Activity is expected to accelerate in H2 2023, as the continent witness rising investor interest for development assets
Europe shifts to a seller's market for development assets: Demand for development assets has surged in Europe, led by Spain, UK and Italy. This is attributed to faster permits and lucrative revenue potential due to high power prices. This will result in investors paying premiums to acquire pipelines, with average EV/MW for these transactions expected to witness over 50% surge in 2023.
Activity to accelerate in H2 2023, mirroring last year's pattern: High capital cost and supply chain issues have forced buyers and sellers to recalculate potential returns, hampering deal activity in H1 2023. However, activity is expected to pick up pace in H2 2023 as easing market volatilities and ability to lock-in long-term PPAs at elevated prices will spur interest from a broadening investor pool.
The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.
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