The report below gives a good overview of the Summer 2022 M&A activity in the Energy Industry Sector. The global energy market is expected to witness significant growth in 2022, owing to increased investments in the renewable energy subsector. The energy investments are predicted to increase by 8.0% in 2022 and reach $2.4 trillion, as per a recent estimate conducted by the International Energy Agency (IEA). The rapidly growing power and energy efficiency subsectors would fuel investments in this sector, as per the same report. The bulk of the investments in renewable energy would be primarily focused on China and developed economies. Renewable energy sources are rapidly gaining traction due to factors such as technological advancements, declining prices, and enhanced battery storage capabilities. The number of capacity installations remained at an all-time high in 2021, despite numerous challenges such as supply chain constraints, higher shipping, and commodity costs. In addition to that, wind and solar capacity in the US increased by 28.0% in 2021, compared to 2020, as per report published by Deloitte in 2022. In 2022, it is expected that climate change-related government legislation would lead to increased investments in global renewable energy sector. Furthermore, the growth of renewable energy sector is anticipated to accelerate in 2022, due to greater emphasis on environmental, social, and governance (ESG), increased awareness on climate change, and growing adoption of clean energy sources from significant market sectors.
Posted by Roy Graham.