Record $53.5bn passes hands in renewable sector deals

A record $53.5billion (£34bn) passed hands in the global renewable energy sector in 2011, suggests new figures released today. The value of deals rose 40% in value worldwide, while in […]

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By Vicky Ellis

A record $53.5billion (£34bn) passed hands in the global renewable energy sector in 2011, suggests new figures released today.

The value of deals rose 40% in value worldwide, while in the UK deal values more than doubled to $3.2bn (£2bn), according to auditing firm PricewaterhouseCoopers’ annual review of the sector.

The findings suggest the European market was the biggest hunting ground for deals, despite serious financial uncertainty in the Eurozone.

Ronan O’Regan, director of PwC renewables and cleantech told ELN: “One of the big issues has been the impact of the European sovereign debt crisis on transaction activity. That’s playing out in two ways.

“One, it’s had uncertainty around the availability of credit. The other side is that there’s a much increased focus, not just in the UK but across Europe, on the issue of affordability of energy.”

This has been seen particularly in Britain’s and other European governments’ attempts to cap the solar Feed-in Tariff, he suggested. Despite this, 2011 was the first time solar eclipsed wind in trades, according to the PwC report.

Looking to 2012, although Eurozone fears still lurk, bigger renewable deals shouldn’t be affected unnecessarily by market uncertainty, added Paul Nillesen, partner at PwC renewables.

He said:”Staying out of the markets in the hope things will improve cannot be assumed to be the right strategy. The potential for further destabilisation domestically, or at an inter-governmental level cannot be ruled out, but if a deal is highly strategic, and mission critical, then parties will still feel it is worth doing on the right terms.”