The UK’s renewable energy market is on track to see a record level of M&A in 2025, with major investment flows into battery storage, solar power and onshore wind. This is being driven by UK government policies and ambitious Net Zero targets, which are generating significant opportunities for investors, developers and operators.
Last year, M&A activity involving both ready-to-build and operational renewable energy assets was valued at £4.4 billion, while renewables accounted for close to two-thirds of energy production.
According to Knight Frank’s latest sustainability report, 4.4GW of capacity changed hands through M&A during the first half of the year, compared to just under 5GW in the entirety of last year. With transaction volumes peaking at 6GW in 2023, H1’s dealmaking levels indicate that 2025 is set to be a record-breaking year.
Knight Frank’s Head of ESG and Sustainability Research Flora Harley said that there was “an encouraging picture across all low-carbon energy sources”, with solar establishing itself “as the furthest advanced and gathering pace”, with more solar generated so far this year than in the entirety of 2024.
Harley continued: “With the UK Government setting an ambitious target of 95% renewable energy by 2030, there are significant opportunities for investors, developers and operators. Supportive policies such as the Clean Industries Sector Plan and Solar Roadmap will help galvanise these efforts across the UK and sustain momentum during the transition.”
Corporate Power Purchase Agreements (CPPAs) are proving to be a crucial investment driver. There were 18 CPPAs signed in the UK during 2024, while a further eight have been publicly announced so far this year, compared to just three in 2019. Historically, solar has accounted for around two thirds of CPPA deals, a figure that has increased to three quarters in 2025.
Despite these positive developments, there are concerns surrounding planning and approval times, with the report noting that median approval times are ten months for solar projects exceeding 10MW and 1.4 years for onshore projects.
For projects in planning, however, these median times are significantly longer, with eight month waits for storage projects, 12 month waits for solar projects and 18 months for onshore wind developments.
Knight Frank also reports that between 60 and 80 per cent of projects that have received planning permission are still awaiting construction, highlighting the significant delays that are hitting deployment.
The report also outlined concerns around grid capacity, with constraints described as posing “significant issues” for developers. However, Knight Frank also points out that recent government moves to fast-track planning decisions and grid connections could ease these problems.
David Goatman, Global Head of Energy, Sustainability and Natural Resources at Knight Frank, commented: “The UK’s combination of ambitious net-zero targets, a well-established renewable energy pipeline and growing opportunities in grid flexibility and storage, continues to create a compelling environment for investment.”
“Knight Frank are supporting investors that are seeking exposure to renewable energy infrastructure, from development-stage projects all the way across to operational assets. With the maturing of the technologies involved, investors are growing more willing to take on construction risk, often driven by the opportunity for higher returns.”
Find out more about M&A in renewables and sustainability:
Integrating ESG into your M&A strategy
Environmental & sustainability M&A – Consulting and Engineering driving deals
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