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58% rise in Mergers and Acquisitions boosts Brazil's Renewable Energy Sector

Written by Corporate
Published 05/06/2023 às 01:40

The Brazilian role in the generation of clean energy is evident, especially on World Environment Day

According to a recent study by Redirection International, a consultancy specializing in mergers and acquisitions (M&A), there was an impressive 58% increase in M&A involving renewable energy companies in Brazil in 2022.

The increase in the share of the renewable sector in the Brazilian energy matrix

This growth in the renewables sector is in line with a general trend of increasing the share of renewable energies in the Brazilian energy matrix. In the first five months of 2023 alone, 16 of the 25 total operations in the energy area involved renewable energy.

“We are in a propitious moment for renewable energy negotiations. With mega deals, startups, and projects in various stages of development and operation in Brazil, we attract both large international groups wanting to sell local assets and national groups adjusting their portfolios”, comments João Caetano Magalhães, director of Redirection International.

Outlook for 2023 and the role of clean energy in the future

For 2023, the expectation is that M&A activities will continue to rise in the renewable energy market. One of the highlighted negotiations is Eneva's search for a strategic or financial partner for its renewable energy asset platform.

Magalhães emphasizes that the generation of clean energy is not only a global trend, but also a vital component for the development of a green economy. “Brazil is already a global leader in the generation of clean energy and the market is expanding, with M&A activities following this trend.”

The positive impact of increased negotiations involving renewable energy companies

This growth in M&A reflects the strong performance of the renewable energy sector as a whole, which currently accounts for more than half of Brazil's energy matrix. According to data from the National Electric Energy Agency (Aneel) and the Brazilian Association of Photovoltaic Solar Energy (Absolar), hydroelectric generation is responsible for almost 50% of the energy generated in the country, followed by photovoltaic solar generation with 13,1%, and wind with 11,5%. Generation from biomass or biogas represents 7,6% of the total.

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CPG Corporate Reports is intended for news about events, projects and announcements from companies in Brazil and the world!

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