|
Detailed introduction of goods:
In the past 2016, the adequacy of electricity supply is the key factor to distinguish the market of the power industry in various regions. In developed markets, continued excess capacity of the new green trade still hinder the formation, and in developing regions, with the passage of time, new opportunities are increasingly obvious only in Africa and the Asia Pacific region will arrange 100 million kilowatts of new capacity to meet market demand.
In 2016, the power industry trading momentum, which regulated power grid assets and renewable energy investment occupies the dominant position: regulated power grid asset turnover reached $89 billion 300 million, accounting for 46% of the total value of the transaction, renewable energy assets trading volume reached US $28 billion 400 million, accounting for 15% of the total transaction value.
The attraction of the two assets of grid assets and renewable energy in the developed market fully reflects the imbalance of the market: overcapacity and low wholesale electricity price make the supply of projects in developed countries limited, which is difficult to match the relatively abundant capital supply in the region. Sellers in developed markets have gained a lot in this unprecedented competition for good assets, and emerging markets are just beginning to benefit from available capital supply.
In 2016, it also witnessed the entry of new energy transactions into the market. It has been seen as a highly risky and highly experimental renewable energy technology. Nowadays, these technologies have taken a place in the investment field, and become the main strategies for many investors who want to start diversification and enter the future value chain as early as possible.
Hot 2016
As the hottest asset in the industry, power grid assets continue to get a high premium in all areas. The most noteworthy M & A cases in 2016 include: 18 billion 400 million US dollars, NextEraEnergy acquired EnergyFutureHoldingsCorporation from Texas electric power provider. 14 billion 400 million dollars, the MacquarieInfrastructureandRealAssets led consortium bought NationalGridGasDistribution61% shares. 12 billion 600 million dollars, IndustryFundsManagementPtyLtd and AustralianSuper acquired the shares of the Australian T&D (T&D) Company Ausgrid50.4%.
In 2016, all subcategories of renewable energy continued to rise. In the region of the Americas alone, there are 46 transactions, totalling $8 billion 300 million.
In the Americas, although the Latin American region is alive, the most traded area is the United States. The United States has attracted large investments from foreign investors from Canada, Europe, Australia and New Zealand. These investors hope to get high returns from their home countries. The most popular asset is asset backed by PPA, which can provide a steady return and allow extensive capital participation.
On the other hand, due to the continuous market oversupply, the market of IndependentPowerProducer is still not optimistic, and it is trading in all regions. The Americas averages 2% over the long history, and the Asia Pacific is 17% compared to the long-term historical average, and the European average is 13% over the long-term historical average. There has been no significant improvement in the situation of independent power producers, and it is expected that the independent power producers will still be in the downturn in 2017.
The new energy business is on the mainstream investment agenda. As we expected about a year and a half ago, investors' preferences turned to new energy business in 2016, and then trading activities in this area have increased. Some large global utilities entered the new energy technology in 2016: Enel announced that they will acquire DemandEnergy100% shares of the US power storage system and software development and operator. E.ON is investing 5 million pounds for the British start-up KitePowerSolutions, a high altitude wind power innovation and technology research. Innogy expands its power storage capacity through the acquisition of PV (PV) and energy storage company BELECTRICSolar&Battery. The UK NationalGrid buys 201 thousand KW power storage capacity for $864 million.
Outlook for 2017
Outlook 2017, each region will be very different, but the global power industry trading market will continue to continue the active trend of 2016.
In the first place, Europe is still tough, forcing investors to go abroad. In 2016, most of Europe's electricity and utility trading activities were driven by the sale of regulated power grid assets. As investors and utilities have to deal with more complex transactions, both power generation and renewable energy acquisitions have declined. For example, the French utility EngieSA acquired the OpTerraEnergyServices of the US company, which provided a full range of energy and sustainable development management services in the first quarter of 2016. Centrica, a public utility company in the UK, bought Danish energy Asset Management Co NeasEnergyA/S for 244 million US dollars, hoping to bring synergies to its existing energy sales and trading businesses. In 2017, we expect investors to continue to look abroad, especially in the Asia Pacific region, to allocate capital, seek investment and withdraw opportunities to enhance competitiveness.
Secondly, the United States needs to pay close attention to it. As the most important country in the American power and utility industry, the United States will be the focus of investor concern in 2017. Rising interest rates and changes in President Trump's energy policy are likely to affect the investment environment, although the extent of the impact remains to be observed. It is worth noting that the US market is essentially oversupply, and does not need more power generation capacity. The most likely areas to trade are speculative renewable energy investment, natural gas peak shaving power plants and new energy investment.
Third, the capital will flow into the Asia Pacific region. As investment in Europe and the United States may force investors in these markets to seek opportunities overseas, the Asia Pacific Region
|