A wave of optimism and investment in renewable and alternative energy is surging through the energy industry. And, unlike the enthusiasm that followed oil shocks in the 1970s, most believe today's surge is likely to be longer lasting. In fact, the International Energy Agency predicts that US$1 trillion will be invested in renewable energy sources (not counting hydroelectric dams) by 2030. High oil and gas prices and evolving technologies are reducing the price premium for renewable and alternative energy. In addition, concern about energy security, global warming and other environmental degradation make renewable energy even more attractive.
It is apparent to most that world energy demand is growing at a rate that requires alternatives, such as wind, biomass, fuel cells, solar etc. to be included in the fuel mix going forward. Industry companies are expanding their renewable portfolios either organically through project development or through mergers and acquisitions. Each route has its respective advantages, depending on market conditions and timing. Challenges in the renewable energy market include knowing the most profitable markets worldwide; maximising project portfolio value; actively managing project risks with regard to changing market conditions; being aware of the local specifics when competing for projects; and seizing the opportunities a renewables investor is offered by national / international regulations and subsidy regimes.
How PricewaterhouseCoopers can help you
PwC has extensive experience working with clients who are deeply involved in renewable and alternative energy and who are on the leading edge of developments in the sector. We provide professional advice to the largest wind company in the world. We are a prominent leader in the hydrogen and fuel cell sector, not only providing professional services to sector companies, but also participating in research and authoring key publications, including our annual fuel cell industry survey. Our globally integrated network of business advisory professionals spanning around 150 countries and territories has worked with clients across all stages of renewable energy projects:
Valuation & strategy
The strategic and fundamental decisions you take about your business require an accurate understanding of the evolving markets for renewable generation and how and when to structure participation in it. Our comprehensive valuation services can give an understanding of what drives value and how best to capture it – whether needed for current planning or forecasting tomorrow’s options.
- Development of investment strategies
- Studies on market entry and competitive advantage – where in the value chain
- Risk management through portfolio structuring and corporate governance
- Analysis and valuation of targets and partners
Project finance
Securing and implementing tailor-made financing solutions is a key success factor for project development and project implementation.
- Commercial and financial structuring of projects
- Risk allocation / mitigation strategy
- Ensuring bankability of project structures
- Arranging competitive finance
- Strategic refinancing
Mergers & acquisitions
Providing advice for companies seeking expansion through non-organic growth.
- Developing and assessing strategic options
- Defining market positions and warding off hostile bids
- Finding and approaching targets
- Transaction advice on bid and sell side
- Strategies to reduce taxes
Climate change services
Assessment of the impact and the use of the Kyoto mechanisms on corporate strategy and operations.
- Preparation of application materials and advice on the negotiation process for the assignment of emission rights under Joint Implementation of the Clean Air Act
- Development mechanism
- Baseline studies
- Assessment and certification
- Assessing transaction opportunities for emission certificates
