Bubble in renewable energy seen
LONDON (Reuters) - A bubble may be developing globally in the renewable energy sector as bidders compete for assets and send prices up sharply, a survey of over 200 industry executives compiled by accountants KPMG found.
Despite the fears that assets may be overvalued, around 60 percent of executives surveyed said they expected to see further consolidation in wind, solar and biofuels.
Thirty percent expect to purchase such a company themselves between now and 2010, the survey said.
Earlier this year, oil giant BP Plc said it may part-float some of its green energy assets because Chief Executive Tony Hayward said BP's own market capitalization did not fully reflect the high market values of such assets.
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Fears over climate change have boosted interest in renewable energy and government incentives such as mandates that green sources should account for a portion of the total motor fuel or power markets have helped make the industry more economically viable.
(Reporting by Tom Bergin, editing by Elizabeth Fullerton)