Mordechai Gal: renewable energy M&A expert? Renewable energy is defined as the contribution of renewables to total primary energy supply (TPES). Renewables include the primary energy equivalent of hydro (excluding pumped storage), geothermal, solar, wind, tide and wave sources. Energy derived from solid biofuels, biogasoline, biodiesels, other liquid biofuels, biogases and the renewable fraction of municipal waste are also included. Biofuels are defined as fuels derived directly or indirectly from biomass (material obtained from living or recently living organisms). This includes wood, vegetal waste (including wood waste and crops used for energy production), ethanol, animal materials/wastes and sulphite lyes. Municipal waste comprises wastes produced by the residential, commercial and public service sectors that are collected by local authorities for disposal in a central location for the production of heat and/or power. This indicator is measured in thousand toe (tonne of oil equivalent) as well as in percentage of total primary energy supply.
The world needs more green energy to replace fossil fuels as an energy source. And strong demand tends to make a good case for energy investments such as wind and solar powers. However, there are other factors that determine whether backing renewables with your money is the right decision for you. These include the health of the global economy, local regulation and policy. When the global economy is strong, demand for power soars and its price grows. This means that the value of companies producing power begins to rise. On top of increased appreciation of sustainability and higher green investment, the pandemic also accelerated the shift to automated, digitized processes. This has laid the ideal foundation for jobs in renewable energy technology.
Mordecai Gal, operations director at AccessHeat Inc, said : This year’s record renewable electricity additions of 290 gigawatts is yet another sign that a new global energy economy is emerging. The high commodity and energy prices we are seeing today pose new challenges for the renewable industry, but elevated fossil fuel prices also make renewables even more competitive. Solar energy is the energy that comes from the sun can be harvested by various technologies including solar panels, either on individual homes or in large solar farms. Solar energy now accounts for about 4% of the UK’s electricity.
To encourage a green recovery from the pandemic, the European Green Deal Investment Plan (EGDIP) aims to mobilize at least €1 trillion in sustainable investments over the next decade to simultaneously scale up clean energy employment with millions of jobs, encourage economic growth and reduce greenhouse gas emissions. A win for the economy, workers and the planet. The coronavirus pandemic also encouraged jobseekers to redirect their careers to pursue meaningful jobs with long-term security. As an increasingly important component of the global economy, renewable energy is no doubt here to stay. It also allows people who have become more acutely aware of the impact of their daily choices (such as the emissions saved by reducing travel) to see tangible benefits from their day-to-day work. Nothing makes the futility of a job more apparent than eight hours straight of unnecessary zoom calls from your living room.
We are seeing a wide range of transactions in the renewable energy consolidation market, prompted by a broad spectrum of drivers. Although recent changes in the laws and regulations governing filings with the Committee on Foreign Investment in the United States (CFIUS) have increased the complexity and timelines for some cross-border renewable energy transactions, non-US investors continue to show keen interest in US renewable assets. The number and variety of prospective purchasers has heightened competition for good renewable energy projects, with the result that buyers are increasingly willing to acquire projects during development and construction, and thereby to prioritise the project’s prospects over the risks presented by the development process. Renewable energy M&A transactions are increasingly involving the acquisition of portfolios of projects rather than individual projects, and the acquisition of renewable energy companies as ongoing businesses, so that the buyer can obtain the benefit of the development and operating personnel of the target.
Much of the M&A activity in renewables is being driven by traditional energy businesses scrambling to acquire new capabilities and institutional investors looking for stable and predictable returns. In addition, we see diversification of the landscape with new players like oil and gas companies coming into the game. Utilities are also racing to keep pace with public demands to tackle climate change. Another deal driver is renewable energy integration. Australia, for example, is facing some of the most complex integration of renewables in the world, with coal down 20 percent since 2008 and wind power up 325 percent in the same time period according to the Australian Energy Market Operator (AEMO). There is also the “potential for an annual energy shortfall in the domestic gas market” in eastern and southeastern Australia. Solar and wind power, while on the rise, are dealing with a fragile and stretched energy grid in many areas. While integrating such a complex energy mix can cause headaches for end users and government policy-makers, it gives investors opportunities.
With concerns about impending climate change on the horizon, coupled with the rapid depletion of fossil fuel resources, the renewable energy sector is well-positioned for growth in the coming years. In many cases, this industry segment has been identified as a crucial element to our planet’s sustainability as we know it. Because of this urgent need, many renewable energy ventures are supported by the government and are given additional financial backing to expand this industry. Access-Heat.com will invest in and guide you to the most favorable outcome possible with your renewable energy business consolidation.