PwC: More Renewable Energy Deals In Romania Once Legislation Becomes Clearer

05.03.2011 By Andrei Circhelan

European companies might seek to invest in conventional energy in Romania, but most transactions in the power market will focus on renewable energy production units, especially after legislation becomes clearer, consultancy firm PricewaterhouseCoopers said Tuesday.

"In Romania, transactions will come most likely in the field of renewable energy, especially after the legal framework in this area will become clear. We may also expect that major European players to decide to invest in conventional energy generation capacities, taking into account that the electricity demand in the future years cannot be covered from renewable sources only", said Alexandru Lupea, Partner, Assurance Services, Energy, Utilities and Mining Industry Group Leader with PwC Romania

The value of mergers and acquisitions in the global energy industry was $116 billion last year, up 19% from 2009.

According to PwC, government policies on "clean" energy will play an important role on the mergers and acquisitions segment this year, since the legal framework will have an increasing influence on the evaluation of energy assets.

At the same time, capital spending and operating priorities required by compliance with environment policies will reduce appetite for major acquisitions, but they will stimulate restructuring through smaller transactions.

"While we believe this deal revival will continue, much will depend on the extent to which demand returns in the main developed markets to give companies confidence in their capital expenditure renewal and new build programs," Lupea added.