The world’s largest professional services firm PricewaterhouseCoopers (PwC) has released a report that credits strategic mergers and acquisitions (M&A) for giving the renewable energy market momentum.
The first edition of an annual review by the company, Renewables Deals, detailed the order in which individual renewable sectors had a higher rate of M&As. Wind led the way, with solar overtaking hydro as the second largest renewable energy deal category – accounting for 20% of total renewable energy deals. Solar deals quadrupled in number and more than quadrupled in total value in 2008.
As the credit crisis continues to hinder world economies, M&A transactions are increasing for the renewable energy sector. The report stated that 25% of deals in the power sector are for renewable assets or technology. In addition, renewable energy accounts for one-tenth of M&A value in the wider power sector.
In 2007 and 2008, 441 renewable energy deals were announced with a reported value of $70.3 billion. However, while deals increased throughout North America, Asia, and Europe, countries in Africa,