The power sector in 2024 has seen a slew of mergers and acquisitions (M&A) driven by the global energy transition, with key players in the industry realigning their portfolios to focus on clean energy, divesting non-core assets and consolidating operations to achieve economies of scale.
The biggest deal in value this year, at $1.5bn, marked a sharp drop from last year’s $6bn, representing the overall decline the industry faced year-on-year. In 2024, the power sector registered a total global M&A value of $374.92bn, a 19% decline from 2023’s $456.98bn, as power businesses navigated highly uncertain market conditions.
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Here are the top ten power deals of 2024 based on value, with insights from Harminder Singh, director of power research and analysis (R&A) at Power Technology’s parent company GlobalData.
1. Otello BidCo acquires OX2 for $1.5bn
Otello considers that it is in a good position to become the owner of OX2, thanks to its extensive experience in investing in the renewable energy sector and in the energy transition in general.
– Harminder Singh, GlobalData’s director of power R&A
In May, Otello BidCo, backed by EQT Infrastructure VI fund, made a cash offer of $1.51bn (Skr16.53bn) to acquire Swedish renewable energy developer OX2. The deal, completed in October, aims to transform OX2 into a renewables developer and integrated asset owner.
“EQT plans to make further investments in OX2’s business while using its industry expertise to support its development,” Singh adds.
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By GlobalDataOX2 currently has a project portfolio spanning the full spectrum of renewable technologies including onshore and offshore wind, solar and energy storage. The company has cemented its footprint in 11 European markets as of 2023 and has expanded into Australia.
2. AES sells 47.3% stake in AES Brasil to Auren Energia for $630m
AES sees Auren as the right owner of these assets to achieve greater economies of scale and continue to serve the Brazilian market with clean and reliable energy.
– Harminder Singh, GlobalData’s director of power R&A
Also in May, the AES Corporation agreed to sell its 47.3% equity interest in AES Brasil to Brazilian hydropower company Auren Energia for $630m (3.87bn reais).
The transaction reflects a strategic exit by AES “to simplify its portfolio and focus on customers in the US and its rapidly growing utilities”, says Singh. Meanwhile, Auren, with more than 5.2GW of renewable energy assets, will further solidify its leadership in the Brazilian market.
Brazil’s renewable energy sector, especially in hydro and wind, has matured over the past decades. According to GlobalData, the South American country as of 2023 has 195.18GW of renewable capacity including hydro, wind, solar, geothermal and biopower, set to reach 428.16GW by 2035.
3. Vale acquires 45% stake in Aliança Energia for $542m
The acquisition of the stake in Alianca Energia is an important step towards creating an energy platform, potentially including other energy assets from Vale’s portfolio.
– Harminder Singh, GlobalData’s director of power R&A
In March, Brazilian mining giant Vale signed an agreement to acquire the 45% stake owned by Cemig Geração e Transmissão in electric utility Aliança Energia. Aliança’s portfolio includes hydroelectric plants and wind farms with a total capacity of 1.44GW, making this purchase essential for Vale’s long-term sustainability goals, while aligning with Brazil’s broader renewable energy strategies.
Singh explains: “Upon conclusion of this transaction, Vale will search for potential partners to this platform, keeping its commitment to decarbonise its operations using renewable sources at competitive costs.”
4. Elawan Energy buys Acciona Saltos De Agua for $311m
Elawan Energy aims to stabilise its future power production and build a long-term earnings base by adding this hydropower portfolio to its existing renewable energy sources.
– Harminder Singh, GlobalData’s director of power R&A
In July, Elawan Energy, a subsidiary of ORIX Corporation, acquired Acciona Saltos de Agua (ASA) for $311m (Y47.8bn), which includes a hydroelectric portfolio of 175MW in Spain. This sale complements Elawan’s growing renewable energy assets, reinforcing its position in Europe’s renewable energy market.
As hydropower remains a vital source of clean energy, Elawan’s acquisition will bolster its long-term capacity, helping drive Spain’s commitment to sustainable energy.
5. Kepco divests 17.44% stake in Kepco Engineering for $267m
The company had made this divestiture to secure funds to ease its liquidity crunch.
– Harminder Singh, GlobalData’s director of power R&A
Faced with mounting debt, Korea Electric Power (Kepco) sold a 17.44% stake in its engineering subsidiary to Mirae Asset Securities for $267m (383.98bn won) in January. This deal helps Kepco improve its balance sheet while maintaining a controlling stake in its subsidiary.
“The proceeds from the stake sale are expected to enable Kepco to sell new corporate bonds this year to lower its snowballing debt, topping 200trn won,” Singh says.
Mirae sees significant potential in Kepco Engineering’s capabilities in power plant development, particularly as South Korea continues to modernise its energy infrastructure.
6. Exus North America acquires NM Renewable Development for $234m
The transaction reflects Exus’ commitment to expanding its presence, adding to its existing portfolio of 1.8GW of solar assets under management in the US.
– Harminder Singh, GlobalData’s director of power R&A
In a pivotal deal in the US renewables sector, Exus North America acquired New Mexico (NM) Renewable Development for $234m in February. NM Renewable Development’s portfolio of solar projects, totalling 625MW, will contribute to Exus’ growing presence in the solar market and help meet the state’s goal of achieving 100% clean energy by 2040.
Exus’s acquisition comes at a critical time as solar energy adoption accelerates in the south-western US.
7. J-Power acquires remaining stake in Genex Power for $229m
Genex has a diverse portfolio that spans wind, solar, battery energy storage and pumped hydro energy storage. The acquisition gives J-Power a footprint in the Australian market.
– Harminder Singh, GlobalData’s director of power R&A
Japanese utility Electric Power Development (J-Power) finalised its acquisition of the remaining shares in Australia’s Genex Power for $229m (Y35.21bn) in July. Genex, which operates pumped storage hydro, solar and wind projects, will play a crucial role in J-Power’s renewable energy strategy outside Japan.
The deal builds on the existing collaborations between J-Power and Genex in Australia. The two companies have been jointly developing the 2GW solar-plus-storage Bulli Creek project and the 200MW Kidston Stage-3 Wind Project in Queensland.
8. Adani Transmission acquires Essar Transco for $227.5m
The acquisition is in line with Adani Energy Solutions’ value-added growth strategy through organic as well as inorganic growth opportunities. It will also fortify its position of being the largest private sector transmission and distribution company in India.
– Harminder Singh, GlobalData’s director of power R&A
Adani Transmission, India’s largest private transmission company, acquired Essar Transco for $227.5m (Rs19.31bn) in May.
The transaction includes a 673km transmission line that enhances Adani’s presence in India’s interstate power grid. With this acquisition, Adani’s cumulative network will reach 21,182km, out of which 18,109km is operational and 3,073km is under various stages of execution.
“Further, with this scale of operations, Adani will derive synergies in terms of O&M (operations and maintenance) cost optimisation and shared resources,” Singh adds.
This acquisition is aligned with Adani’s broader strategy to build out its smart energy grid capabilities, essential for integrating renewable energy sources into the grid.
9. Assystem sells 5% stake in Framatome to EDF for $223m
The sale of its stake in Framatome strengthens the independence of the Assystem Group, which is heavily involved in the development of civil nuclear projects using a variety of technologies in many countries.
– Harminder Singh, GlobalData’s director of power R&A
In January, French nuclear engineering company Assystem divested its 5% stake in Framatome to EDF for $223m (€212.56m).
This sale marks the end of Assystem’s participation in France’s nuclear reconfiguration, although “the company continues to partner its French customers, particularly EDF, for the development of future programmes and for the performance of existing nuclear power plants in France”, according to Singh.
The deal will allow EDF to consolidate its control over key nuclear assets.
10. China Southern Power Grid acquires 35% in ACWA Power projects for $159m
The sale is part of ACWA Power’s capital recycling strategy in addition to the company’s business model that encourages cooperation with strong and reputable equity partners.
– Harminder Singh, GlobalData’s director of power R&A
In July, state-owned China Southern Power Grid International acquired a 35% stake in ACWA Power’s Uzbekistan wind units for $159m (1.16bn yuan), highlighting China’s interest in expanding its influence in the broader Asian renewable market.
The two units – ACWA Power Bash Wind Project Holding and ACWA Power Uzbekistan Wind Project Holding – have a 100% stake in the 500MW Bash wind farm and 500MW Dzhankeldy wind farm, respectively. The two projects, with a combined capacity of 1GW and investment costs exceeding $1.3bn, “will be the largest renewable energy projects in Central Asia”, Singh says.
Uzbekistan is ACWA Power’s second-largest market in terms of investment cost.
“The two companies believe that by leveraging synergies, they can strengthen their strategic partnership and work towards developing a series of benchmark projects and contribute to the implementation of the Uzbekistan-2030 strategy,” Singh explains.
China Southern Power Grid’s purchase, part of the Belt and Road Initiative, symbolises the Asian country’s strategic investment in the global energy transition, particularly in emerging markets.
