In the post-globalization era, the energy and power domain has witnessed exponential growth owing to the rapid pace of industrialization and urbanization in developed and developing countries across the globe. This has increased the demand for energy from commercial enterprises and industrial facilities worldwide. Furthermore, huge growth in population in different nations has also surged electricity consumption in the residential sector. Another important factor influencing the growth of the landscape in the past few years is the gradual transition toward renewable energy. The growing pollution caused by fossil fuel combustion has led to a shift toward solar, wind, hydropower, and nuclear energy, thus creating new investment opportunities in the industry.

In the last few years, surge in the adoption of digital technologies and advent of smart grids have opened new avenues for the energy and power domain. Many leading power generation and distribution companies have started integrating AI, machine learning, data analytics, and blockchain to enhance the cybersecurity of their networks and reduce the risk of outages and power failures. Apart from these developments, the strategic alliances established by leading players in the domain have helped the sector flourish. In the first quarter of 2025, for instance, several multinational businesses signed M&A deals and partnership agreements with their peers to expand their footprint in the landscape. This newsletter covers all these important developments that shaped the dynamics of the energy and power industry in Q1 2025.

Mergers and acquisitions by top companies driving sectoral growth

In March 2025, Apollo Global Management, Inc., an asset management company based in the U.S., announced that it was acquiring a majority stake in OEG Energy Group, a major offshore energy solutions firm, for over $1 billion. Over the last few years, OEG Energy Group established itself as a key player in the oil and gas exploration sector and has been gradually expanding its presence in the renewables landscape. With this business move, Apollo aims to help the company in its transition toward sustainable and green energy. Recently, as part of its future business strategy, Apollo announced that it would be funding climate-friendly projects in the coming five years. This deal, thus, highlights the company’s vision to increase its energy-transition investments by 2030.

Launch of novel initiatives, products, and services accelerating sectoral growth

In March 2025, First Hydrogen Corp., a Canada-based green hydrogen company, unveiled its subsidiary, First Nuclear Corp., to promote innovations and R&D activities related to small modular reactors (SMRs). Small modular reactors are unique nuclear power plants that have an energy generation capacity of up to 300 MW(e) per unit. While their working is similar to that of conventional nuclear reactors, they are a cost-effective option and have a short construction duration. Apart from this, the capital investments required for setting up these facilities are quite lower which makes them an affordable alternative for developing nations.

Collaborations among key stakeholders transforming the sectoral dynamics

In February 2025, BYD Energy Storage, a leading battery manufacturing company, announced a partnership with Saudi Electricity Company (SEC), an electric power distribution company. As part of this collaboration, both companies have signed a 12.5 GWh contract, taking their total agreement to 15.1 GWh. The initiative is expected to become the world’s largest battery energy storage project in the coming period, thus helping Saudi Arabia achieve its goal of generating 50% of its electricity from renewable energy sources by 2030. The partnership is anticipated to boost the revenue share of BYD Energy Storage significantly in the future.

Again, in March 2025, Indian Railways, a state-owned rail transport company, issued a press release stating that it had started formal talks with the Department of Atomic Energy (DAE), a governmental agency, to establish small nuclear power plants in the country. The plan envisions a partnership between these two entities, wherein the land and power offtake will be provided by Indian Railways, and DAE will bear the responsibility of setting up the power generation units. The main idea behind this project is to help the Government accomplish its net-zero emission targets by 2070.

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