IMAP, Inc., an exclusive global merger and acquisition (M&A) organization, declare the availability of its 2010 Alternative Energy Global Report. The report details M&A activity in the alternative energy industry by country and region for the last 12 months, growth projections for the remainder of 2010 and beyond, and insight into industry trends. Although the global economic recession had a deep impact on worldwide energy demand, the global alternative energy industry continued to expand rapidly over the last 12 months.
In 2009, the demand for worldwide energy saw its first decline since 1982. However, the combined revenue of the three major sources of alternative energy was $144.5 billion, up 15.8 percent from 2008. Government support, including stimulus packages, helped to boost the global capacity for wind by 31 percent, solar by 47 percent and biofuels by 21 percent. Additionally, for the first time in 2009, energy smart technologies such as digital energy applications, power saving appliances and electric vehicles attracted more venture capital and private equity investment than any other renewable energy technology. Although the industry faced the 2009 financial crisis in North America and Europe, its long-term growth fundamentals remain intact.
From the second quarter of 2009 through the second quarter of 2010, the industry saw 391 transactions, valued at $20.4 billion in total transaction value, up 54.8 percent in deal value versus the previous period. Solar and wind accounted for nearly 58 percent of total dollar volume for the period. In terms of country, China saw the highest transaction value of $5.4 billion with a total of 23 transactions during the last 12 months. The U.S. came in second with a transaction value of $2.6 billion from 72 transactions, followed by Spain, the Philippines and India. Among regions, Asia led with a total of 63 transactions, followed by Europe with 183, North America with 110 and the Middle East with 4.
Ketil Wig, chairman of IMAP’s Energy & Power Industry Group, said, “Although investors are cautious, research and development spending by governments and corporations amounted to $24.6 billion in 2009. The cost of clean technologies is decreasing and these technologies are being utilized in more applications. Within the next decade, we expect solar photovoltaic (PV) installations, smart meters, energy storage devices, wind turbines and other clean technologies to become commodities and help the market to mature.”
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