Findings show positive global outlook. U.S. the most attractive country for investors
Accounting, tax, and advisory firm CohnReznick LLP has released a report, “Green Energy 2013: Renewable Energy M&A Activity in the Americas”, published in collaboration with Clean Energy Pipeline. The report focuses on mergers and acquisitions (M&A) activity in the renewable energy sector in the Americas, based on a survey of more than 800 senior executives in the renewable energy industry worldwide.
The report found that the U.S. is by far the most attractive country for investors with almost 45% of survey respondents planning to invest in or acquire in the U.S. renewable energy sector during the next 18 months, more than double the number targeting 2nd place Germany. Globally, a total of 591 acquisitions valued at $37.8 billion were announced in 2012, a 58% increase by number on the 375 deals totaling $42.1 billion announced in 2011.
“The report provides insider analysis that is largely positive in terms of future growth, showing that industry leaders are nearly unanimous in predicting a positive outlook for M&A activity in the renewable energy sector, especially throughout the U.S.,” said Tim Kemper, Partner and National Co-Leader of the CohnReznick Renewable Energy Practice. “We can see that global renewable energy M&A activity has grown at a steady pace during the past four years.”
A few report highlights include:
- The Americas accounted for 42% of the total value of M&A deal activity last year.
- Wind and solar were the most active sectors, accounting for a combined 78% of the total value of all transactions.
- Solar is the most attractive sector for North American survey respondents. Some 63% of survey respondents are targeting investments or acquisitions in solar PV, more than the number targeting biomass (45%), onshore wind (41%) or biofuels (39%).
- Renewable energy projects are now cost competitive with newly built fossil fuel power plants in many Latin American countries.
- Canada is now the fifth most attractive country globally for renewable energy investment, showing a significant increase of survey respondents who are targeting Canada for clean energy investments than last year.
The report was written in collaboration with Clean Energy Pipeline, a specialist in renewable energy research, data and financial news provider. A full copy of the report can be downloaded here.
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