The key motivation for 2025 utility M&A is a quest for scale. The best way to bet on it is to build positions in the strongest companies that are on track to grow with or without a deal — like Brookfield Renewable Partners LP (BEP), notes Roger Conrad, managing partner at Capitalist Times.
Not one union of regulated US utilities has ever failed to ultimately create a financially stronger, more efficient, and more resilient company. The reason for that unblemished record of success: Essential services are always cheaper, cleaner, safer, and more abundant when provided at scale.
Brookfield Renewable Partners LP (BEP)
And that applies even when the underlying technology is fundamentally local like rooftop solar. The proof is the mass bankruptcies and consolidation of market share to a handful of companies in the past few years.
BEP has now closed its purchase of National Grid Transco Plc’s (NGG) US renewable energy assets. That adds 3.9 GW of contracted generation either operating or in advanced stages of construction to enter service in the next year. And it has acquired another GW that’s “construction ready” as well as a 30 GW “development pipeline” — all for an enterprise value of just $1.74 billion.
Brookfield Renewable is an extremely high percentage bet to continue reaping the benefits of accessing a deep pocketed source of private capital.
