The chief executive of SSE, a British renewable energy and networking company, told Reuters that European oil companies' plans to increase renewable energy capacity were pushing up the prices of renewable energy businesses and projects.
BP, shell and total have all announced renewable energy expansion plans this year to reduce dependence on fossil fuels and achieve internal climate targets. Analysts say most of the growth needs to be achieved through acquisitions.
"I'm happy to see some of these companies join in and pay a decent price for their assets. This will help push up the price of the assets we sell, "Alistair Phillips Davies of SSE said in an interview.
BP agreed last week to buy 50% of two U.S. offshore wind development projects from Norway's equinor SSE for $1.1 billion, and SSE, which is seeking to divest about 2 billion pounds (US $2.6 billion), said it would sell at least 10% of its Dogger bank offshore wind power project developed with Norwegian equinor off the coast of the UK.
Earlier this year, SSE also sold a 51% stake in the first phase of seagreen, a British offshore wind farm, to total, France.
"On the whole, it's good news for the industry to see oil companies come in with their offshore experience. Although this will make the market more competitive, it will also bring new concerns and new technology and innovation. "Phillips Davies said.