Investor concerns about energy security and climate change have led to increased interest in renewable resources such as wind power.

KPMG energy and natural resources co-chair Antony Cohen said greenhouse emissions and water are critical issues affecting pricing and timing of investment.

“Investors may shy away from coal-fired power station investments until there is further certainty around the implementation of the [carbon trading] scheme,” he said.

Government incentives promoting investment in renewable energy are also increasing investor interest in renewable resources.

The KPMG report highlights a continuance of cross-border consolidation in what Cohen describes as “ boom time” for the utilities sector.

“More activity can be expected over the next year. Although last year was a landmark year the trend looks like it’s here for sometime yet,” he said.