Brazilian Leadership In Clean Energy Generation Is Evident, Mainly 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 increase of 58% in M&A involving renewable energy companies in Brazil in 2022. This number rose from 31 transactions in 2021 to 49 in 2022, echoing a favorable year for the energy sector in general, which saw an 81% growth in the same period.
Increase In The Participation Of The Renewables Sector In The Brazilian Energy Matrix
This growth in the renewables sector aligns with a general trend of increasing participation of renewable energies in the Brazilian energy matrix. In just the first five months of 2023, 16 of the 25 total operations in the energy area involved renewable energy companies.
“We are in a favorable moment for renewable energy negotiations. With mega deals, startups, and projects at 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.
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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 clean energy generation is not just 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.”
Positive Impact Of The Increase In 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), hydropower is responsible for almost 50% of the energy generated in the country, followed by solar photovoltaic generation at 13.1%, and wind power at 11.5%. Generation from biomass or biogas represents 7.6% of the total.

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