Clean Energy Deals Poised for Revival in 2026 as M&A Activity Gains Momentum

Clean energy projects are poised for a revival in mergers and acquisitions activity as electricity demand strengthens and asset valuation expectations align, according to top industry players. Executives at JPMorgan Chase & Co., Brookfield Asset Management, and Nuveen Infrastructure see potential for a new wave of transactions as data centers and other industries increasingly rely on renewable energy. Uncertainty around energy policy and tariffs, which stymied activity in 2025, appears to be receding.

Asset owners are lowering price expectations, while buyers are showing greater willingness to pay for clean energy generation capacity. "Expect more mergers and acquisitions for renewable assets in 2026 as developers or sellers of projects and companies become more realistic in terms of valuation," said Greg Zdun, JPMorgan's Asia Pacific head of energy transition and natural resources according to Bloomberg.

The sector missed out on the strong global M&A environment in 2025, where the total value of deals reached $4.5 trillion. In 2025, 55.3 gigawatts of generation capacity were acquired across solar, wind, and energy storage projects, the lowest total since 2017, according to data from BloombergNEF.

Why Did This Happen?

The decline in deal activity in recent years was partly due to uncertainty and market volatility, particularly stemming from U.S. policy changes. Nuveen Infrastructure noted that when it attempted to exit some assets from its European fund a few years ago, there was little buyer interest.

"Slowly we're starting to see a little bit more confidence, and also the exit market starts to be a bit more fluid in the clean energy space," said Joost Bergsma, Global Head of Clean Energy at Nuveen according to Bloomberg.

How Did Markets React?

In India, NLC India Limited's shares rose 4 percent after signing a non-binding MoU with the Government of Gujarat to develop large-scale renewable energy projects. The agreement, which envisions an investment potential of approximately ₹25,000 crore, aims to significantly boost Gujarat's renewable energy capacity according to Business Standard.

Reliance Industries also announced plans to invest ₹7 lakh crore in Gujarat across clean energy and data centers. The move will support the development of a global clean energy hub in Jamnagar and expand India's artificial intelligence infrastructure according to Economic Times.

What Are Analysts Watching Next?

In the U.S., clean energy infrastructure is receiving renewed attention as tech companies like Meta and Microsoft invest heavily in nuclear power to meet the rising energy demands of AI data centers. Meta recently signed agreements with Vistra, Oklo, and TerraPower to secure long-term nuclear energy contracts according to Nomi.

Bank of America has also highlighted growing structural tailwinds for metal and mining stocks in 2026, including government recognition of the strategic importance of certain metals and a strong earnings upgrade cycle. The firm has recommended several Buy-rated stocks, including BHP and Glencore according to Investing.com.

The shift in energy policy under the Trump administration has also been a factor. The administration has accelerated its withdrawal from climate change agreements and is shifting support toward fossil fuels. This move could impact the long-term outlook for renewable energy and related investments according to Seeking Alpha.

Despite these challenges, investors are watching for continued policy clarity and stable valuation trends that could further stimulate clean energy M&A activity. Analysts suggest that a more realistic approach to pricing and a growing demand for clean energy infrastructure could drive a new wave of deals in 2026 according to Bloomberg.

The convergence of market confidence and renewed demand appears to be creating favorable conditions for a rebound in clean energy asset transactions. Investors and analysts alike are closely monitoring developments in both public and private sectors as the clean energy market evolves according to Bloomberg.