In 2023, PE firms and PE-backed companies accounted for over 41% of all the transactions in Europe’s renewable generation space. Interestingly, the group has announced over 50% more deals than deals made in the country by listed utilities and independent power producers (IPPs). Large asset portfolios and platforms across Spain, Italy, and the UK emerged as the primary acquisition targets for PE capital. The companies aim to take advantage of faster permitting processes and the ability to lock-in long term PPAs at elevated power prices to generate value and potentially exit from these platforms in the future at a double digit return on investments.
In line with this ongoing trend, Sandbrook Capital, PSP Investments and IMCO acquired Germany-based onshore wind developer NeXtWind. The PE firms have committed investments of up to $750mn in the platform to progress its nearterm development pipeline.
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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