Renewables deals: 2010 Annual review

Welcome to the third edition of Renewables Deals, an annual review by PwC of deal-making in the renewable energy sector. It sits alongside its companion report – Power Deals – and, together, the two publications provide a comprehensive look at trends and the outlook for M&A activity in the power utilities sector.

This report examines the rationale behind the overall trends and the key individual deals in the renewable energy sector. This year we have expanded our analysis to cover the increasingly important field of energy efficiency as well as looking separately at important initial public offering (IPO) activity. We also highlight, in a series of deal dialogues throughout the report, some of the critical issues for companies engaging in deal activity within the sector drawing on our global experience as an adviser to players in major deals in renewable energy markets.

More deals for smaller values. 2010 was a busy year for renewables deal-making with the number of deals rising by twothirds year-on-year, from 319 in 2009 to 530 in 2010. But this was accompanied by a big fall in total value, from US$48.8bn to US$33.4bn. Just over a third - US$5.7bn - of this US$15.4bn fall in value can be attributed to two fairly exceptional large European sales by Endesa and E.ON in 2009 that boosted that year’s total.