Energy transition investment and M&A market show signs of resilience and growth 

After a period of turbulence across the global investment landscape, Scotland’s M&A market is showing signs of renewed vigour. While macroeconomic and geopolitical factors have caused fluctuations in deal flow across the UK and internationally, the Scottish market is demonstrating resilience and adaptability.

Dealmaking across the energy transition is accelerating, with investors increasingly pursuing a dual-track strategy that blends renewables, enabling infrastructure and selective conventional assets.

According to ‘Evolution not revolution: Investing in the energy transition’, Brodies LLP’s latest report, global M&A and investment activity in the sector remains both broad and resilient, underpinned by strong pipelines and growing confidence in the asset class.

The data points to a highly active market. Over the past 24 months, 88 per cent of surveyed investors completed at least one majority-stake transaction, while three quarters progressed greenfield developments. Minority-stake deals are also a key feature, particularly for financial sponsors seeking platform-building opportunities and flexible deployment models.

This momentum is set to continue with 82 per cent of respondents expecting to increase global investment over the next two years, with general counsel anticipating a parallel rise in deal values.

For corporate buyers and sponsors, the opportunity lies in the breadth of the transition. Operational renewable assets continue to attract capital for their stable, inflation-linked returns, while greenfield projects – although more complex – offer long-term growth and exit potential through partial sell-downs or refinancing.

Battery storage, in particular, is emerging as a focal point for M&A and development, reflecting its central role in grid stability and project economics. Notably, conventional energy remains part of the investment mix. Around 37 per cent of respondents continue to hold exposure to this asset class, particularly in gas infrastructure.

This underscores a broader trend highlighted by the report: the most successful strategies are not a choice between renewables or conventionals; rather, they are integrated, combining assets across the energy spectrum.

Internationally, capital is flowing towards markets with scale and policy clarity, including Iberia and Asia-Pacific, while geopolitical risk continues to influence cross-border M&A execution.

Overall, the report paints a picture of a mature, opportunity-rich market where disciplined dealmaking, portfolio diversification and strategic alignment are key to unlocking value in the next phase of the energy transition.