G T I R E INVESTMENT 2011 - FS UNEP Centre | Frankfurt ...fs-unep-centre.org/sites/default/files/media/unepglobal...U NITED N ATIONS E NVIRONMENT P ROGRAMME GLOBAL TRENDS IN RENEWABLE

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GLOBAL TRENDS IN RENEWABLE

ENERGY INVESTMENT 2011

Analysis of Trends and Issues in the Financing of Renewable Energy

2 Global Trends in Renewable Energy Investment, 2011

Global new investment in renewable energy2004 - 2010 ($bn)

Source: Bloomberg New Energy FinanceNote: SDC = small distributed capacity. New investment volume adjusts for re-invested equity. Total values include estimates for undisclosed deals.

75% 57% 43% 23% 0.4% 32%

33

57

90

129

159 160

211

2004 2005 2006 2007 2008 2009 2010

Financial new investment SDC, corp RD&D, gov R&D

Growth:

Global Trendsin Renewable EnergyInvestment 2011


Global transactions in renewable energy, 2010 ($bn)

Source: Bloomberg New Energy Finance; UNEP

Note: SDC = small distributed capacity. Total values include estimates for undisclosed deals. * data based on estimates from various industry sources.

+2 +3 +5 +3

+15 29 -6

+128

+60 211

+58 268

VC CorpRD&D

Totalinvestment

SDC*Assetfinance

GovR&D

Publicmarkets

new equity

M&A/B-O etc.

Total transactions

Re-invested

Totalcompany

investment

PE

Technology development

Equipment manufacturing/scale-up

Projects

Asset and company mergers, acquisitions, ref inancing, buy-outs etc.



Financial new investment in renewable energy:developed v developing countries, 2004-2010 ($bn)


Note: New investment volume adjusts for re-invested equity. Total values include estimates for undisclosed deals.

15

31

55

80 82

67 70

412

21

32

5155

72

2004 2005 2006 2007 2008 2009 2010

Developed Developing



Financial new investment and SDC in renewable energy by technology, 2010, and growth on 2009 ($bn)


Note: New investment volume adjusts for re-invested equity. Total values include estimates for undisclosed deals.

0.1

2

3

6

11

86

95

-44%

44%

-22%

-20%

-5%

52%

30%

Marine

Geothermal

Small hydro

Biofuels

Biomass & w-t-e

Solar

Wind

Growth:

*Small Distributed Capacity



VC/PE new investment in renewable energy by technology, 2010 ($bn)


Note: VC/PE new investment excludes PE buy-outs. Total values include estimates for undisclosed deals.

Solar2.2

Wind1.5

Biofuels0.7

Small hydro0.5

Biomass & w-t-e0.4

Geothermal0.1

Marine0.1



Public markets new investment in renewable energy by technology, 2010 ($bn)


Wind8.2Solar

5.3

Biofuels0.8

Small hydro0.5

Biomass & w-t-e0.4 Geothermal, 0.1

Marine, 0.01



Asset finance of new-build renewable energy assets by technology, 2010 ($bn)


Note: Total values include estimates for undisclosed deals.

Wind89.7

Solar18.9

Biomass & w-t-e10.2

Biofuels, 4.7

Small hydro2.3 Geothermal, 2.0

Marine, 0.04



Global financial new investment in renewable energy quarterly trend, Q1 2004-Q1 2011 ($bn)


Note: New investment volume adjusts for re-invested equity. Total values include estimates for undisclosed deals

54 5 6

910 9

14 13

1917

27

21 22

28

41

27

3835

33

19

35 34 34 32 3135

44

31

Q1 04

Q2 04

Q3 04

Q4 04

Q1 05

Q2 05

Q3 05

Q4 05

Q1 06

Q2 06

Q3 06

Q4 06

Q1 07

Q2 07

Q3 07

Q4 07

Q1 08

Q2 08

Q3 08

Q4 08

Q1 09

Q2 09

Q3 09

Q4 09

Q1 10

Q2 10

Q3 10

Q4 10

Q1 11

4Q running average



Financial new investment in renewable energy by region, 2004-2010 ($bn)


Note: New investment volume adjusts for re-invested equity. Total values include estimates for undisclosed deals. This comparison does not include small-scale projects.



Renewable power generation and capacity as a proportion of global power, 2004-2010 (%)

Source: Bloomberg New Energy Finance, EIA, IEA,

Note: Renewable power excludes large hydro. Renewable capacity figures based on Bloomberg New Energy Finance global totals.

10.2%

14.8% 13.4%

16.2%

25.9%

34.1% 34.2%

3.5%

7.9%

17.3%

29.4% 29.9%

4.3% 4.6% 5.0% 5.4%6.1%

7.1%8.1%

3.5% 3.6% 3.8% 4.0%4.7%

5.4%

0%

5%

10%

15%

20%

25%

30%

35%

2004 2005 2006 2007 2008 2009 2010

Renewable power capacity change as a % of global power capacity change (net)

Renewable power generation change as a % of global power generation change (net)

Renewable power as a % of global power capacity

Renewable power as a % of global power generation



VC/PE new investment in renewable energy by stage, 2004 – 2010 ($bn)


Note: Buy-outs are not included as new investment. Total values include estimates for undisclosed deals.

90% 217% 16% 88% -51% 19%

0.71.4

4.35.0

9.5

4.65.5

2004 2005 2006 2007 2008 2009 2010

PE expansion capital

VC late stage

VC early stage

Growth:



Public market new investment in renewable energy by stage, 2004-2010 ($bn)


0.4

4.0

11.0

22.0

12.8 12.5

15.4

2004 2005 2006 2007 2008 2009 2010

OTC

Convertible & Other

Secondary & PIPE

IPO



Asset financing new investment in renewable energy by region, 2004-2010 ($bn)



18

37

62

90

115107

128

2004 2005 2006 2007 2008 2009 2010

Middle East & Africa

South America

North America

Asia & Oceania

Europe



Asset financing new investment in renewable energy by sector, 2004-2010 ($bn)



18

37

62

90

115107

128

2004 2005 2006 2007 2008 2009 2010

Marine

Geothermal

Small hydro

Biomass & w-t-e

Biofuels

Solar

Wind



Small distributed capacity investment,2004 – 2010 ($bn)

Source: Bloomberg New Energy Finance,various industry sources

Note: Represents investments in solar PV projects with capacities below 1MW.

9 11 913

21

31

60

24% -11% 40% 60% 48.1% 91%

2004 2005 2006 2007 2008 2009 2010

Growth:



Acquisition transactions in renewable energy by type,2010 ($bn)

Source: Bloomberg New Energy FinanceNote: Total values include estimates for undisclosed deals.

9

26

35

5765 66

58

2004 2005 2006 2007 2008 2009 2010

PE buy-outs

Public market investor exits

Corporate M&A

Asset acquisitions & refinancing


[email protected]

For more information, contact:

Frankfurt School – the UNEPCollaborating Centre for Climate &Sustainable Energy FinanceFrankfurt School of Finance & ManagementSonnemannstrasse 9-1 160314 Frankfurt/ MainGermanyTel: +49 69 154008-0E-mail: [email protected]/energy/financewww.fs-unep-centre.org

Bloomberg New Energy FinanceBloomberg LPCity Gate House39-45 Finsbury SquareLondon EC2A 1PQemail: [email protected]

Frankfurt SchoolUNEP Collaborating Centrefor Climate & Sustainable Energy Finance

Documents

G T I R E INVESTMENT 2011 - FS UNEP Centre | Frankfurt ...fs-unep-centre.org/sites/default/files/media/unepglobal...U NITED N ATIONS E NVIRONMENT P ROGRAMME GLOBAL TRENDS IN RENEWABLE