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Renewables account for 41% of total utility deal volume in Q3 - EY

Image by: Green Energy Markets (www.greenmarkets.com.au).

November 13 (Renewables Now) - A new report by EY shows that 52 renewable energy deals have been sealed worldwide in the third quarter (Q3) of 2018, which represents 41% of the global deal volume recorded in the power and utilities sector for the period.

The other 59% were gas utilities transactions.

The global power and utilities deal value year-to-date has reached a new record of USD 241.8 billion (EUR 215m), according to EY’s Power transactions and trends: Q3 2018 (PTT). This includes USD 61.9 billion worth of Q3 2018 deals compared with USD 83 billion in the prior quarter.

In the Americas, total Q3 deal value rose 7% quarter-on-quarter to USD 28.8 billion, which represents 46% of all such deals worldwide for the period. Renewables in particular accounted for USD 4.5 billion, including Consolidated Edison Inc’s (NYSE:ED) pending USD-2.1-billion acquisition of assets from Sempra Energy (NYSE:SRE). The US accounted for 96% of the total deal value, EY points out.

In Europe, total deal value in Q3 dropped 78% to USD 10.1 billion, with renewables accounting for USD 8.1 billion and thus recording a weaker-than-expected quarter. One notable Q3 deal is US-based Global Infrastructure Partners’ (GIP) agreement to buy a 50% stake in the under-construction 1,218-MW Hornsea 1 offshore wind farm in the North Sea from Danish energy company Ørsted A/S (CPH:ORSTED).

EY notes that investment certainty should be bolstered into the fourth quarter of the year with the conclusion of discussions among the 28 EU member states about the future framework of the electricity market.

In the Asia-Pacific region, total deal value surged by 118% quarter-on-quarter to USD 22.5 billion mainly thanks to a USD-16.3-billion gas utility transaction involving APA Group in Australia, which is likely to be blocked.

(USD 1.0 = EUR 0.889)

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Ivan is the mergers and acquisitions expert in Renewables Now with a passion for big deals and ambitious capacity plans.

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