Renewables development is becoming a large-cap game

GPs with deep pockets are capitalising on renewables developers’ distress – and securing continued development. Read more in this month's Energy Transition newsletter.

Tips and feedback to Anne-Louise Stranne Petersen or email [email protected].

After a year of muted dealmaking in 2023, last month was a showcase month for pent-up capital finding a home, particularly in the energy transition sector. At the outset of the month was the $6.2 billion buy of US utility Allete by Global Infrastructure Partners and CPP Investments. Then came EQT’s SKr16.4 billion ($1.5 billion; €1.4 billion) agreement to buy Swedish developer OX2 , while last week saw ECP agree a $2.6 billion deal for Atlantica Sustainable Infrastructure and Brookfield Asset Management added to GIP and CPP’s mega-deal with the move to buy French developer Neoen, providing the company with a valuation of €6.1 billion.

The deals in this quartet were all take-privates and will, the buyers might stress, provide a capital security to the energy transition that the public markets can’t offer, a theme we explored a few weeks ago.

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ICYMI

Here’s a wrap-up of energy transition infrastructure developments in May that caught our eye, but didn’t make the cut for coverage:

• Nuveen Infrastructure (formerly known as Glennmont Partners) shares the German 253MW Gode Wind 3 offshore wind farm with Orsted, and this project now has its first 11MW turbines installed - the largest yet in German waters. The UK already has 13MW turbines spinning at the 1.2GW Doggerbank A, in which HiTechVision has a ten percent share.

• Keeping to the theme of offshore wind, a pilot floating wind turbine, the Stiesdal TetraSpar Demonstrator, reportedly averaged a capacity factor of 63 percent so far in 2024. This with a mere 3.6MW turbine. The spar foundation can reportedly be deployed from a shallow-water port, which would be rather useful.

Nordic energy transition is poised for growth

The Nordic region is in a great position to work towards complete decarbonisation, but the focus now must be on scaling up local infrastructure, says Infranode ’s investment director and head of sustainability Johan Tiselius. Read more

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Brookfield’s €6.1bn Neoen deal to grow French and Australian exposure

UK Infrastructure Bank: 'We're the catalyst'

It is energy transition plus for Octopus’s GP arm

The key trends shaping the energy transition

Head over to Infrastructure Investor's Energy Transition hub page for all our coverage