There’s no question about it: global demand for clean power generation is on the rise.
Last year, clean power accounted for over 40% of global electricity as a result of unprecedented growth in renewables. Projections show that renewable energy sources will surpass coal as the world’s top power source in 2025, and account for almost half of global electricity by 2026.
This is good news for the planet — and for private market investors.
Keeping pace with the booming demand requires strong infrastructure, and the overwhelming majority of companies creating that infrastructure are private.
In this PE Playbook, the Grata team has put together the need-to-know trends for investors considering making moves in the clean power infrastructure market, including:
- How the industry is fragmented
- Which sectors are seeing the most growth
- Where dealmakers could have the opportunity to establish themselves as market leaders
Source: Grata
The market map above is not intended to be an exhaustive representation of companies in the space.
Companies that provide services that fall into multiple segments are categorized in this report by their primary offering.
M&A Trends in the Clean Power Infrastructure Industry
Transactions
Source: Grata
Clean power infrastructure is a $2T market, and the M&A world wants in.
Transactions in the space have steadily trended up over the last 10 years, particularly those by strategic buyers.
The activity tracks with the growing demand for renewables and energy efficiency driven by:
- Increasing adoption of electric vehicles (EVs)
- Growing use of heat pumps
- Data center technology gaining momentum
- Higher global electricity consumption
Most Active Sponsors
Source: Grata
Blackstone leads the pack of most active financial sponsors in the clean power infrastructure industry with 76 relevant acquisitions. Many of its deals target companies focused on power optimization and distribution, as well as energy storage.
Most Active Strategic Acquirers
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Source: Grata
ENGIE SA is the most active strategic acquirer in the space with 42 relevant acquisitions. Many of its targets are companies operating in renewable energy project installation.
Clean Power Infrastructure Industry Overview
Market Distribution
Geography
Source: Grata
With clean energy demand on the rise around the globe, there are literally opportunities everywhere.
The US leads the global clean power infrastructure industry with over 43k companies. The UK takes second place with 20.8k companies, and Germany follows in third place with 15.9k.
Read about how Grata is providing full visibility into the private market in Europe and Australia here.
Source: Grata
Unsurprisingly, California is home to the most US-based clean power infrastructure companies. The state boasts the largest number of clean energy jobs in the country, and it’s a leader in the production of solar and geothermal energy. California also offers several incentive programs for residents and businesses to promote energy efficiency, renewables, and clean transportation.
Texas follows in second place, in terms of total clean power infrastructure companies and solar power production. The state is also the top wind power generator in the country.
Florida is the third-highest producer of solar power in the US. The state is seeing a surge in installations as a result of federal incentives, falling costs of solar power, and advancements in energy storage tech. Rooftop solar panel installations grew 8x between 2019-2024 after the state removed solar leasing restrictions. Utility company Florida Power & Light is also working to deploy 2.2GW of battery energy storage by the end of 2027, according to Integrity Energy.
Dealmakers interested in clean power infrastructure should also look to less populated states for opportunities. Iowa, for example, has seen significant public and private investment in clean energy in recent years. The state ranked fifth in the country for newly built renewable energy capacity in 2022. Wind energy produces the majority of Iowa’s clean energy.
Meanwhile, South Dakota's wind energy production has tripled since 2012. The state is a major exporter of renewable energy.
Ownership
Source: Grata
Public energy and utility companies and their subsidiaries own over 60% of the clean power infrastructure industry. However, the overwhelming majority of companies in the space are privately owned.
There are currently more than 42,000 independent clean power infrastructure companies that are ripe for acquisition.
Segment Distribution
Source: Grata
This report focuses on the following segments of the clean power infrastructure industry. Grata users can see curated lists of some of the companies used to create each segment by clicking the links below.
Clean Power Infrastructure Public Comparables
Source: Grata
Public companies in the installation & maintenance sector are the most reliable performers, on average. While other sectors boast higher mean revenues, installation & maintenance consistently outperforms industry averages. The market is also profitable overall, and it’s growing. With demand for clean energy increasing around the world, the installation & maintenance space will almost certainly continue to be a safe bet for investors.
The microgrids sector is also seeing significant growth driven by rising demand for consistent, sustainable, and resilient energy solutions. As the global climate continues to change and extreme weather becomes more frequent, aging power grids become more stressed and more likely to cause outages. Microgrids offer a safeguard against that. Hospitals, data centers, military installations, and other critical infrastructure businesses are increasingly adopting microgrids to keep their services running smoothly.
Meanwhile, the EV charging and energy storage markets are seeing negative average EBITDA margins. Both sectors face challenges with steep up-front costs, regulatory hurdles, and supply chain volatility. Additionally, ongoing costs for operating and maintaining EV chargers are significant, particularly during peak energy consumption times. Higher electricity demand from EVs also causes strain on the power grid. While power grid modernization is in the works, it isn’t currently moving fast enough to keep up. Plus, with the Trump administration’s ongoing efforts to dismantle EV incentives and policies, the market will likely continue to face headwinds in the coming years. That doesn’t mean dealmakers should count the industry out entirely — just know that you might be playing the long game here.
Clean Power Infrastructure Private Comparables
Source: Grata
In the private realm, clean power infrastructure companies are raising significant capital across the board. Dealmakers may look to markets with higher amounts of investment, such as installation & maintenance and energy storage, for the advantage of momentum. However, those sectors will likely also come with more intense competition.
Private market investors interested in the clean power infrastructure industry should consider the grid management space, which has the highest average growth rate and the lowest amount of capital raised of the sectors analyzed here. As new factors (more electric vehicles, more extreme weather, etc.) place more stress on the aging power grid system, management and optimization technology is becoming increasingly important. Demand for electricity shows no signs of slowing, so management systems will almost certainly continue to grow in tandem. Additionally, the sector’s low capital could signal less competition for dealmakers, and more opportunity to establish themselves as leaders in the space.
Notable Acquisitions in Clean Power Infrastructure
Source: Grata
EARNZ Acquires A&D Carbon Solutions
In June, UK-based energy services company EARNZ acquired A&D Carbon Solutions, which was valued at $3.8M at the time. A&D Carbon Solutions offers decarbonization systems, such as solar panels and heat pumps, for homeowners. The deal was part of EARNZ's “buy and build” strategy to expand its energy efficiency solutions.
If you’re an investor interested in companies similar to A&D Carbon Solutions, try these:
Learn more about this acquisition — or any of the others listed below — anytime, anywhere using the latest version of the Grata Go mobile app. Get all of the ownership and investment data you need right in the palm of your hand.
Source: Grata
Kohlberg Kravis Roberts & Co Purchases Zenith Energy
Also in June, KKR announced its acquisition of Australia-based Zenith Energy in a deal valued at $1.3B. The deal is expected to close later this year, pending regulatory approval.
Zenith provides tailored, remote, off-grid power generation and urban microgrids. Its typical customers are major projects in Australia's mining industry, as well as commercial and industrial properties in remote areas that require reliable power solutions.
If you’re an investor interested in companies similar to Zenith Energy, try these:
Advent International Buys LayerZero Power Systems
Global PE investor Advent International signed a definitive agreement in June to acquire a majority stake in LayerZero Power Systems, an Ohio-based company that provides power distribution and quality monitoring solutions. The deal is worth an estimated $1B.
Abhishek Chauhan, Principal at Advent, said of the deal, “Leveraging Advent’s deep sector insights, operational resources, and global reach, we see significant opportunities to expand the Company’s manufacturing footprint, optimize operations through lean practices, and strengthen customer relationships.”
If you’re an investor interested in companies similar to LayerZero Power Systems, try these:
H.I.G. Capital Acquires 4Refuel
Earlier this month, H.I.G. Captial completed its $400M acquisition of 4Refuel. The Canada-based company provides on-site refueling services, delivering traditional fuels, biofuels, and gaseous alternatives directly to vehicles or equipment. Its alternative energy infrastructure division, ComTech Energy, customizes low-carbon alternative fuel solutions. It also offers a fuel management system for visibility into fuel purchasing, consumption, and greenhouse gas emissions reporting.
If you’re an investor interested in companies similar to 4Refuel, try these:
Nanofilm Technologies International Purchases Sydrogen Energy
Nanofilm Technologies entered an $11.8M agreement to purchase Sydrogen Energy, a subsidiary of Venezio Investments. The deal is expected to be completed by November 2026.
Nanofilm CEO Shi Xu said of the deal, “"By making Sydrogen Energy a wholly owned subsidiary, we can better align its activities with our broader corporate strategy and accelerate innovation in sustainable energy solutions,”
If you’re an investor interested in companies similar to Sydrogen Energy, try these:
Legrand SA Buys Cogelec
Also this month, Legrand announced it signed an agreement to acquire Cogelec, a France-based company that specializes in designing and manufacturing electrical equipment and solutions for the electrical distribution and protection of buildings. Cogelec was valued at just over $297M at the time of the agreement.
If you’re an investor interested in companies similar to Cogelec, try these:
Live Clean Power Infrastructure Deals
Hundreds of live deals and active mandates are being showcased on the Grata Deal Network. Here are some examples of mandates related to the clean power infrastructure industry:
- A solar energy system design and installation company with $11.6M in revenue, a $1.5M EBITDA, and a 13% margin
- An Australia-based sustainability tech company focused on energy efficiency with $13.1M in revenue, a $2.8M EBITDA, and a 21% margin
- A renewable energy infrastructure business with an expected valuation of $3.1M
Grata users can see the deals directly in the Grata Deal Network by following the links above.
If you’re interested in these deals and you want to see more, register to learn more here.
Are you a sell-side advisor interested in generating inbound leads for your data center infrastructure deal? Get started here.
Clean Power Infrastructure Conferences
Grata makes it easy for dealmakers to find conferences, events, and trade shows in their industries. See attendee lists so you can set up meetings beforehand and make the most of your travel time. Check out which companies attended past events to find more potential targets.
Here are a few of the events related to the clean power infrastructure industry that dealmakers can find and track in Grata:
Source: Grata
Get the Most Out of the Playbook
If you’re an investor interested in making moves in the clean power infrastructure space, Grata can help you put the insights in this article into action.
From in-depth market research to sourcing to pipeline management and relationship nurturing, Grata’s end-to-end dealmaking platform streamlines your workflows so that you can close more deals.
Schedule a demo today to get started.
