However, to get a clearer picture of the overall state of the renewable sector in Australia and around the world, it is important to analyse power and renewables deals in more detail.
Worldwide M&A activity soars
According to a recently released report titled Power & Renewables Deals – 2016 outlook and 2015 review from PricewaterhouseCoopers (PwC), a new record was set in relation to mergers and acquisitions across the renewable energy sector last year.
Renewable activity reached US$55.3 billion, almost double what was recorded 12 months ago (US$28.3 billion). In almost every region around the world, year-on-year renewables deal values increased significantly – highlighting the real growth of cleaner and smarter energy.
Additionally, PwC noted that Australian power and renewables deals were again strong in 2015, underpinned by a number of sales. In fact, when the NSW Government sold Transgrid in November, this represented the third largest power deal in the world across the 12 month period.
What renewable activity will grow in 2016?
PwC's energy, utilities and mining leader Mark Coughlin explained that there is a real focus on climate and carbon issues and believes that investment towards clean generation will expand in 2016.
"On the generation side, we expect there will be very little future demand for coal assets, at least not at the prices current owners would like to see. Major baseload generators are starting to show their age and, combined with the international focus on climate and carbon issues, there will likely be some issues in getting these assets away – especially those with uncontracted output," he said.
"The rapid uptake in domestic solar technology has challenged the traditional networks' business model and we expect advances in battery technology will shortly have a similar impact. Utility players with network assets will need to work with the grain in regards to emerging technologies. Those that can will thrive."
"The rapid uptake in domestic solar technology has challenged the traditional networks' business model."
Is renewable energy good for business?
Of course, it is important to highlight the climate and environmental benefits of working towards renewable energy, but there is another side that is worth considering – economic improvements.
In Renewable Energy Benefits: Measuring the Economics, a report from the International Renewable Energy Agency (IRENA), global GDP could rise 1.1 per cent (US$1.3 trillion) if renewable energy reached 36 per cent globally by 2030.
This is certainly a critical figure, considering it is higher than the combined GDPs of Switzerland, South Africa and Chile.
"This analysis provides compelling evidence that achieving the needed energy transition would not only mitigate climate change, but also stimulate the economy, improve human welfare and boost employment worldwide. Mitigating climate change through the deployment of renewable energy and achieving other socio-economic targets is no longer an either or equation," IRENA Director-General Adnan Z. Amin explained.
Making changes today
Renewable energy is certainly something that business can adopt moving forward and with the assistance of Optimal Group, this is well within reach. As a leading industry-provider of Capstone microtubines, we can support your goal of more secure power services and the ability to adopt efficient practices such as co- and trigeneration.
Energy efficiency will be vital moving forward and it is up to innovative and forward-thinking businesses utilise this trend. To find out about how Optimal Group can add value to your operations, feel free to get in touch with our team today.