M&A INDUSTRY UPDATE | Energy

Embracing the future of renewable energy

As the energy sector navigates a transformative period, the convergence of production, distribution, and demand is unveiling unprecedented opportunities for investors and innovators. Oaklins' latest report, "Energy Transition Norway 2024," highlights critical insights and trends shaping the future of the Norwegian renewable energy industry.

Norway is on the brink of a new energy era. With production and distribution failing to meet the rising demand, the sector is poised for significant growth and innovation. The country needs to double its current power production within the next few years to meet the new connection applications totaling 140TWh. The existing production capacity and grid infrastructure are insufficient to support the burgeoning energy demand. Addressing these challenges requires the smart adoption of new technologies, focusing on enhancing efficiency and sustainability. We expect the government to lay the necessary groundwork to allow for this development.

This imbalance between demand and supply creates substantial opportunities for investment in new energy solutions and infrastructure development. Investors can play a pivotal role in supporting Norway's transition towards a more robust and sustainable energy system by providing important development capital and supporting consolidation.

In 2024, the renewable energy sector remained an exciting industry for M&A activity, building on the post-pandemic trends observed in recent periods. Sustainability and decarbonization remains crucial drivers for M&A activity levels in the European area. The boom in renewable development projects emphasizes the growing confidence in renewables as a solid investment proposition worldwide.