Renewable energy investments accounted for 50% of global power and utilities transaction activity in 2015, according to a new report from EY. The report says 245 renewables deals generated $68 billion, showing that investors around the world remain focused on adding wind and solar assets to their portfolios to comply with regulations and reduce exposure to increasingly volatile commodities.
The report, titled “Power transactions and trends: 2015 review and 2016 outlook,” says overall transaction activity for the global power and utilities industry maintained momentum in the fourth quarter, with deal value ending 2015 up 13% from 2014 at $200 billion – a six-year high. Alongside renewables, cross-sector convergence and midstream/upstream investment were primary deal drivers for utilities seeking new avenues for growth.
According to EY, convergence and diversification was especially strong in the Americas throughout last year as utilities sought strategic transactions to withstand economic volatility. Transaction activity in the U.S. accounted for 82% of Americas deal value and 35% of total global deal value.
Matt Rennie, EY’s global power and utilities transactions leader, notes, “Recent regulatory developments and five-year extensions to wind and solar tax credits will continue to bolster renewables investment in the country.”