Energy Transition M&A Report 2026

• Deal volume falls but investment value surges – Global energy transition M&A volumes declined by around 15% in 2025, while total deal value increased by over 20% to USD599 billion. This indicates investors are being more selective, prioritizing scale, asset quality and execution certainty. The increase in deal value was driven by consolidation among utilities, oil and gas majors, and infrastructure investors seeking long‑term exposure to energy transition assets. Smaller and more marginal transactions were more likely to be deferred or repriced.

Energy transition M&A deal value and volume 2024-2025

• Cross‑border investment is focusing on scale and security – While cross‑border deal volumes were broadly stable, deal values rose significantly, reflecting investor focus on supply‑chain security, access to critical technologies, and jurisdictions with clearer regulatory frameworks. Domestic deal activity declined by over 20%.

Domestic and cross-border M&A combined

• The energy transition value chain is expanding – Deal value jumped by 38% to USD271 billion. Investment is moving towards infrastructure, services and storage – critical areas for system resilience and long-term decarbonization. Renewables M&A deal volumes fell and e‑mobility activity also declined, with deal value dropping by nearly 40%.

• Energy storage emerged as the strongest sub-sector – Volumes increased by 17%. And 90% of our respondents ranked energy storage a top investment priority, reflecting its transition from a supporting technology to a core system asset.

2024-2025 (value – USD billion)

• Deal volumes drop across regions – China was the only region to record an increase in deal volume. Capital largely remained within regions, with a continued transatlantic flow between Europe and the US, reflecting the strategic importance of scale assets and established regulatory regimes.

• Strategic partnerships rise amid market complexity – Investors increasingly turned to strategic partnerships, joint ventures, and selective diversification to navigate growing policy divergence, tariff uncertainty, and tighter financing conditions.

• What this means for market participants – The energy transition M&A market is entering a more disciplined phase. Capital is available, but increasingly directed toward transactions that offer scale, resilience and long‑term fundamentals. Investors are focusing on fewer, larger, higher‑quality assets and building strategic alliances to manage policy divergence, tariff risks, and financing constraints.