The mergers and acquisitions (M&A) in the renewable energy segment dominated the global energy and utilities market in the first quarter of 2019, accounting for 61% of total transactions and marking an increase of USD 3.7 billion compared to Q4 2018, according to EY Power Transactions and Trends: Q1 2019 (PTT). For the entire sector, the total value decreased by 33% compared to the last quarter of 2018, to 20.6 billion dollars in the first quarter of 2019.

While the outlook for renewable energy is optimistic, governments continue to put pressure on traditional investments in fossil fuels. In Europe, Greece and France announced new plans to promote the development of the renewable energy sector, Germany is planning to shut down all 84 coal-fired power plants by 2038 and the Norwegian government has proposed phasing out oil exploration and exploitation and gas from its sovereign fund worth 1 trillion dollars.

In the US, local governments continue to support the evolution of the renewable energy segment after New Mexico joined the state authorities of California, Hawaii, Washington DC and Puerto Rico in adopting 100% carbon-free targets.

And corporations set their own renewable energy targets, with more than 150 companies committed to using 100% of these sources by 2050 through the RE100 global initiative. Corporations are now starting to conclude contracts to purchase electricity directly with renewable energy developers and not with local utility providers. In March, over 200 companies launched the Renewable Energy Buyers Alliance, with the goal of operating 65 gigawatts of renewable energy sources by 2025.

In Europe, the value of transactions in the energy and utilities sector decreased by 27% compared to the fourth quarter of 2018, to USD 6.8 billion in the first quarter of 2019, of which USD 5.4 billion were generated by two megatranzactions on the renewable energy market.