Mergers and acquisitions in the renewable sector total R$ 50 billion in agreements in Brazil

CELA study mapped more than 50 GW of projects and companies transacted between 2014 and 2023
The report provides aggregated analysis of more than 190 transactions of companies and projects related to solar wind energy. Photo: Freepik

agreements M&A (mergers and acquisitions) in the sector of renewable energy amounted to approximately R$ 50 billion accumulated in Brazil over the last nine years.

The data was released in the consultancy's unprecedented study CELA (Clean Energy Latin America), specialized in financial advisory and strategic consultancy for companies and investors in the renewable energy sector in Brazil and around the world.

The information appears in the “Panorama of M&As in the renewable energy sector”, carried out independently by CELA based on research and contributions from players in the solar photovoltaic and wind markets in Brazil. According to the report, more than 50 GW of projects and companies transacted between 2014 and 2023 were mapped.

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The study brings an aggregated analysis by CELA experts of more than 190 transactions of companies and projects related to solar photovoltaic energy and wind energy, including large centralized power plants (large scale) and medium GD ventures (distributed generation) – up to 5 MW).

According to the report, between 2014 and 2023, there was an increase of more than 400% in the number of transactions mapped annually and a growth of more than 8 times in the total capacity (GW) transacted.

In the last 24 months alone, between 2022 and 2023, more than 60 transactions were mapped, totaling approximately R$ 25 billion and a transaction capacity of 30 GW.

Source: CELA
Source: CELA
Source: CELA

“Our main objective is to guide strategic business analyses, providing information for assertive decision-making in the renewable energy market,” he explained. Camila Ramos, CEO of CELA.

“Analysis of the total transactions carried out annually by energy source and regulatory environment clearly shows that the last nine years have seen an increasing presence of M&As. The more intense presence of centralized generation from 2014 to 2019 stands out, which is partly due to government initiatives aimed at popularizing renewable energy in the country, such as renewable energy auctions”, he added.

According to the analysis of CELA's CEO, from 2020 to 2023, the volume of transactions intensified, for numerous reasons, with emphasis on the growth of agreements in the area of distributed generation (GD), although it is characterized by smaller projects.

“In any case, during this period, there was recognition of GD’s potential for growth and scalability, especially due to the more advantageous rules for such projects until the end of 2023”, he highlighted.

In the case of financial volume transacted, centralized projects, especially wind power, appear more expressively, given the size of the projects and the power installed in large-scale plants.

“Thus, total valuations are directly proportional to the total capacity transacted and, consequently, more significant for centralized generation projects”, concluded Camila.

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Ericka Araújo
Head of journalism at Canal Solar. Presenter of Papo Solar. Since 2020, it has been following the photovoltaic market. He has experience in podcast production, interview programs and writing journalistic articles. In 2019, he received the 2019 Tropical Journalist Award from SBMT and the FEAC Journalism Award.

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