hot spots and drivers of deal activity around the globe.M&A activity levels are showing no signs of cooling off in 2011, with a record 141 renewable M&A deals, totalling US$11.2bn, announced in the first quarter of the year. This represents more than double the average quarterly value of US$5.5bn in 2010, spread over an average of 96 announced deals. Commenting on the latest findings, Mr Sharad Somani, Partner, Global Infrastructure & Projects Group at KPMG in Singapore said, The renewable M&A market has had a busy start to 2011, with a substantial jump in global activity which looks set to continue. In particular, our survey has shown that deals in the US$50m - US$0.5bn bracket are likely to see the greatest increase. Overall, higher competition for targets is expected to push up global valuations driven by better financing conditions, a post-Fukushima reinvigoration of sentiment and soaring oil prices as well as some new acquirers, including Asian manufacturers and potentially pension funds.Asia rising star in renewable energyThe predicted growth in renewable energy M&A is expected to be underpinned by new investors and acquirers coming to the market from Asia. Some 78 percent of all survey respondents expect new players to come from China, and 42 percent from India.This trend is already evident. Asian companies made 59 renewable energy acquisitions in 2010, compared with 29 acquisitions in 2009.In China, the acquisition by Chinese turbine manufacturer Goldwind of the 106.5 MW Shady Oaks wind project in Illinois from Mainstream Renewables in December 2010 is a notable development. According to Mr Somani, the approach taken by the Chinese is holistic, It is not just about selling turbines. They are entering this space early and being in it for as long as possible. They are looking to deliver both capital and operational expenditure advantages, and provide investment capital backed up by a conviction of market recovery in the medium term.New players are also emerging from Japan and Korea. In late 2010, for example, the electric products manufacturing giant Sharp announced the acquisition of US solar project developer Recurrent Energy for US$305m. The Korean industrial group Doosan Power Systems also announced in March 2011 plans to invest up to 170m in Scotlands wind sector over the next ten years.Investing in ones backyardOne of the most striking findings from the survey is the regional-bias of investors and companies worldwide.According to the survey, American respondents are twice as likely to invest domestically in preference to China, India, Germany or the UK. European respondents are no different focusing on core European markets such as Germany and the UK.Asian respondents are less regionally biased but still indicate a strong preference towards investing within their own geographies ahead of the USA, Canada, Germany and the UK.In China for example, domestic acquisitions accounted for 63 percent of all renewable energy M&A activity in 2010 (US$1.9bn). By contrast, acquisitions of Chinese firms by US companies only accounted for 11 percent of the total value of Chinese M&A activity, whilst acquisitions by European companies represented a mere 3 percent.The survey responses suggest that countries may not