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HSBC advising on renewable-energy acquisitions as prices decline

HSBC Holdings, Europe’s largest bank, is advising on potential acquisitions of renewable-energy companies as an oversupply of equipment in the wind and solar industries drives down prices.

“We are at present advising on a number of cross-border mergers and acquisitions deals,” Jaume Pujol, managing director and head of European Renewables for London-based HSBC, said in a telephone interview.

The renewable-energy industry is consolidating as cuts to subsidies in countries including Germany and Spain slow growth, he said. Industrial and energy companies are seeking to shift from developed, mature markets to emerging regions that are growing, including Saudi Arabia, South America and Asia.

“Those companies that traditionally have been local or regional now need to become more global, requiring substantial amounts of capital,” Pujol said.

Prices for solar panels fell 45 percent in the past year, and wind turbine prices dropped 6 percent in the 12 months through the end of the second quarter, according to Bloomberg New Energy Finance.

HSBC is also working on “equity raisings” for some clients considering expanding their portfolios and is evaluating financing opportunities for wind and solar projects, especially in emerging markets, he said.

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