EU BESS M&A: UK Witness ~50% Y/Y Decline in Deal Activity in 2024 as Investors Shift Focus to Emerging Markets

published on 08 December 2024

M&A Activity Slows in the UK Amid Declining Investment Returns in Southern England: Revenue saturation from the rapid expansion of storage capacity, coupled with elevated capital costs, has significantly reduced the appeal of acquiring BESS assets in this area. As a result, investors are now adopting a more selective approach, with Enerdatics data showing that recent activity has been concentrated around northern England, Scotland, and Wales, where revenue potential continues to remain robust.

M&A Activity Surges in Emerging Markets as Investors Rush to Enter the Next ‘UK’: Enerdatics data highlights that activity in markets like Germany, Sweden, and Finland have been on the rise since late-2023. These markets have lower competition among developers, while offering higher revenue through ancillary services and energy arbitrage. Looking forward, markets like Poland and Ireland are also poised to join them, driven by significant power price fluctuations and accelerated renewables buildout.

Stay updated on the latest in renewable energy investments with Enerdatics. Click here to explore our Renewable Energy M&AFinancePPA, and Projects databases.

Read more