Enerdatics in Media

Market intelligence and renewable energy transaction analysis firm Enerdatics predicts that new annual contracted capacity in Europe will reach 10 GW by the end of 2024. In France, PPAs total 0.5 GW of capacity this year for a median duration of 20 years, compared to 10 years in Germany, Spain and the UK.

Despite automakers' delayed production plans and slowing electric vehicle growth, battery startups raised at least $5.2 billion from institutional investors this year, including $4.9 billion in August and September, according to an Automotive News analysis of fundraising rounds.

By region, green M&A rose 80% in the US, to $40,000 mn, surpassing Europe, which stayed at $32,000 mn. According to Enerdatics, in Spain the value of operations fell by 24% "due to the complex regulations for permits for new facilities", but they could rebound in 2023.

The European energy landscape is evolving, and France is emerging as a notable player in the field of solar power purchase agreements (PPAs) for businesses. But government support is essential to unlock the full potential of this market.

Agrivoltaism is a leading figure in European solar development strategies and France stands out for the appetite of its industrial and institutional investors in this segment.

PE firms haveAccording to Enerdatics, farm-ins have become the preferred mode of entry of funds into large-scale, capital-intensive renewable energy projects, primarily due to the lower development uncertainty associated with those that have been reasonably devoid of risk by the developer.

Renewable energy analytics firm Enerdatics finds that in the UK, Germany and Spain, M&A is dominated by asset and portfolio deals, while in France these do not have represented only a fifth of the volume of transactions since 2019. In France, it is in fact corporate buyouts and investments that have dominated the mergers and acquisitions landscape.

M&A deal value in Asia Pacific increased by 11% year-on-year to $19 bn in 2022, primarily due to a surge in onshore wind and geothermal M&A activity. The latest data from Enerdatics, showed India and Australia led the M&A activity with a 72% rise in onshore wind deals to $7.4bn, driven by PE firms, oil majors and large-integrated utilities.

Alantra launched N-Sun Energy – in partnership with Solarig, with backing from Reichmuth and Amundi. N-Sun will be backed by €1bn in debt financing and €700mn in equity capital. Enerdatics research, aggregate solar PV capacity in Italy more than doubled y/y to more than 5 GW in 2022, while the capacity in Spain declined slightly to 27 GW during the year.

The project is being developed by WestWind, a company that oil major Shell a in earlier in 2022. According to Enerdatics’ research, the advent of innovative financial structures and products that are emerging for renewables investments has reduced the necessity of a PPA, with several projects now operating on a fully-merchant basis.

“The portfolio’s total enterprise value (EV) is $1 billion, implying an EV multiple of $4 million/MW for the transaction. The projects comprise 70 MW of operational capacity spanning three PV plants and 180 MW of under-construction capacity across five PV plants,” reported Enerdatics.

Enerdatics believes that constructive dialogue between developers, financiers and the administration will be critical to navigate through the various obstacles en route to positioning the US as one of the world’s leading offshore wind markets.

According to Enerdatics, the solar sector leads the renewables M&A (mergers and acquisitions) landscape in Asia, accounting for 66 percent of overall deal volume and 78 percent of total deal value in 2021.

The deal, announced in February, is the largest renewable energy acquisition in Japan more than five years, based on transaction value and power capacity, according to research firm Enerdatics.

The solar sector dominates the renewables mergers and acquisitions (M&A) landscape in Asia, occupying a 66% share of the total deal volume and a 78% share of the aggregate deal value in the region, in 2021, said Enerdatics.

Chevron, wpd, Macquarie’s GIG-owned Blueleaf Energy, and AES are among the international investors who have announced partnerships to pursue onshore wind, geothermal, and utility-scale solar projects in the country in recent years,” noted Enerdatics.

Shell expand its ability to provide novel integrated energy services and electric vehicle charging solutions. Shell bought ESCO Pacific, a developer and asset manager of utility-scale solar projects, in December 2019,” reported Enerdatics, a research company.

“TATA Power and Adani Green, large-cap industrial conglomerates operating in India have recently stepped up their renewables activity. With this deal, JSW’s operational and under-construction power generation capacity reaches 9.1 GW, 65% of which is renewables-based.” noted Enerdatics.

“The venture will concentrate on utility-scale solar PV while also looking into onshore wind and energy storage systems. According to industry estimates, 1 GW of solar PV can power the annual daytime consumption of more than 1.2 million homes.” reported Enerdatics.

Transactions for sub-50MW portfolios of assets surged by about 50% year-on-year in 2021, according to Enerdatics data. This was driven by the need for renewable energy sources to satisfy residential electricity demand.

According to Enerdatics, in 2021, the volume of transactions in the portfolio of assets under 50 MW increased by about 50% year-on-year. In addition, falling installation costs and constraints on land availability have also spurred the growth of small community solar and rooftop PV projects.

The agreement with Tata will help RWE achieve its goal of increasing its global offshore wind capacity from 2.4 GW to 8 GW by 2030 by tapping into attractive growth markets in North America and East Asia, said Enerdatics, a research company.