PwC: Romanian renewable energy deals expected after clearer legal framework

Big Four firm PricewaterhouseCoopers expects the Romanian energy market to generate transactions mostly on the renewable energy segment, “especially after the legal framework in this area will become clear,” according to the firm. “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. “If it does, we can expect promising conditions for the divestment opportunities that some companies will be seeking. In Europe particularly, this flow is likely to accelerate as firms free up capital and attract interest from sovereign wealth, infrastructure and pension funds”, added Lupea. he global power deal market is finally seeing an upward trend in momentum from the lows reached in 2009.Total deal value in the non-renewable electricity and gas sectors is up 19 percent year on year from USD 98 billion to USD 116 billion in 2010 – a year which also saw an end to the deal stalemate in the US with a renewed deal flow that looks set to continue this year. Compared to the heady mountain of power deals transacted between 2005-2008, deal values remain low but conditions are in place for a return at least to the foothills of these peaks, according to PwC’s annual Power Deals review. More about the PwC report here. editor@romania-insider.com