Introduction
The urgency of the climate crisis has propelled renewable energy to the forefront of global investment strategies. London, a major financial centre, is witnessing a surge in M&A activity within the renewable energy sector. Fuelled by government initiatives promoting clean energy transition, investor confidence in the sector's long-term growth, and technological advancements, these deals signal a significant shift towards a greener future. Let's explore some of the most noteworthy renewable energy M&A deals that have closed in London over the past three months (as of October 27, 2023):
1. Ørsted Divests London Array Stake to Consortium for £922 Million: In December 2023, Ørsted, a leading Danish renewable energy company, divested its 25% stake in the London Array, one of the world's largest offshore wind farms located off the coast of Kent, England. A consortium comprising Schroders, RWE, CDPQ (Caisse de dépôt et placement du Québec), and Masdar acquired the stake for £922 million. This deal highlights the growing investor appetite for established renewable energy assets in the UK.
2. Shell Acquires Ubitricity for Undisclosed Amount: In a strategic move to bolster its electric vehicle (EV) charging infrastructure portfolio, Shell acquired Ubitricity, the UK's leading public electric vehicle charging network operator, in November 2023. The acquisition amount remains undisclosed, but it signifies Shell's commitment to expanding its clean energy offerings and catering to the burgeoning EV market in London.
3. Green Investment Group Backs Offshore Wind Developer for £150 Million: The Green Investment Group (GIG), a leading clean energy investor backed by Macquarie Group, announced a £150 million investment in November 2023 in BlueFloat Energy UK, a developer of offshore wind projects. This investment will support BlueFloat's development of the Salamander offshore wind farm project in the Celtic Sea, further contributing to the UK's offshore wind capacity.
Conclusion
The recent surge in renewable energy M&A activity in London underscores the city's pivotal role in the global energy transition. With a robust financial infrastructure and a growing pool of investors seeking sustainable solutions, London is poised to remain a key hub for renewable energy deals in the years to come. These deals not only accelerate the UK's journey towards net-zero but also pave the way for a greener future powered by clean energy sources.
