US renewable M&A powers on
Continued deal-making fueled by strong demand for renewable energy
Merger and acquisition (M&A) activity in the U.S. renewable energy sector remained high in 2012, largely driven by increased participation from large-scale, integrated utility and power companies. For some, this came as a surprise.
Many proponents of renewable power saw the expiration of the U.S. Treasury cash grants as a major blow, even as they prepared for a second hit: the production tax credits for wind were set to expire at the end of 2012. With so much deal activity in 2011 and so little reason to be optimistic that federal tax policy would continue to stimulate wind development, some expected 2012 to be the first scene in a disappointing — and perhaps lengthy — second act for renewable M&A. The events of 2012, however, told a different story. Not only did M&A activity remain strong, but many also contend the stage has been set for continued momentum in 2013 and beyond.