Power & Renewables Deals - 2016 outlook and 2015 review

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2016 could be the high-water mark for Australian power and renewables deals following a strong year for transactions in 2015.

In our latest global report on Power & Renewables Deals we find that in Australia, corporate restructuring and network privatisations look set to keep deal activity high over 2016. Looking ahead, the combination of economic decarbonisation, technological disruption, changing customer behaviour and government policy will make for a subdued deals outlook.

In the Asia Pacific region deal activity surges in 2015

  • The NSW Government’s sale of Transgrid to a global consortium last November was the third largest power deal globally of 2015
  • Across the Asia Pacific region bidder deal value nearly doubled, from US$31.3bn in 2014 to US$61.1bn in 2015 accounting for 31% of worldwide power and renewables deal value
  • Target deal value in Asia Pacific rose significantly, from US$24.7bn to US$66.6bn – a new high in levels for the region surpassing the previous record of US$50.4bn for power sector M&A in 2007
  • Chinese buyers accounted for the majority of the largest deals with 7 out of the 10 largest deals in the region being purchased by Chinese entities

Strong global demand for renewables deals

  • Renewables deal volume remained steady but 2015 deal values increased markedly driving the share of renewables deals from 12% to 28% of the global power deals market in 2015 – a record high of US$55.3bn
  • A number of factors could help generate strong power and renewables deal flow globally during 2016 including ongoing corporate restructuring, a healthy deal pipeline in Europe, consolidation in the US, continuing renewables deal momentum and the attractiveness of steady returns from regulated assets to prospective buyers.

Contact us

Andy Welsh

Power & Utilities Deals Leader, PwC Australia

Tel: +61 3 8603 2704

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