Mergers and acquisitions in the energy and power sector reached $129 billion in the first three quarters of this year, up from $120 billion in the same period last year, despite a slowdown in the third quarter. Valuations are stabilizing as clean energy technologies mature, with a focus on operational efficiency and predictable cash flows. The Inflation Reduction Act continues to drive transactions, particularly through tax credits for carbon capture and clean fuels, though regulatory uncertainty is prompting companies to seek broader geopolitical exposure.
Energy and power M&A activity focused on electron-based deals, with a slight decline in overall deal value to $42 billion in 3Q24 from $50 billion in 2Q24. Year-to-date deal value stands at $146 billion, driven by generation and distribution assets. Valuations for clean energy have compressed, Enverus Intelligence® Research (EIR) forecasts this trend to continue as technologies mature and are valued for established cashflows as opposed to bets on novel technologies. Interest in dispatchable gas-fired generation and alternative fuels is rising.
Highlights
- Stuck in the Queue – Suspensions Are Higher Than You Think – About 90% of renewable generation projects do not progress beyond the interconnection queue. EIR analyze at what stages these projects drop out and how long it takes successful ones to move through the study phases and begin construction.
- Power and ET M&A Review – Deal Activity Tempers as Policy Uncertainty Mounts – This energy transition quarterly M&A review utilizes EIR’s energy transition M&A platform, which has captured more than 8,000 deals across 100 countries spanning power (generation, distribution, storage and integrated assets) plus alternative fuels, CCUS, equipment manufacturing, EVs and mining of energy transition metals.
- 2025 Global Energy Outlook – Enverus Intelligence® Research’s 2025 outlook for North American oil and gas markets, the energy transition space and international E&P activity.
Enverus Intelligence® Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. EIR is registered with the U.S. Securities and Exchange Commission as a foreign investment adviser. See additional disclosures here.
