Renewables Deals 2012 outlook and 2011 review

This year's Renewables Deals reports deal activity in the renewable energy sector is providing a rare spot of sunshine amid the gloom in world markets and the global economy. Over the past year the value of deals in renewables hit a record high - surging 40 per cent from US$38.2 billion in 2010 to US$53.5 billion in 2011.

In addition to the growth in deal activity, 2011 will be remembered for a number of firsts; the value of individual deals in the wind, solar, biomass and energy efficiency fields broke through the $US1 billion barrier while activity in these "new renewables" topped hydro power, the heavyweight that has dominated the sector since PwC began measuring the sector in 2009.

PwC's lead partner in energy, Jock O'Callaghan, said it was a strong performance that occurred against a backdrop of volatile markets and global uncertainty over changing government policies.

"2011 can be seen as something of a watershed year and we can expect to see renewable sources such as wind and solar approach maturity in 2012 as the industry prepares for a long-awaited period of consolidation," Mr O'Callaghan said.

"The outcome will be fewer but bigger renewable energy players on the global stage - in other words, a more mature industry that will enjoy the benefits of economies of scale. This is good news for investors and for the industry."

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