RE a secure destination for investors' money?
07/17/2012
Wind blows in favour of onshore projects
The onshore wind sector is currently undergoing a heavy period of consolidation. Some 227 M&A deals totalling $25.2 billion were announced in 2011, a significant increase on the 203 deals totalling $12 billion in 2010. Going ahead, in 2012, the activity shows no signs of cooling off, with almost 40 per cent of corporate and investor survey respondents currently planning to acquire in the onshore wind power supply chain, up from 30 per cent last year.
Offshore wind - still a risky proposition ….
The survey clearly predicts that the majority of M&A activity in the near future is likely to take place in five countries - USA, India, China, Germany, and South America. Europe is still battling with the Eurozone crisis and the UK has not even found a place in the top-five list of most targeted countries.
Emerging markets have become significantly more attractive to corporates and investors globally during the past twelve months. South America enters the top-five list of targeted regions for the first time this year. In many up-and-coming markets, the desire to embrace renewable power is being supported by a rapidly growing demand for energy. "Despite issues and challenges, there are a number of positive trends such as ever-increasing Asian outbound renewables investment to all corners of the globe; mammoth infrastructure spending plans in regions as diverse as Latin America, Africa and India; increasing identification of renewables as a mature asset class by financial investors; deployment and uptake of technologies such as offshore wind, etc," assures Andy Cox, whose team has been working on KPMG's annual renewable energy M&A survey for five years now.
www.power-eng.com/news/2012/07/17/...-for-investors-money.html
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