Spain's Solar Leads Energy M&A; Investors Turn to Batteries, Grid

Spain recorded 73 energy M&A transactions in 2025, a 30% decline from the previous year and a sharper drop than the 15% fall across Europe. Solar projects remained dominant, representing 52% of the deals, though their share fell from about 70% in 2024. Renewable generation overall accounted for 85% of the transactions, while alternative renewables such as wind, hydro, biogas, hybrid solutions and storage grew to roughly 15% of the market.

According to the Spanish Energy Deal Pulse Q1 2026 report by Alvarez & Marsal, investors are shifting focus toward assets that enhance system flexibility, notably battery storage and transmission‑distribution infrastructure. This change reflects concerns over grid congestion, integration costs and tighter returns, prompting funds to move capital away from early‑stage solar projects toward assets offering clearer revenue visibility.