Renewables accounted for 50% of energy transactions in 2015

Solar is being taken up in response to a volatile commodities market. Credit: SolarWorld

Renewable energy was the basis of half of all global power transactions last year with 245 deals adding up to US$68 billion and a particular focus on wind and solar, according to a new report from EY.

EY's ‘Power transactions and trends: 2015 review and 2016 outlook’ report found that investors round the world are adding these renewable technologies to comply with regulations and reduce their exposure to the increasingly volatile commodities market.

EY also reported that energy technology, spearheaded by battery storage and customers moving towards grid independence, will spark mergers and acquisitions with technology companies and utilities forming partnerships. However, EY noted that it is too early to see the impact of batteries and solar on network valuations. The firm expects network valuations to rise and then peak over the next 18 months as the long-term nature of distributed energy becomes clearer.

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