2025 Mid-Year Renewable Energy and Sustainability Sector M&A Overview

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Australia’s renewable energy and sustainability sector continues to be a standout in the national mergers and acquisitions (M&A) landscape, demonstrating remarkable resilience and growth even amid economic headwinds. The sector’s strategic importance is underscored by a robust pipeline of deals, with total transaction value exceeding $10 billion across major transactions between $2 million and $1 billion from 2020 to 2025.

Market Fundamentals and Growth Drivers

The renewable energy sector is a cornerstone of Australia’s energy transition strategy, now accounting for over 35% of total electricity generation—a figure forecast to surge to 69% by 2030. This growth is powered by strong government policy, ambitious emissions targets, and increasing corporate sustainability commitments. As a result, investment in solar, wind, battery storage, and pumped hydro projects continues to accelerate, with $19.6 billion invested in 2023 alone.

Consolidation and Competitive Dynamics

The industry remains highly fragmented, creating significant opportunities for consolidation. Recent years have seen landmark transactions by major Australian players such as Squadron Energy, Genex Power, and Edify Energy, as well as strong international interest from firms like Iberdrola and Shell Energy. These deals have reshaped the competitive landscape, with integrated renewable energy platforms and battery storage systems commanding premium valuations.

Key Trends in M&A Activity

• Platform Acquisitions: Strategic investors are building scale and diversifying technology portfolios through platform acquisitions.

• Domestic and International Expansion: Both Australian and global buyers are active, seeking to expand project pipelines and geographic reach.

• Technology and Capability Focus: Acquisitions are increasingly targeting businesses with specialised capabilities and operational excellence, especially in high-growth areas like battery storage.

• Strong Mid-Market Activity: The $2M–$1B segment remains vibrant, with EBITDA multiples ranging from 8x to 15x depending on scale and technology.

Landmark Transactions

Notable deals include Squadron Energy’s $4 billion acquisition of CWP Renewables, the PowAR Consortium’s $2.1 billion purchase of Tilt Renewables’ Australian assets, and Iberdrola’s $893 million acquisition of Infigen Energy. These transactions highlight the sector’s maturity and the premium placed on established assets and development pipelines.

The Road Ahead

With supportive government policy, ongoing cost reductions in renewable technologies, and growing demand for clean energy, the outlook for M&A in Australia’s renewable energy and sustainability sector remains exceptionally strong. Businesses that can demonstrate operational excellence, specialised expertise, and strong customer relationships are best positioned to capitalise in this evolving market.

Read the Report

Click here to read the full report for a comprehensive analysis of recent transactions, market trends, and expert insights shaping the future of renewable energy and sustainability M&A in Australia.

For a confidential, obligation-free discussion about how these insights could apply to your business, or to explore your options, contact the Morgan Business Sales team today.

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