Sydney Morning Herald
Thursday 18/3/2010 Page: 5
UNCERTAINTY surrounding emissions trading and the drop in value of renewable energy certificates has seen investment in renewables fall more in Australasia than anywhere else in the world. PricewaterhouseCoopers' 2009 Renewable Deals review, to be published today, shows that green deals fell 59% last year-from 29 in 2008 to 12 in 2009. The value of mergers and acquisitions dropped 69% from $357 million in 2008 to $111 million last year. The impact of the financial crisis meant all regions recorded less activity. However, a few mega-hydro transactions helped the value of deals in the Asia-Pacific and South America grow.
Five of the top 10 renewables deals last year involved hydro assets - the segment increased its share of the renewables pie from 26% to 45% in terms of value. Wind power fell out of favour with investors. It accounted for 42% of renewables deals in 2008 but only 19% in 2009. Mergers and acquisitions in the renewables sector are being driven by utilities which were on the buyside of a growing share of 2009 deals, accounting for 42% and 55% of deal value last year. However, infrastructure investors, private equity groups and other players maintain their high level of interest in renewables purchases.
The PricewaterhouseCoopers partner Andrew Petersen said he expected an increase in the number and value of renewables deals this year. Australia's growing mix of renewables would reflect the country's natural advantages. "In Australia, and for some in the investment community, it is wind, wind, and wind," he said. "Over the next five to 10 years it really has to be wind, solar and geothermal, with solar and geothermal battling it out for No. 2. We also can't rule out the opportunity biomass can play if the carbon pollution reduction scheme comes in."
0 comments:
Post a Comment