Key survey findings include:
- Globally, a total of 446 renewable energy M&A deals completed in 2010, an increase of over 70 percent on the 260 deals closed in 2009.
- A record 141 renewable M&A deals totalling US$11.2bn were announced in Q1 2011, more than double the average quarterly value of US$5.5bn in 2010, over an average of 96 announced deals.
- Government incentives remain as important as ever to the sector, particularly in Western Europe.
- 78% of respondents expected the global renewable energy market to be driven by new investors from China, while 59% expected new acquirers from North America to develop the market.
- A heavy bias towards local investment was revealed, with more than double the number of Asian respondents intending to invest in China and India than those intending to invest in European countries.
- Over 70% of North American, Asian and European respondents predict increased competition for acquisition targets.
Robert Van Genderen, Director, Corporate Finance, KPMG in Russia and CIS, commented: “As it relates to Russian oil and gas companies, in a country with one of the largest hydrocarbon reserves, renewable would seem to be a subject of little interest. However, renewable energy is a competitive product to hydrocarbons, the push for alternative energy sources is growing, environmental concerns over hydrocarbon usage are rising, and at some point Russian companies will possibly seek to hedge themselves by developing a portfolio of renewable energy assets alongside their hydrocarbon base”.
Full-text PDF version of the study “Green Power 2011: The KPMG renewable energy M&A report” can be downloaded here.