Analysis of the Week: Acquisitions of GW-scale renewables platforms soar, with 13 deals valued at more than 10X LTM EBITDA, since 2023

published on 12 February 2024

In our analysis of corporate transactions involving solar, wind, and battery developers globally since 2022, Enerdatics has observed a significant increase in the number of transactions valued over 10X last twelve months (LTM) EBITDA. Specifically, the number of such transactions has increased significantly during the last 2 years, from 7 deals in 2022 to 13 since 2023. This trend can be attributed to the strategic actions of PE firms like Brookfield and KKR, as well as cash-rich players such as Statkraft and Equinor. These companies are acquiring platforms that have substantial development pipelines to leverage economies of scale and lower their per-unit procurement costs. Additionally, intense competition for these platforms has resulted in attractive EV/EBITDA valuations, as sellers can attract bids from multiple interested parties. Overall, these transactions are driving growth and providing opportunities for both buyers and sellers in the renewable energy sector.

The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.

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