In the News
Canada’s Renewable Energy Sector About to Take Off – Report
Despite a small role in renewable energy Mergers and Acquisitions boom, Canada is set to take off says PriceWaterhouseCoopers. Sector support to help spur venture capital, corporate and private investment activity is needed.
The report identifies six reasons why Canadians will be at the forefront of global energy deal making going forward.
- Continued aggressive Canadian regulation will spur domestic venture capital and private investment activity. Government subsidies and sector support provide clarity on a renewable energy project’s economic return. This, in turn, tends to spur venture capital, corporate and private investment activity.
- Sector maturation combined with limited access to project finance will fuel horizontal and vertical consolidation. The Canadian sector is ripe for consolidation. Many projects are approaching maturation and are ready for construction. However, junior developers will continue to find it challenging to access project finance for development, leading to more M&A in the sector.
- Canadian corporate social responsibility frameworks will prompt a flurry of investments and mergers to meet corporate demand for clean energy. Across Canada, several major corporations such as Loblaw and IKEA announced plans to install solar panels on some of their stores. Renewable energy production capacity will have to ramp up to meet increasing demand from corporate Canada.
- Inflation indexed yields offered by renewable projects will attract institutional capital. In today’s investment climate, funds are increasingly seeking out investments that can provide inflation indexed long-term yields. As a result, we expect that projects subsidized by the Canadian government, which effectively are guaranteed annuities indexed to inflation, will be highly attractive targets for institutional and pension funds.
- Long term growth opportunities in the renewable sector will incentivize utilities and oil and gas players to make opportunistic Canadian buys. Consider that renewable sources currently provide only a fraction of global energy needs, long term growth opportunities in the sector are compelling. This should prompt traditional oil and gas players to diversify into renewable.
- Emerging market growth to incentivize Canadians to “look past the U.S. border.” Brazil, China and India are among the fastest growing regions in the renewable energy sector. To help meet demand in a sustainable fashion, governments in each of these nations are implementing numerous feed-in-tariff and other subsidy programs.
Link to article
Link to PwC report
***
Please email your questions, comments and/or feedback to investor@syntaris.com
Third Party Link Disclaimer:
All links contained on this page are to other websites which are at arm’s length to Syntaris Power Corp. Users should be aware that in accessing information on these outside websites by clicking on a hyperlink on this page, he or she is leaving Syntaris Power Corp.’s website and Syntaris Power Corp. has no knowledge or opinion of the completeness, accuracy or currency of such information. Users may rely on such information solely at their own risk.
Historical Information Disclaimer:
This section of the website contains historical and archived information. This information is historical in nature, has not been updated, and is current only to the date indicated for each item of information or link to a webpage containing the information. This information may no longer be accurate and therefore you should not rely on the information and should refer to our latest press releases, reports, and other information. To the extent permitted by law, Syntaris Power Corp. and its employees, agents and consultants disclaim all liability for any loss or damage arising from the use of, or reliance on, any such information, whether or not caused by any negligent act or omission.