In a year in which both global and U.S. M&A activity in aggregate reached record levels, renewable energy M&A contributed to the mix in terms of high deal volume and landmark transactions. Robust demand in the sector was supported by persistently low interest rates, Environmental, Social and Governance (ESG) considerations, and aggressive renewable energy and decarbonization targets. The market for renewable energy assets, portfolios and platforms remained hot, despite industry headwinds that included disruptions to supply chains, trade developments that negatively impacted the sector and policy uncertainty.

The briefing “U.S. Renewable Energy M&A: Review of 2021 and Outlook for 2022 has been published by Reuters Events in collaboration with FTI Consulting. The authors expect deal flow to remain strong as sector incumbents consolidate their positions while new participants seek viable entry points. Realizing acceptable risk-adjusted returns will become all the more challenging given the hypercompetitive market, tightening (though still accommodative) monetary policy, the supply chain overhang from the pandemic and the worsening trade situation with China. As investors vet opportunities, they will consider new business models, sub-sectors and emerging technologies, and approaches that go beyond traditional norms as they seek to optimize returns.

Access the briefing here