Ernst & Young: Cleantech M&A Activity Up 41%

Ernst & Young released their latest global Renewable energy country attractiveness indices report this week.  According to the data, an estimated US$21.7 billion worth of global renewable energy transactions were completed in Q1 2012, representing a 41% increase over Q4 2011.

“Growth is top of mind for leading cleantech companies who are meeting the challenge of transitioning to a low-carbon and resource-efficient economy with proactive energy strategies involving the C-suite level,” says Stephen Lewis, leader of Ernst & Young’s Renewable Energy Advisory practice in Canada.

As the world is still in the midst of resource constraints with the global economy, the cleantech industry has the unique opportunity to transform markets dramatically in the next five years. Forecasts already predict robust growth across the Canadian renewable energy industry between now and 2015.

“From startups to large corporations and national governments, we’re seeing more and more organizations worldwide embrace cleantech as a means of growth, efficiency and competitive advantage,” says Lewis. “But only those with a comprehensive and diverse energy strategy will be able to take advantage of today’s resource-constrained world.”

How Do Canadian Provinces Stake Up With M&A Activity?

That said, while opportunities abound, there are also many risks within each province that could hamper growth and impact the success of Canada’s renewable energy sector, including:

  • British Columbia: Political risk surrounding rate sensitivity and future calls for projects
  • Alberta: Access to transmission and challenges in securing long-term power purchase agreements
  • Ontario: Access to transmission and the enactment of new feed-in tariff rules
  • Quebec: Ability for the Quebec government to continue stimulating its wind market
  • Nova Scotia: Access to transmission