Deals for new generation from renewable technologies are entering the 'big time' driving the market to new record highs, reports accountants PwC.  

In its annual global analysis of merger and acquisition transactions PwC says renewable power deal values rose 40% year on year, from $38.2bn in 2010 to a record level of $53.5bn in 2011. 

According to a new report, released today (January 30), billion dollar deals dominated, as solar, wind and energy efficiency deals overtook hydropower as the driver for big deal values for the first time. 

One in every three deals last year was solar and overall deal value for the sector is up 56% from US$10.2bn to US$15.8bn. 

A reappraisal of the role of nuclear in many countries' national energy strategies after the Fukushima emergency has provided an extra impulse for renewable generation in certain markets. 

There was also continued strong momentum behind deal activity in the solar and energy efficiency sectors. 

Buoyed by the increase in big transactions, deal value in these two sectors nearly doubled year on year. 

Together, they account for the vast majority (79%) of the US$15.3bn increase in the total value of all renewables deals. 

Falling solar prices are making solar power more economic and closer to grid parity in some markets. 

While the entrance of pension and insurance funds, most notably the $1.3bn investment by Danish pension insurance groups in offshore wind in Denmark, confirms the trend towards a maturing market and the creation of secondary markets, with assets sold for a second or third time.