Focus on renewable energies
Traditionally, there are five sectors in the field of renewable energies: Hydropower, wind energy, solar energy, geothermal energy and renewable resources (bioenergy).
- The generation of hydropower is costly and regularly leads to massive interventions in nature. The market will develop slowly here.
- Wind energy is already used to a large extent in Germany. There are many wind fields with the consequence that there are few sites for new fields. For a new wind field, one has to reckon with about ten years from the idea to the first generation of electricity from wind energy. Whether offshore wind power generation will prevail remains to be seen. The expenses for this are considerable. The market for wind energy will therefore continue to develop, albeit not as stormily as before.
- Solar energy has won many friends in recent years. It should be noted, however, that it was considerably subsidized, at least in Germany. Another disadvantage of solar energy is that it can only be generated when the sun is shining. For use beyond the home, the issue of storage capacity and grid switching must be resolved. There will be significant efforts here in the future. Here, too, the market will therefore not develop excessively.
- The use of and market for geothermal energy will be slow in the coming years. It is still too uncertain what lasting consequences the intervention in nature will bring.
- Bioenergy promises the greatest growth potential in the overall view of nature compatibility, visual impact on the landscape and energetic efficiency.
The extraction of hydroelectric power will remain the preserve of the large corporations. It is not suitable for private households to generate their own energy. There will be no significant investor involvement. The same, although for different reasons, applies to the extraction of geothermal energy.
The situation is different for the generation of wind energy and solar energy. Both national and international investors will continue to expand these areas. Germany already has a leading position in the field of wind energy, so the potential for increase is comparatively small. In the area of solar energy, it remains to be seen when politicians will consider further cuts in subsidies. — The commitment of German and international investors in the field of bioenergy, on the other hand, appears to be unbroken.
There are no particular complexities in M&A transactions in the renewable energy sector. Of course, it “does no harm” if the consultants working in this area have at least a basic knowledge of the actual subject matter. However, this does not distinguish (legal) advice in the field of renewable energies from advice in other specialized fields.