There have been a variety of notable mergers and acquisitions (M&A) across the power sector in 2023. Here are the top five M&A deals this year, based on value, insights from GlobalData analysts and what made headlines on Power Technology.
Gas divestment: Iberdrola to sell $6bn Mexican gas power portfolio
In April, Iberdrola Mexico reached a memorandum of understanding (MoU) with Mexican Infrastructure Partners (MIP) to sell power plants totalling 8.54GW for $6bn.
That 8.54GW is almost entirely made up of combined cycle gas power plants, with just 100MW comprising wind capacity. The transaction is part of Iberdrola’s commitment to becoming the main private generator of renewable energy in the country.
New transmission line: Queensland Government to build $3.9bn power transmission project
In March, the Government of Queensland, Australia, announced that it would own and build the CopperString 2.0 power transmission line project.
The 1,100km transmission line will connect wind and solar assets with critical mineral mining and processing facilities that are intended to make batteries and renewables in North Queensland. It will have 6GW of clean energy capacity and require a A$5bn ($3.29bn) investment to develop.
CopperString 2.0 is planned to link Mount Isa, Cloncurry and the North West Minerals Province to the National Electricity Grid near Townsville, unlocking Australia’s largest renewable energy zone.
During the six-year construction period, the project is expected to create 800 direct jobs, as well as other jobs in the critical minerals mining, manufacturing and renewable segments.
Country exit: Enel reaches $2.9bn deal for Peruvian assets sale to China’s CSGI
In April, Italian energy giant Enel, through its Peruvian subsidiary Enel Perú, struck a $2.9bn deal with China Southern Power Grid International (CSGI), to offload its distribution, supply and energy services assets.
This deal saw Enel Perú selling its 83.15% stake in the power distribution and supply company Enel Distribución Perú and 100% stake in advanced energy services provider Enel X Perú.
The deal aligned with Enel’s 2023-25 strategic plan announced a month earlier, which outlined the company’s intentions to focus on Italy, Spain, US, Brazil, Chile and Colombia going forward. The sale was part of Enel’s plan to exit geographies and businesses that do not align with its strategy.
Energy transition: Asterion enters $2.8bn deal to acquire German utility STEAG
In August, Asterion Industrial Partners, a Spanish infrastructure investment company, acquired energy utility STEAG from consortium Kommunale Beteiligungsgesellschaft (KSBG), valuing the business at $2.8bn (€2.6bn). The deal aimed to develop the company as a whole and accelerate its transition into a sustainable energy supplier.
STEAG comprises two businesses, STEAG Power and Iqony. STEAG Power operates hard-coal-fired power plants at six locations, with a 5% share of total electricity generation in Germany. Iqony is focused on renewable energies and other climate-neutral technologies. Its portfolio includes solar, wind, geothermal, hydrogen and storage solutions, engineering services and gas-fired power plants.
Nuclear: Constellation to acquire NRG’s stake in 2.6GW Texas nuclear power plant
In June, Constellation Energy agreed to acquire NRG Energy’s 44% stake in South Texas Project Electric Generating Station, a 2.6GW nuclear plant in Texas, Houston, US, for $1.75bn.
Constellation plans to use a combination of cash and debt to finance the transaction.
The 44% stake corresponds to 1.1GW of output from the power plant. The remaining ownership is held by Austin Energy and CPS Energy.
