The
renewable energy space is expected to see a high level of M&A
activity in the next 12 months, according to a new report published
by mergermarket, in association with Rödl &
Partner.

In
a survey conducted in Q2 2011 of 100 senior M&A practitioners
involved in the renewable energy sector, 72% expect an increase in
renewable energy M&A activity. This bullish sentiment could be
attributed to a number of factors, including the devastating
effects of the Fukushima disaster.

 

Roughly  67% of respondents expect
Europe to be at the forefront of this increase, forecasting the
region will see significant activity. 
 

Dr. Marcus Felsner, Rödl & Partner Nuremberg, noted that
“The renewables industry has established itself as a major pillar
of global economic growth. Given the dynamic of events earlier this
year, the commercial, political and social drive for fossil fuel
independence has only further empowered investors, big and small.
High transaction activity in this promising sector - both in
developed and emerging markets - is poised to continue well into
the future.” 

This is attributed by some respondents to Europe’s
variety of resources, with one respondent noting that: “Europe has
a great diversity: The Nordics are great for wind power; Italy,
Spain and Greece for solar; and continental Europe for geothermal
and biomass.”

 

The long-term feed-in tariffs introduced by Germany are
also highlighted as an important aid in bolstering renewable energy
investment.

 

The renewable sector globally has seen 51 deals at a
total value of €10.6bn this year-to-date. Iberdrola’s pending 20%
stake bid for Iberdrola Renovables SA is the biggest deal of the
year at €2.6bn, followed by Electricite de France SA’s €1.5bn bid
for EDF Energies Nouvelles SA (50% stake).

 

Additional findings in the report
include: 

• 
  
  A
  number of respondents commented on the recent Fukushima disaster,
  believing it will prompt a movement towards rethinking nuclear
  energy, making the renewable energy sector an attractive
  alternative; 
  
  
  
  
  
  



• 
  
  
    Respondents are split with regards to
  what impact the revolutions in North Africa will have on the
  renewable energy sector, with 44% believing that it will have an
  impact and 41% believing that it will not. A small percentage of
  respondents remain uncertain;
  
  
  
  
  
  



• 
  
  More
  than two-thirds of respondents (67%) say that emerging markets are
  very important in the context of M&A activity in the renewable
  energy space;
  
  
  
  
  
  



• 
  
  The
  wind power and solar thermal niches are expected to see bustling
  M&A over next year, while biomass gains greater
  prominence;
  
  
  
  
  
  



• 
  
  
  Respondents deem SPVs as an ever more attractive option for
  acquisitions, while interest in classical share deals wanes;
  
  
  
  
  
  



• 
  
  Nearly
  three-quarters of the survey pool (72%) believe government support
  will be a very significant external driver of M&A activity in
  the renewable energy sector over the coming year;
  
  
  
  
  
  



• 
  
  Nearly
  one-third of respondents (31%) believe feed-in tariffs constitute
  the most effective government policy for driving investment in the
  renewable energy sector.
  
  

href=”http://www.mergermarket.com/PDF/RoedlPartners_Renewables_2011.pdf”
target=”_blank”>Click here to download the full
report