PwC predicts low-carbon economy will usher in new era of corporate alliances

International moves to promote energy self-sufficiency and cut carbon emissions will create a unique opportunity for innovative start-ups to emerge as key infrastructure players over the next few years, according to a major report from PricewaterhouseCoopers (PwC).

The consultancy giant said the transition to a low-carbon economy will spark a period of historic flux within the business community, characterised by fast-emerging companies and heightened mergers and acquisition activity across the clean tech sector.

The report said that the rollout of smart grid and renewable energy technologies will also usher in transformative alliances between automakers, utilities, battery makers, communications providers and renewable energy firms as they each seek to play a role in the development of integrated low-carbon infrastructure projects.

According to the report, companies that identify their roles and capitalise on these new alliances earliest will establish sizable leads in nascent clean technology markets.

"The smart infrastructure market is creating a new era of convergence as companies collaborate and transfer key skills and assets across industry sectors,” said Tim Carey, clean technology leader at PwC US. "As the build-out gains traction, it has the potential to support a proliferation of new businesses across sectors, much like the evolution of both the semiconductor industry and the internet."

The report also predicts that new forms of public-private partnerships will be necessary in creating a ubiquitous, national smart grid, but these new models of collaboration must be closely managed to ensure technologies are rolled out quickly and effectively.

Underpinning these clean technology transformations is increased support from the investment community, which the report argued was recovering rapidly in the wake of the global recession.

According to PwC, venture capital investment in the clean tech sector rebounded sharply in the third quarter of 2009 to $898m (£557m) across 57 deals, almost doubling compared to the $475m invested in 49 deals during the second quarter.