalized to progress a GW-scale pipeline, while simultaneously adopting a more integrated operating model with opportunities to tap additional income streams across the project development value chain 🔄 Emergence of Take-Private Deals: An Associate Director at Warburg Research recently commented: “As long as markets are concerned about possible short-term obstacles for renewables stocks, private equity investors will take the opportunity to take them private and maintain a buy-and-build strategy. The main difference should be the time perspective. Whilst markets tend to overvalue short-term triggers (i.e. 3-9 months), [private equity firms] usually have a longer time horizon and no mark-to-market valuation at any day a year. That somewhat fits the renewables industry, which is caught in very long investment/lifetime cycles due to its underlying assets." #energy #alternativeenergy #renewableenergy #energytransition #enerdatics For more updates, please follow us at Enerdatics. PS: The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.

Premier Miton Global Renewables Trust’s investment objectives are to achieve high income and realise long-term growth in the capital value of its portfolio. It seeks to achieve these by investing principally in the equity and equity-related securities of companies operating primarily in the #renewable #energy sectors and other #sustainable #infrastructure investments. Watch the equity proposition video to learn important elements of the firm's investment story. https://lnkd.in/g54fcDBG #PMGR #LSE Premier Miton Investors #trust