Blog — 7 April, 2026
US Power and Renewables M&A: What Elevated Deal Activity Means for Asset Valuation
Executive summary
M&A activity across the global power and renewables sector reached its highest level since 2007 in 2025 and has remained elevated into 2026, with dealmaking heavily concentrated in the United States. According to the S&P Global Energy’s Global Power and Renewables M&A Review, North America has accounted for nearly 70% of transaction value since the start of 2025, driven primarily by acquisitions of US gas generation and large-scale renewable platforms.
This concentration of capital has sharpened the focus on asset-level valuation: buyers are targeting operating assets with predictable cash flows, exposure to rising power demand, and strategic positioning in constrained power markets. As transaction sizes grow and valuation dispersion widens, robust, scenario-based power plant valuation has become central to M&A decision-making.
Key Takeaways
- US-focused M&A has dominated global power and renewables deal value since 2025, reflecting expectations for rising domestic power demand.
- Independent power producer (IPP) transactions—particularly US gas generation—drove record segment-level deal values in 2025.
- Gas generation valuations in the US have increased materially since 2024, with transaction-specific outcomes varying by technology and market location.
- Global renewable M&A volumes declined in 2025, but transaction values rebounded sharply in early 2026, led by large US-focused platform deals.
- These trends reinforce the need for asset-level, market-specific valuation tools that can stress-test assumptions across price, demand, and policy scenarios.
US Power Demand Is Reshaping Deal Priorities
S&P Global Energy’s Global Power and Renewables M&A Review highlights that North America accounted for over two-thirds of global power and renewables transaction value in 2025, with activity centered on the US. This surge reflects expectations for sustained growth in electricity demand, driven in large part by data center expansion and electrification trends.
For buyers, these demand dynamics have shifted M&A strategies toward assets that can deliver firm, around-the-clock capacity. This has favored operating gas-fired generation, particularly in constrained markets such as PJM and ERCOT, where new-build development faces long lead times and rising costs.
Data compiled March 23, 2026.
Transaction value is defined as the total consideration paid to the sellers for equity, plus the value of assumed current liabilities net of current assets, and is only included for transactions with a disclosed value. The transaction list includes mergers and acquisitions (excluding spinoffs and split-offs) within the electric utility, independent power producer, renewable generation and power trading segments. The transaction year is based on the announcement date. Historical data is subject to revision. Data for 2026 includes transactions announced through March 20, 2026.
Sources: S&P Global Energy; S&P Global Market Intelligence.
Gas Generation M&A and Rising Valuation Benchmarks
IPP deal values surged to $69 billion in 2025—the highest level since 2007—with 87% of that value concentrated in North America. The report attributes this to a wave of large-scale US gas transactions aimed at expanding baseload and flexible capacity.
Valuation data within the report shows that average announced valuations for select US gas generation transactions since the start of 2025 exceeded $1,100 per kW, more than double the 2020–2024 average. However, transaction outcomes varied significantly depending on asset age, efficiency, fuel access, and regional market fundamentals.
This dispersion underscores why buyers increasingly rely on granular valuation frameworks that incorporate nodal pricing, dispatch economics, and forward-looking demand scenarios.
Data compiled March 23, 2026.
Transaction value is defined as the total consideration paid to the sellers for equity, plus the value of assumed current liabilities net of current assets, and is only included for transactions with a disclosed value. The transaction year is based on the announcement date. Historical data is subject to revision. Data for 2026 includes transactions announced through March 20, 2026.
Sources: S&P Global Energy; S&P Global Market Intelligence.
Renewables M&A: Fewer Deals, Larger Platforms
While global renewable M&A volumes declined in 2025, transaction values in early 2026 have already surpassed full-year 2025 levels, driven by large US-centric transactions such as the proposed acquisition of The AES Corp. The report notes that improving sentiment, rising power demand, and faster time-to-market compared with conventional generation have supported higher valuations for wind and solar assets.
Buyers are increasingly targeting scale platforms with contracted revenue and development pipelines, rather than single-asset acquisitions. This shift places greater emphasis on portfolio-level valuation and scenario analysis, particularly around power prices, congestion, and policy risk.
Linking M&A Strategy to Power Evaluator
As deal sizes increase and underwriting assumptions face greater scrutiny, valuation tools must bridge market fundamentals with asset-level economics. Power Evaluator is designed to support this need by enabling customizable valuations of existing and planned power plant assets, simulation of acquisitions and divestments, and stress-testing under multiple market, policy, and climate scenarios.
For M&A practitioners assessing US gas or renewable assets, this type of integrated valuation approach aligns directly with the trends highlighted in the M&A review: larger transactions, higher valuations, and a greater premium on understanding location-specific risk and opportunity.
FAQ
Why is US power and renewables M&A attracting so much capital?
The report shows that expectations for rising US power demand—particularly from data centers—combined with the relative stability of operating assets, have driven investor interest in US-focused power and renewables transactions.
Why are gas generation assets central to recent M&A activity?
Gas-fired plants provide firm and flexible capacity that complements intermittent renewables. Buyers are also responding to long lead times and higher costs for new-build gas development by acquiring operating assets.
How are valuations changing across power M&A deals?
US gas generation valuations have increased materially since 2024, while renewable valuations have trended higher over the past two years amid improving sentiment and demand growth expectations. Transaction-specific outcomes vary by technology and market.
How can Power Evaluator support M&A analysis?
Power Evaluator enables users to conduct asset-level valuations, simulate acquisitions and divestments, and assess market and physical risks across multiple scenarios—capabilities that align with the increasingly complex valuation requirements of US power and renewables M&A.
S&P Global Energy produces content for distribution by S&P Global Market Intelligence on S&P Capital IQ Pro. Disclaimer: This content may be AI-assisted and is composed, reviewed, edited, and approved by S&P Global.
