Last year there were listed transactions of 200 billion dollars globally in energy and utilities, 13% more than in 2014, shows the report “Ernst & Young Power Transactions and Trends”. The level achieved last year is the highest recorded since 2009.

Concerning the type of traded assets, wind and solar power accounted for around half of the total number of transactions, with 245 transfers with an aggregate value of 68 billion dollars.

“Next to renewable energy, cross-sectoral convergence and investment in upstream and midstream segments were the main drivers that accelerated trading activity for utility companies seeking new avenues for growth. Transactions involving convergence totaled 33 billion dollars in 2015”, said the representatives of EY, the publisher of this study.

Innovation, the use of knowledge from related fields and consolidation activities are on the agenda for utility companies of gas and electricity, stated Valeriu Binig (photo), Partner for Business Support for EY Romania.

“Utility companies are joining forces with more companies outside the sector to capitalize on synergies and common experiences. Megamergers in gas and electricity sectors in the United States, Japan’s telecommunication transactions and partnerships with strong technological component in Europe have highlighted the desire of finding innovative ways of increasing throughout the sector, over 2015”, he said.

Looking back to the assets in the renewable energy sector, transactions of this kind have contributed with 61% to the total value of transactions in Europe in the fourth quarter, while Germany, Italy, Spain and the UK were the main attractions, state the evaluators of EY study.

In return, the investor confidence in the conventional energy production segment declined. “While interest in energy based on coal and gas is declining, the value of utilities with high energy usage generated like that decreased, as evidenced by a 60% reduction in the share price of companies during 2015”, highlights authors of the document.

The profound studying on the transactions and behavior of companies dictates that there is an ever stronger convergence between utilities and technology firms, the authors say.

“In the context of record decline of the wholesale prices, with smaller allocations of funds and increased imbalances, utility companies turn their attention to energy services and the downstream area. This year we will see a greater convergence between utility companies and technology”, mention the analysts at EY.

The study can be downloaded from here.