Power & Renewables Deals 2014 outlook and 2013 review

The 2014 Power & Renewables Deals outlook is the latest in our annual series in which we look at mergers and acquisitions activity in the power, utilities and renewables sector.

The power utilities sector is experiencing a period of huge transformation. Technology, finance and politics are all sources of disruptive change hitting the industry and this has been among the factors weighing on deals in 2013. Many uncertainties remain as we move into 2014 but we also see some encouraging trends that lead us, on balance, to anticipate upward deal momentum in the year ahead. In this section, we look at the influences on deals and specific expectations for power and renewables deal activity. In the later regional sections, we examine the deal outlook in each region.

2013 deal outlook: sector contrasts set the scene for deal revival

  • After a year in which M&A activity in the power sector moved down a gear, deal activity is set for a return to an upward trend during 2014.
  • Technology, finance and politics are all sources of disruptive change hitting the sector and this has been among the factors weighing on deals in 2013. Total worldwide power and renewables 2013 deal value was down 10% year on year. But the Asia Pacific region and the renewables sector bucked the trend. Renewables deal value rose 25% the value of Asia Pacific deals was up 6%.
  • The report expects a potential return of mega-mergers in the US power sector to be a key factor driving worldwide power and renewables M&A value upward.