Green Power 2012: The KPMG Renewable Energy M&A Report 

KPMG has conducted this annual review since 2008 to provide insight into global mergers and acquisitions (M&A) activity within the renewable energy sector. Now in its 5th year, the findings are based on a survey of 500 senior executives in the renewable energy industry worldwide and reflect views from corporations, regulatory bodies, financial institutions, and others.  Interviews were conducted with eleven executives to supplement the survey results, which explore the changes and trends in the sector and provide insight on where the market is heading.

 

Key findings

 

  • Globally, a total of 591 renewable energy M&A deals valued at US$51.2bn were announced during 2011, a significant increase on the 431 deals announced in 2010.
  • In Q1 2012, 150 M&A transactions totaling US$9bn were announced in Q1 2012, a slight increase from the US$8.75bn value of 150 transactions in Q4 2011.
  • Asian companies announced 29 acquisitions totaling US$2.1bn of assets based outside Asia in 2011, over 50% more than the volume of activity in 2010. Survey respondents strongly believe that these transactions are an indication of likely levels of future deal activity from Asia. Over 40% believe that new investors and acquirers in renewable energy are most likely to come from China, while approximately a quarter believe that new players will emerge from Japan.
  • The USA continues to be the most attractive market for renewable energy M&A and investment, with over 46% of surveyed corporates and investors planning to target the country during the next 18 months.
  • In 4Q 2011 only US$33.4bn was allocated to renewable energy projects globally, 13% below the quarterly average during the last three years.
  • Renewable energy generation costs continued to fall significantly in 2011 to the extent that the industry is now talking about when, rather than if, grid parity will be reached.
  • 70% of survey respondents indicate that it is harder to secure debt financing to fund acquisitions of renewable energy projects and/or companies now compared to 12 months ago. However, a resounding 85% of respondents agree with the statement that "renewable energy dealflow will remain robust for the next five years."

 

 

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Green Power 2012: The KPMG Renewable Energy M&A Report  (PDF 3.4 MB)