Portfolios owned by privately funded companies have become the primary acquisition targets for PE firms and PE-backed companies. Developers that held large development pipelines paired with high-quality operating assets in states such as Texas and California are now capitalizing on the growing market demand for projects that will benefit from IRA-provided incentives.
PE firms such as Brookfield and Blackstone seek to leverage hundreds of millions of dollars in institutional funds to acquire early- and late-stage projects, de-risk them, and divest at substantial market premiums.
Additionally, listed IPPs and utilities have been actively divesting in the US renewable market last year, with companies such as Duke Energy and AEP selling their unregulated business divisions to shift focus towards regulated assets. This transition is part of a strategy to sidestep intense competition in unregulated markets, which has risen sharply following the enactment of the IRA in 2022.
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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