Renewables Deals - 2009 Annual Review

 

Our 2009 review shows that although renewables deals form a significant part of overall power sector M&A activity, core (non-hydro) renewables deal activity has been very subdued. In part this reflects continued difficult conditions in credit markets. In addition, many key players have been focused on developing project portfolios that they have built up over a number of years. In this sense, investment is happening but not through M&A activity.

 

We look back, at 2008 and 2009, and ahead - through 2010 and beyond. The end of 2009 saw the difficulties in Copenhagen of achieving global agreement on a successor to the Kyoto Protocol. In general, we do not see this as a key factor affecting deal-making as companies will be much more focused on national and regional policy measures, such as in the EU and US, which have a more direct bearing on deals.

 

Looking ahead, however, we see the outlook for renewables deal-making remaining tough with the triggers for an upturn in M&A continuing to be uncertain.