Renewable energies: a concentrated market

For months, acquisitions and stakes have been accelerating in France. To catch up in the energy transition, energy heavyweights are forced to resort to mergers and acquisitions.

The announcements are coming thick and fast, taking on the appearance of a real tug-of-war. On one side is Engie, the world's third largest energy company (excluding oil), and on the other is Total, the oil and gas supermajor. At the center is a rapidly changing market: renewable energy. In recent months, many of its players have seen their fortunes change thanks to strategic mergers.

Engie in the lead

The latest acquisition to date is that of Langa. If Engie acquired the Breton SME specializing in wind and solar electricity production, it did so to stay in the race. Acquiring one of the three most dynamic players in the French market allows Engie to consolidate its leading position. It acquired first place in solar power in 2015, following the acquisition of Solairedirect. A French pioneer in competitive solar power, the group develops, operates, maintains, and finances large-scale solar farms on four continents.

Total shakes up the market

In a challenger position, Total is positioning itself in the energy transition market. 2017 was a turning point in its conquest strategy. Acquisition of a 23% stake in Eren Renewable Energy with full control in 2022. Acquisition of energy efficiency specialist GreenFlex. The acquisition of Saft, the French flagship battery company, and the takeover of Californian SunPower had already highlighted an ambition. Now, it is clear: Total wants to shake up the market, to be a key player from production to distribution. This is evidenced by the acquisition of Direct Energie, which had just acquired Quadran, one of the independent leaders in green energy.

Race for size

With a doubling of the volume of offers for solar projects alone, the French government has triggered a race for size among the many small and medium-sized companies in the sector. While the public company EDF plans to build 30 GW by 2035, the market is consolidating very quickly. The French solar company Tenergie has partnered with Crédit Agricole. In addition, foreign funds and groups are also involved. For example, the Danish renewable energy investment company Obton has acquired the French developer Coruscant. Amarenco has done the same. The Irish energy company has acquired Groupe Carré, a developer and operator based in the Tarn region. There's no doubt: a reconfiguration of players is underway. The contours of the future energy market are taking shape.

Cyrille Arnoux, Web Editorial Manager