Dealmaking in the global power and utilities industry will grow in 2015 as the lure of stable returns andcash flow tempts investors, according to EY. About 63 percent of respondents surveyed by the consulting firm in October expect more M&A activity in the next year, up from 28 percent six months ago, EY said in a report published today. Only 1 percent of the executives expect M&A in the sector to decline, according to the report. Power and utilities deals worth about $38.6 billion were announced in the third quarter, the highest since the same period in 2010, the report shows. Activity in the first nine months of the year reached $125 billion, already equaling the whole of 2013, led by Exelon Corp.’s $6.8 billion takeover of Pepco Holdings Inc., the industry’s biggest deal in three years. M&A activity is also moving to emerging markets as India, Mexico, the Middle East, North Africa and Eastern Europe accelerate reforms to liberalize energy markets, the report shows. Investors from developed markets are interested in emerging markets as a way to diversify their portfolios and generate better returns. Adani Power Ltd., the power generator controlled by Indian billionaire Gautam Adani, agreed to buy one of Lanco Infratech Ltd.’s thermal power plants for about $1 billion in August. bloomberg