BESS remains a lucrative market for mergers and acquisitions

The panel discussion focused on M&A in large-scale Battery Energy Storage Systems (BESS) at the Energy Storage Summit 2026 on February 24th. According to James Taggart, head of corporate development at Eelpower Energy, the renewables market, particularly storage, is currently a hotbed of activity driven by countries’ renewable energy targets and the need for resiliency, often achieved through battery storage systems. Eelpower Energy, a UK-based company, emerged from a collaboration between Eelpower, Equitix, and the UK’s National Wealth Fund.

While BESS prices are decreasing, there is a challenge in escalating prices for construction-related components, such as local labor, leading to investment difficulties. In the UK, there has been a slowdown in deal-making for development portfolios due to reforms in the grid connection queue, but this is seen as a temporary situation.

Speaking about operational projects M&A versus development portfolios, Heather Offord from Eku Energy mentioned that there have been fewer sales of operational assets, making it challenging for investors to assess potential deals. Similarly, Nadiya Vargola from Alpiq highlighted the limited availability of operational assets in Continental Europe for a track record in operational M&A. Despite this, Alpiq deploys its own BESS projects and provides services to other operators.

A consensus among the panelists was the preference for larger projects when it comes to M&A, especially at the ready-to-build (RTB) stage. They emphasized the complexity of issues that can arise in big projects compared to smaller ones, highlighting the importance of scale in M&A transactions. These discussions shed light on the current landscape of the BESS market and the various challenges and opportunities present in this sector.

The panel discussion at the Energy Storage Summit 2026 showcased the dynamic nature of the M&A market in the BESS industry, with experts providing insights into the evolving trends and key considerations for investors looking to navigate this space. Despite challenges such as pricing fluctuations and grid connection reforms, the consensus remains that the attractiveness of BESS in the renewables market continues to grow, driven by the need for sustainable energy solutions and grid resiliency.