Energy transition M&A showed resilience in 2025
Deal volume fell 15 percent but value rose 20 percent to USD 599 billion. Capital shifted toward larger, higher-quality assets.
The energy transition M&A market showed resilience in 2025. Although deal volume fell 15% to 4,409 transactions, total deal value rose ~20% to USD 599 billion. Capital shifted toward larger, higher-quality assets, while cross-border deal value surged nearly 50% to USD 350 billion.
The energy transition value chain led the way, with deal value up 38% to USD 271 billion, fueled by energy efficiency, grid services, and circular economy solutions. Energy storage continued its strong growth, rising 30% to USD 30 billion, with 90% of respondents ranking it as the top category and viewing it as core infrastructure.
Renewable generation saw volume drop 27% but value reach USD 202 billion thanks to large solar and wind portfolio deals. Natural resources supply chain and e-mobility both contracted in activity.
In the Americas and Europe, deal values grew strongly to USD 331 billion and USD 154 billion respectively. Survey respondents cited financials and valuation as the main driver (45%), followed by core business alignment (31%), while 86% noted persistent challenges including regulatory and grid constraints.
2025 marked a year of disciplined investment. Looking into 2026, selectivity, scale, and strategic assets, especially those supporting electrification and flexibility, are expected to remain in focus.
Source: inform-new.dlapiper.com
Originally published on LinkedIn, 4 April 2026.
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