Renewables ride wave of success as opportunities in emerging markets soar

Global investment in Renewable Energy (RE) approached record levels in 2014, reflecting growing investor confidence and a greater recognition of the attractive opportunities that exist. The prominence of Solar Photovoltaic (PV) and Wind, along with the notable and growing shift towards developing markets, will be important contributors to investment and mergers and acquisitions (M&A) activity over the next few years.

Emerging countries such as South Africa can therefore expect to continue to attract the capital needed to develop their markets. As this report demonstrates, South Africa is a model case study for developers, investors and other market participants seeking opportunities in new, high growth markets.

Key conclusions from this report include:

  • The bulk of global RE investments are being spent using project financing principles and techniques.

  • Developers and investors are targeting new markets.

  • South Africa’s RE market is one of the great African success stories.

  • Other emerging RE markets are looking to South Africa as a template for success.

  • PE firms generally execute larger transactions and also tend to pay higher multiples for these transactions.

  • Volatile oil prices are unlikely to impact future RE projects.

 

Energy Renewables Investment Update