U.S. Renewables M&A: 2019 Review and Outlook for 2020

Last year was another banner year for U.S. renewable energy mergers & acquisitions (M&A) in terms of high-profile deals and transaction volume. While moves toward the expiry and step-down of tax credits are on the horizon, we expect 2020 to be another active year for new build, legacy asset and platform M&A. Barring a macroeconomic shock, there are just too many projects in the pipeline and too much capital in the system for us to see a major pullback in deal activity.

We expect a continued focus on traditional clean energy technologies, complemented by meaningful growth in distributed solar and the realization of energy storage and hybrid projects. The potential uplift from offshore wind is not a question of “if” but “when.”

Additionally, with deep-pocketed capital providers continuing to be active acquirers, the “wall of capital” remains firmly in place. With sponsors and developers remaining acquisitive, a flow of deals across the project life-cycle will permeate 2020.