Dealcast: The M&A Podcast Why investors are shifting positions on the energy transition
Oct 3, 2025
Carlos Martinez, Canada editor for Mergermarket, dives into the shifting landscape of energy investments. He discusses BlackRock's hefty $38 billion acquisition of a utility company and how investor focus is turning towards Canada amidst U.S. policy uncertainty. The conversation covers the rising interest in lower-risk energy plays, including alternative fuels and regulated utilities. Additionally, Carlos reveals how tech giants are influencing electricity demand and shaping power purchase agreements, highlighting a broader transformation in energy investment strategies.
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US Energy Mix And Growing Pains
- The US grid is still majority fossil-fuelled, with natural gas dominant and wind/solar now nearly 20% of generation.
- Rapid renewable growth caused supply-chain bottlenecks and long grid connection delays that slowed deployment.
Policy Shift Tightens Investment Focus
- The Trump administration rolled back parts of the Inflation Reduction Act, reducing tax credits and freezing climate grants.
- Private equity shifted toward lower‑risk, late‑stage projects and niche areas like distributed energy and gas capture.
Sponsors Hedging By Moving To Canada
- Greenwood Sustainable Infrastructure and others are looking to Canada to avoid short‑term US policy risk.
- Canada is seen as a safer jurisdiction for renewables amid US uncertainty.