While large-scale solar projects are struggling to get off the ground in France, investors are being attracted to small and medium-sized assets. Experts from AURIS Finance, a mergers and acquisitions consultancy, share their analysis.
According to data published by Enerdatics, the global M&A market in the renewable energy sector remained strong in the first quarter of 2025, with a total value estimated at $32 billion. North America led the way with $13 billion in M&A activity. Europe came second, with an estimated transaction value of $8 billion. Although the number of clean energy transactions remains high, growth in the wind and solar power sector is slowing. This slowdown is particularly noticeable in very large transactions. A study by economic intelligence firm Enerdatics, published by pv magazine, found that investor demand for medium-sized solar projects (less than 30 MW) remains strong. Although the solar M&A market in France slowed in 2024, with only five asset transactions recorded compared to seven in 2023, smaller projects have managed to attract the attention of financial partners.
Comparative advantages
In the highly regulated solar energy sector, small-scale photovoltaic projects have several advantages: administrative procedures are simpler and the projects tend to be more widely accepted locally. Medium-sized projects are less exposed to global economic fluctuations and offer more stable returns than large projects. Solar energy installations backed by power purchase agreements (PPAs) provide issuers with predictable long-term revenues. In 2024, CVE Group, a company specialising in solar photovoltaics and biogas, completed several transactions ranging from 5 to 10 MW thanks to simplified authorisations. By mid-2025, CVE had 652 power plants in operation or under construction, representing 880 MW, including 466 MW in France.
PPAs are on the rise
This type of installation is currently in high demand in the corporate sector, as it enables the production of green energy close to production sites. Groups such as L’Oréal and Schneider Electric in northern France have adopted this approach. Within the Engie group, there is a growing trend towards using PPAs. The energy company has signed agreements to purchase 4.3 GW of renewable electricity in 2024, compared to 2.7 GW in 2023 — equivalent to supplying 136 TWh of electricity.
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While large-scale solar projects are struggling to get off the ground in France, it seems that medium-sized assets now represent the future of the sector. Their resilience, regulatory flexibility, and appeal to companies committed to the energy transition make them attractive to investors. In this context, there could be an increase in mergers and acquisitions, driven by a desire to pool expertise, achieve critical mass or structure diversified portfolios. AURIS Finance’s experts specialise by sector. They can support you in developing your business, from identifying the target to integrating it, including searching for financial partners.
