Deals for “new generation” renewable technologies – wind, solar, biomass – are today said to be entering the big time, driving the market to new record highs.
Business adviser PwC has published its annual global analysis of merger and acquisition transactions in the renewable sector.
It reveals deal values in the area rose 40% year on year to a record level of £34billion in 2011.
Solar, wind and energy efficiency deals overtook hydro power as the driver for big-deal values for the first time.
One in every three deals last year was solar, and overall deal value for the sector was up 56% to £10billion.
PwC said a reappraisal of the role of nuclear in many countries’ national energy strategies after the Fukushima emergency in Japan had provided an extra impulse for renewable generation in certain markets.
Richard Spilsbury, partner and energy specialist at PwC in Aberdeen, said: “Deal-making activity continues to mature in the renewable and clean energy sector – both direct investments and in the supporting service sector – and as a result we are seeing evidence of more deal-making activity both globally and in the UK.
“As we reported in our Northern Lights paper a few months ago, research has already shown that Scotland has sufficient renewable energy resources to provide 75% of the UK’s electricity needs, while estimates suggest it could also provide 25% of Europe’s onshore wind resource, 10% of wave resource as well as significant potential for tidal stream and offshore wind capacity.
“There is no reason why Aberdeen couldn’t be the hub for this sector and help drive the UK’s future dealmaking activity – after all it has the industry, the natural resources, the technologies and transferable skills.
“Scotland is certainly proving to be a keen ambassador for renewable sector and energy efficiency, both in terms of Scottish Government policy and ongoing lobbying to bring the Green Investment Bank to Edinburgh, and the benefits are trickling through.
“The announcement last week of the approval of the £7billion of investment by SSE and Scottish Power, to upgrade its network infrastructure to support the burgeoning offshore wind market, is further evidence of the confidence in the sector.”
