The following is an excerpt from the September edition of PVNews:
The March issue of PVNews featured downstream acquisitions across the vertical solar value chain. Between February 2010 and January 2011, five project development companies were purchased by larger, upstream players (LDK-Solar Power Inc, First Solar-NextLight, Sharp-Recurrent Energy, OCI-Cornerstone, and Enfinity’s-ClearPeak, which is the only exception to this as Enfinity is a developer). Just recently MEMC/SunEdison, which boasts an impressive pipeline and installation record itself, scooped up both Axio Power and Fotowatio Renewable Venture’s U.S.-based subsidiary.
Since 2006, well over $2 billion has been spent acquiring developers and/or their pipelines, but has it been worth it? With the $2 billion in developer and pipeline acquisitions also comes over 1.5GW of contracted and 4GW of pre-contract projects in the U.S. Relative to the size of the US commercial and utility markets in 2010 (619MWdc), these are massive figures. Though the domestic solar market has grown rapidly in the past few years and is expected to do so through 2015, do these companies anticipate even bigger growth or is this a case of just keeping up with the Joneses?
Comparing all of the acquisitions detailed in the table below, it is clear that multiple strategies have been employed by acquirers. Early movers, such as First Solar (OptiSolar) and SunPower (Powerlight), have seen the acquisitions they made back in 2006 start to come to fruition, with large projects connected in the last year. Both of these firms bought developers with late-stage pipelines, and these qualifications are represented in the high purchase prices. First Solar has continued this approach through to the present with the recent purchase of NextLight Renewable Power; MEMC and Sharp pursued a similar strategy with their acquisitions of SunEdison and Recurrent Energy, respectively...
To continue reading about U.S. developer acquisitions subscribe today to PVNews. To download the complete July 2011 edition of PVNews, which includes the ranking of top-10 developers in U.S. utility-scale PV, please click here.
Now in its 30th year of publication, PVNews continues its tradition as the solar industry's premier periodical. Focusing exclusively on the global PV industry and drawing on the expertise of the GTM Research solar analyst team, at only $395/year, PVNews is undoubtedly the industry's best value for in-depth market research. This renowned newsletter includes the following key components in each issue:
- A hand-picked news digest from the solar and related industries, following key developments that are shaping the future of PV
- Market research data, insights, and analysis, drawn from the GTM Research annual solar research program
- Exclusive market trackers: Monthly North American and European Feed-in Tariffs, Monthly U.S. Utility Pipeline, Annual Cell and Module Capacity and Production, Module Supply Agreements, and Monthly Large-Scale Project Announcements
- Market commentary from analysts and industry leaders
Subscribers around the world agree that PVNews is unquestionably the best value in market monitoring, and essential reading for decision-makers in the ever-evolving global renewable energy market. Subscribe today at http://www.greentechmedia.com/research/report/pv-news.
Tags: acquisition, acquisitions, acquisitions., developer, developers, market research, pv news, pvnews, solar projects, utility scale power plants, utility scale solar, utility scale solar parks, utility scale solar power