In recent years, the renewable energy sector in Italy has seen significant growth, both in terms of installed capacity and the number of active companies. This expansion not only contributes to reducing greenhouse gas emissions but also creates numerous opportunities for companies through mergers and acquisitions (M&A).

The current state of renewable energy in Italy

The renewable energy sector in Italy is booming. In 2023, the total installed capacity from renewable sources was divided into 30.28 GW of solar photovoltaic, 12.34 GW of wind, 21.73 GW of hydroelectric, and 4.95 GW of bioenergy and geothermal. This represents an increase of 5,677 MW compared to the previous year, with solar photovoltaic seeing particularly significant growth of 5,234 MW. Currently, Italy has 37,655 companies active or potentially active in the renewable energy sector, showing a 13.2% growth compared to the previous year. Most of these companies operate in the photovoltaic sector (74.4%), followed by wind (37.1%), bioenergy (23.2%), hydroelectric (17.6%), geothermal (13.0%), and solar thermal (8.1%). These figures were highlighted in the “Filiere del Futuro” report promoted by the Symbola Foundation and Italian Exhibition Group.

M&A opportunities in the renewable energy sector

Mergers and acquisitions (M&A) represent a crucial strategy for companies in the renewable energy sector to expand their reach and enhance competitiveness. M&A can help companies achieve various strategic objectives, including geographical expansion, acquiring new technologies, increasing installation capacity, and diversifying energy sources.

In Italy, M&A transactions in the renewable energy sector can be particularly significant due to the growth context and the need to meet ambitious greenhouse gas reduction targets. The new National Integrated Energy and Climate Plan (PNIEC) aims for at least 65% of gross electricity consumption to come from renewable sources by 2030. Achieving this goal will require a substantial increase in renewable energy installations, facilitated by M&A transactions in the sector.

Benefits and chances of M&A for companies in energy sector

M&A transactions can generate significant synergies for companies in the renewable energy sector. By joining forces, companies can share resources, reduce operational costs, and improve production efficiency. These synergies optimize the use of existing infrastructure and benefit from economies of scale that can lower the cost per megawatt produced. Additionally, mergers can lead to greater investment capacity in new technologies and innovative processes, allowing companies to stay at the forefront of the energy transition.

M&A also offers the opportunity to diversify companies’ energy portfolios, making them less vulnerable to market fluctuations of a single energy source. For example, a company primarily focused on solar can acquire wind or hydroelectric capacity to balance energy production during periods of low sunlight. This type of diversification not only enhances operational resilience but can also increase long-term financial stability

Summary

The renewable energy sector in Italy is expanding rapidly, with growing installed capacity and an increasing number of active companies. Mergers and acquisitions (M&A) are a key strategy for companies in the sector to grow, diversify, and enhance their environmental sustainability. With the goal of achieving 65% renewable energy by 2030, M&A will offer significant opportunities to create synergies and advance toward a greener and more sustainable future.

By adopting M&A strategies, companies in the renewable energy sector can not only improve their competitiveness but also contribute significantly to reducing greenhouse gas emissions, helping Italy achieve its ambitious climate goals.