Asia’s energy deals to rise in 2025

Guess what region will fuel the increase.

More deal-making in Asia’s energy sector is expected to happen in 2025, according to global law firm Norton Rose Fulbright.

In its “Asia M&A trends: Future outlook,” the firm said this is driven by the “significant focus of Southeast Asian nations on renewable energy in developing and expanding their electricity grids as the region develops and energy demands increase.”

Countries have been shifting to cleaner energy sources, possibly partly driven by China’s 2021 policy of ceasing support of coal projects abroad, coupled with cheaper wind and solar power over the past decade.

Some Southeast Asian nations have passed measures to encourage more renewable energy projects. These include the Cambodian government’s target of 70% dependence on clean power by 2030, and the Philippines amending its foreign direct investment rules to allow 100% foreign ownership of renewables.

“Taiwan, whilst not in Southeast Asia, is also seeing significant inbound investment in its offshore windfarm projects and we anticipate similar trends continuing to develop in countries in Southeast Asia as legal frameworks are put in place,” Norton Rose Fulbright said.

This push for renewables and decarbonisation will drive significant investment and deal-making, as joint ventures form between local and technological experts, followed by sales and acquisitions of successful projects, the firm said.