2024 a ‘pivotal’ year for renewables due diligence as market accelerates capital deployment

2024 a ‘pivotal’ year for renewables due diligence as market accelerates capital deployment

  • LiveDiligence sees a 25% uptick in project finance, investment and M&A deals processed through its digital due diligence platform in 2023.
  • The firm expects number of deals reviewed through the platform to more than double in 2024, as major technical, legal, insurance and financial advisories turn to software to manage complexity and expedite capital flow into new renewables.

Bristol, 14th December 2023 — LiveDiligence has seen a 25% year-on-year increase in transactions processed through its renewable energy due diligence platform, as lender and investor advisories turn to software to manage complexity and speed up the flow of capital into new projects.

In 2023, LiveDiligence was used on over 150 project finance and M&A due diligence reviews, a 25% increase from 2022, illustrating growing momentum behind the industry’s ‘reboot’ of its systems to accelerate renewable energy deployment.

However, following a mixed year for renewables in which geopolitical uncertainty, ongoing supply chain challenges and a changing regulatory environment hampered transaction volumes, LiveDiligence expects 2024 to be a pivotal year for renewable energy deals as investors and their advisory teams make up for lost time.

With commitments made at COP28 to triple global renewables capacity by 2030, the market needs to double down on its digital investment and significantly increase its capability to quickly assess project risks and get deals over the line.

Following the adoption of LiveDiligence by a number of leading engineering, legal and insurance advisory firms throughout 2023, the business predicts that deals processed through the platform will more than double next year - reflecting an overall increase in projects and pipelines being vetted by lenders and investors, alongside continued investment in the software being used to expedite the due diligence phase.

Craig Houston, Chief Product Officer, LiveDiligence, said: “Advisors tell us they have been grappling for some time with how to use technology to improve their services.  In 2023 we saw forward-looking consultancies move from exploration to adoption of new digital tools, driven by demand from their clients and the need to differentiate their service offering in a competitive market. This played a large role in helping us set a new record for transactions processed through LiveDiligence this year.”

“But really the market is barely scratching the surface when it comes to rebooting traditional due diligence - targeting reduced transaction timeframes, better knowledge management and ultimately improved technical and commercial risk management for a growing global pipeline of projects.”

“Faced with an increasingly complex risk landscape and an urgent need to get projects moving, we’re expecting 2024 to be the year in which due diligence rises to the top of the agenda for lenders, investors and their advisors. Conversations with our customers indicate that digital due diligence approaches are now front of mind for legal, technical, insurance and financial advisors seeking to enhance the delivery of their critical risk analyses.”

2023 has also seen the first due diligence reviews delivered entirely through the LiveDiligence platform, with all advisors - from the engineering team to the legal and insurance advisors - using the system as a collaborative hub for communicating with capital providers.

These multi-advisor deals illustrate the value the platform brings as a single source of truth for each transaction, playing an important role in streamlining the overall due diligence process - while enabling advisors to deliver their specialist knowledge more effectively.

Photo by Angie Warren