Since the Industrial Revolution began in the 1750s, the demand for energy and power has increased dramatically with each passing year. The advent of the Internet, the subsequent digital revolution, and the emergence of smart devices have further led to a spike in household and industrial energy consumption. As a result, the energy and power domain has grown exponentially in the past few years. At the same time, since the dawn of this century, there has been a gradual rise in awareness regarding environmental sustainability and green energy. Several studies have shown that the energy generation landscape is the biggest contributor to greenhouse gas emissions globally, due to which governments and private companies are slowly shifting to renewable energy.

Apart from these factors, the energy and power domain is set to witness major transformation owing to the competitive spirit displayed by the leading companies in this sector. These businesses have established alliances like mergers, acquisitions, and partnerships with other companies to take a lead in the sector in Q2 2024.

Mergers and acquisitions creating new opportunities for growth and investments in the domain

Mergers and acquisitions are one of the most commonly opted-for routes by companies to strengthen their foothold in any sector. Many leading companies in the energy and power domain are establishing alliances to take an edge over their competitors in the long run. For example, in April 2024, Stellantis, a multinational automobile corporation, issued a press release stating that it had acquired a huge stake in 360 Energy Solar, a leading solar power producer based in Argentina. As per the press release, Stellantis acquired 49.5% of the stake for which it paid $100 million to the solar power company. The acquisition was aimed at making the automobile company more self-sufficient in terms of energy generation in the long run.

In May 2024, RWE, a leading energy company based in Essen, Germany, announced the acquisition of 599 MW of energy storage and solar power projects from Galehead Development, a renewable energy projects developer. The acquisition is expected to increase the footprint of RWE in the energy storage system industry and help the company expand its operations globally in the years to come. Also, the agreement is in line with RWE’s commitment to improve the share of clean energy in its power generation processes.

Innovations and partnerships increasing the revenue share of the sector in Q2 2024

In the second quarter of 2024, many leading energy companies have signed partnership agreements with other companies to expand their operations globally. In April 2024, RTX, a major player in the aerospace and defense industry, announced that it had signed a deal to partner with ENGIE North America, a renewable energy solutions developer. Under the deal, RTX will be supplied with 1.5 million megawatt hours of renewable energy over the next ten years, thus helping the company achieve its 2025 goal of running 10% of its operations through clean energy. Also, the acquisition will aid RTX in accomplishing the aim of reducing its carbon emissions by 46% by 2030.

In June 2024, Entergy, an electric power generation and distribution company, issued a press release stating that it had partnered with NextEra Energy Resources, a Florida-based electricity supplier. As part of this collaboration, both companies will pool their resources to develop 4.5 GW energy storage and solar power projects in different parts of the US including Louisiana, Texas, Mississippi, and Arkansas. Ultimately, the partnership will enable Entergy and NextEra Energy Resources to take a lead over their peers in the industry in the years to come.

Product and service launches helping the domain flourish in the second quarter of 2024

The energy and power domain has experienced significant growth in Q2 2024 on account of the innovative products and services launched by several multinational corporations. For example, in May 2024, NW Natural, a natural gas distributor in Oregon, and Modern Hydrogen, a distributed hydrogen production systems manufacturer, jointly unveiled a carbon capture project in Portland, Oregon. The equipment required for the carbon capture processes has been jointly developed by both these companies. The project is expected to help NW Natural and Modern Hydrogen expand their operations in the next few years.

In June 2024, DuPont, a multinational chemicals company, along with Desun Energy, a solar panel manufacturer, jointly launched flexible solar panels with DuPont™ Tedlar® PVF films. Both these companies had participated in the Intersolar Europe 2024 which took place between 19 – 21 June 2024 in Munich, Germany. The companies released a joint statement saying that the solar panels had been designed to sustain harsh environments and portable solar applications, thus helping address the various requirements of end consumers.

In June 2024, SolarEdge, a home solar power system developer, announced the launch of its next-generation three-phase solar inverter, along with a dedicated home battery. The company launched this innovative product at the Intersolar Europe 2024 conference in Germany. The company has claimed that the product launch will help the company address the growing demand for a robust rooftop solar power system in the European markets comprehensively. Also, the launch is expected to augment the growth rate of the company in the coming period.

Technological advancements laying the foundation for unprecedented growth of the domain in the next few years

Apart from mergers, product launches, and acquisitions, the energy and power sector has grown owing to the huge investments made by leading companies in R&D activities which have paved the way for several technological advancements and innovations. For example, in April 2024, Hitachi Energy, a leader in sustainable energy solutions, issued a press release announcing an investment of over $100 million in its transformer facilities in Quebec, Canada. This investment is aimed at establishing advanced testing facilities for large power transformers and an engineering and design center to fund several research and development-related activities.

In April 2024, Hitachi Energy announced that it was investing $1.5 billion to enhance its transformer production capabilities to meet the global demands of the electric vehicle manufacturing industry and the renewable energy generation sector. Hitachi Energy’s senior VP and head of the transformer business was quoted saying that the investment would help the company to expand its manufacturing facilities across the world in the years to come, thereby increasing the company’s revenue share in the power grid industry.

In June 2024, Wärtsilä, a leading manufacturing company based in Finland, released a press statement announcing the launch of the first large-scale 100% hydrogen-ready engine power plant across the globe. The press release also mentions that the new engine can run on a blend of hydrogen and natural gas efficiently and has completed around 1 million running hours with an installed global capacity of a thousand megawatts. The engine has been designed keeping in mind the net-zero commitments made by various countries, which will ultimately require 100% renewable power systems.

Other developments and upcoming trends that have influenced the energy and power sector in Q2 2024

The energy and power sector is constantly changing, influenced by trends, actions of key players, and other factors that drive its growth. For example, Intersolar 2024, one of the most reputed events in the solar power industry, was held between 19 – 21 June in Munich, Germany. The main theme of the event was energy transition for a sustainable future, and the conference featured keynote speeches and workshops from industry leaders across the globe. Many companies participated in the event to showcase their technologies and products and signed deals with their clients to expand their networks around the world.

In June 2024, IEEE, the largest technical professional organization in the world, arranged the 15th International Symposium on Power Electronics for Distributed Generation Systems in Luxembourg. The conference featured plenary speeches, workshops, and tutorials for the design and deployment of power electronics in different end-use industries. The seminars and exhibitions were followed by a gala dinner and awards ceremony. The event helped industry participants to get together, discuss ideas, and share their experiences with new entrants of the landscape.

In June 2024, the International Renewable Energy Agency hosted the International Energy Workshop to bring together researchers, policymakers, and other stakeholders together to discuss technologies and the latest developments in the field of renewable energy. The 42nd edition of this conference was held between 26 – 28 June 2024 in Bonn, Germany which witnessed seminars, tutorials, and presentations from experts and industry leaders to help participants understand the evolution of this landscape.

Highlighting the performance of the energy and power domain in Q2 2024

The energy and power sector has experienced huge growth in the second quarter of 2024 due to the rising demand for energy from households and industries across the globe. Moreover, the shift toward green and clean energy has augmented the growth rate of the domain in Q2 2024. Along with this, mergers, acquisitions, and partnerships have also played an important role in the rise of this landscape. Additionally, product launches like those by DuPont, NW Natural, and SolarEdge are anticipated to increase the footprint of these companies globally. Thus, the competitive nature of the sector and the growing global population have positively impacted the domain in Q2 2024.

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