The number of merger and acquisition (M&A) deals increased considerably in the wind energy sector globally. On May 9, 2022, BP plc, an oil and gas company, planned the acquisition of a 30% stake in the Asian Renewable Energy Hub (AREH) project, from CWP Renewables, Intercontinental Energy, Vestas, and Macquarie Group for $36 billion. The project has onshore wind power capacity of 16 GW and solar power capacity of 10 GW. The potential investment aligned perfectly with BP’s goal to develop 50 GW of renewable capacity by 2030.
Increasing Competitiveness in Wind Energy
Wind energy is one of the fastest-growing energy generation technologies among renewable energy technologies. According to data released by International Renewable Energy Agency (IRENA), the use of wind energy increased worldwide in the last two decades; wind-generation capacity onshore and offshore increased from 7.5 GW in 1997 to 824 GW in 2021. Factors such as advancements in technology and reduction in costs continue to make wind energy more competitive than energy from other renewable sources.
According to GlobalData’s deals database, wind energy has always led M&A deals in terms of value compared to energy from other renewable sources. The total value of M&A transactions globally increased from $106 billion in 2020 to $210 billion in 2021, which registered nearly 100% growth over that in the previous year.
Recent Deals in Wind Energy
Engie Brasil to acquire Serra do Assurua Wind Project from PEC Energia
On May 5, 2022, the power generation company, Engie Brasil, agreed to acquire the Serra do Assurua wind project in Bahia state from PEC Energia for a value of $50 million, which has a generation capacity of 882 MW. With this acquisition, the size of Engie’s renewable energy projects in Brazil will increase to 3 GW.
SSE Renewables to acquire wind project portfolio from Siemens Gamesa
On April 19, 2022, SSE Renewables, a renewable energy company, signed an agreement with Siemens Gamesa Renewable Energy (SGRE) to purchase its portfolio of onshore wind projects for $610 million. The projects can generate 3.9 GW of electricity. The acquisition will help SSE expand its renewable energy business in Southern Europe.
MEAG to acquire a 75% stake in a Swedish wind farm from Eolus Vind and Hydro REIN
On April 15, 2022, an asset management company, MUNICH ERGO Asset Management (MEAG), entered into an agreement with renewable energy solution providers Eolus Vind and Hydro REIN to acquire a 75% stake in the Stor-Skälsjön wind power project for $28.5 million, which has a generation capacity of 260 MW. This acquisition will help MEAG to expand its portfolio in renewable energy.
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