Energy & Infrastructure M&A 2025 - Trends And Developments

The Energy Transition to a Sustainable Model

Market activity

M&A activity in Switzerland was relatively muted during the first half of 2024 but rebounded strongly in the latter half of the year. Deal volumes remained stable year-on-year, while total deal values rose sharply – primarily due to several high-value strategic transactions in renewables, grid infrastructure, and digital energy systems. Notably, the overall value of Swiss M&A transactions increased from USD72 billion in 2024 to USD115 billion, representing a substantial 60% year-on-year rise. The energy and infrastructure sector maintained its share of deal volume but saw deal value grow by more than 25%.

Inbound transactions accounted for approximately 60% of all deals, underscoring Switzerland's reputation as a safe-haven market amid European volatility. Outbound activity also accelerated, with Swiss companies expanding their renewable energy portfolios across Europe. Domestically, deal activity increased, particularly in the hydropower and digital infrastructure segments.

This positive momentum continued into 2025 but was tempered by the introduction of 39% tariffs on Swiss goods entering the United States, effective 7 August 2025. Despite this challenge, strategic M&A remains central to Switzerland's energy transition, with companies rebalancing portfolios and forming partnerships to manage risk and pursue growth opportunities.

Switzerland's commitment to carbon neutrality by 2050 continues to drive a shift toward renewable energy. This has resulted in increased M&A activity focused on wind, solar, and hydropower assets, as well as emerging technologies such as battery storage and hydrogen. Both local and international market participants are acquiring or partnering with Swiss firms to gain a foothold in the clean energy market.

Recent notable activities in the Swiss electric vehicle (EV) value chain include:

• Shell's investment in EVPass, a charging network;
• Electra's entry into the Swiss market, supported by EUR200 million in financing from Energy Infrastructure Partners and plans to deploy over 600 public charging stations;
• Avia Volt Suisse AG's acquisition of Plug'N Roll, a local provider of electromobility and fleet solutions; and
• Energie 360° Group's acquisition of Move Mobility SA, a public charging station operator.

Utilities are investing in new technologies related to batteries and hydrogen to support the country's energy transition goals and enhance grid reliability. Switzerland's hydropower industry continues to attract investment and consolidation as companies seek to optimise their portfolios. As renewable energy production increases, market players are also investing in energy storage solutions – particularly pumped-storage hydroelectricity and battery storage – to manage the intermittent supply from wind and solar. M&A in energy storage is expected to grow as companies seek to balance supply and demand and improve grid stability.

Switzerland's ageing infrastructure requires significant upgrades in transport, utilities, and digital connectivity. Recent M&A activity has included deals focused on modernising transport and utility infrastructure, supported by both private capital and government initiatives. While modernisation presents substantial investment opportunities, it also brings challenges in integrating new technologies and managing complex logistics. Investors must carefully assess the viability and costs of updating older assets with smart grids, 5G, and fibre-optic networks. These projects often require extensive collaboration with government entities, which can result in bureaucratic hurdles and prolonged negotiations. Looking ahead, further deals are anticipated, especially in digital infrastructure such as data centres, fibre-optic networks, and smart grid technologies. A notable transaction in 2025 was IFM Global Infrastructure Fund's acquisition of Green, one of Switzerland's largest data centre operators, from InfraVia Capital Partners.

Strategic partnerships and joint ventures between Swiss companies and foreign investors, particularly from neighbouring European countries, have become increasingly common. These collaborations often focus on renewable energy and digital infrastructure, with an emphasis on expanding energy efficiency and connectivity within Switzerland and across Europe.

Private equity and institutional investors have also increased their presence in the energy and infrastructure sectors. Attracted by steady, predictable cash flows, several private equity firms have invested in renewable energy and essential infrastructure in Switzerland. Their involvement is expected to grow, with acquisitions aimed at capitalising on Switzerland's infrastructure transition and the rising demand for sustainable energy solutions.

Key drivers in Swiss energy and infrastructure M&A

Energy transition

M&A activity in Switzerland's energy and infrastructure sectors is primarily shaped by four key drivers, often referred to as the "Four Ds" of the energy transition: decarbonisation, digitalisation, decentralisation, and deregulation.

• Decarbonisation – Switzerland's commitment to achieving net-zero emissions by 2050 is a major catalyst for M&A activity. The Swiss CO₂ Act and participation in the Emissions Trading System (ETS) provide a robust framework for carbon pricing and incentivise emission reductions. As a result, companies are proactively acquiring renewable energy assets – including solar, wind, hydropower, and biomass – to align with national climate goals and strengthen their market position.
• Digitalisation – technologies such as artificial intelligence, big data, and predictive analytics are transforming how energy is produced and managed. The adoption of smart systems enables companies to optimise renewable output, reduce inefficiencies, and enhance grid reliability. These advancements are fuelling M&A in digital energy platforms and smart grid technologies, as firms seek to remain competitive in a rapidly evolving sector.
• Decentralisation – Switzerland is moving from centralised power generation to more distributed energy systems. Local energy communities and prosumer (where the consumer and producer are one and the same) models are gaining traction, driving M&A activity in small-scale renewable installations and energy-sharing platforms. This shift empowers consumers and encourages innovation in distributed energy solutions.
• Deregulation – the Swiss Electricity Supply Act is opening the market to greater competition by allowing large consumers to choose their electricity providers. Full market liberalisation is expected to further stimulate M&A by expanding opportunities for new entrants and fostering innovation. Companies are positioning themselves to capitalise on a more dynamic and competitive energy market.

Cross-border M&A and integration

Switzerland's central location in Europe, combined with its integration into the EU electricity market, makes cross-border M&A a strategic priority for Swiss energy and infrastructure companies. Swiss firms are actively acquiring renewable assets and forming partnerships across Europe to participate in energy trading and infrastructure development. This trend is further reinforced by the EU's decarbonisation goals and the growing emphasis on interconnected energy systems.

In addition to energy, Swiss infrastructure investors are expanding into transport and digital infrastructure projects abroad. By leveraging Switzerland's recognised engineering expertise and strong sustainability credentials, these investors are well-positioned to compete for opportunities and drive innovation in international markets.

Sustainability and ESG-driven investments

ESG considerations are at the core of Swiss M&A strategies, with investors increasingly prioritising green assets and technologies that support the energy transition. Financial institutions, pension funds, and private equity firms are systematically integrating ESG criteria into their investment decisions, which is driving sustained demand for sustainable infrastructure and shaping deal activity across the market.

In the construction sector, M&A activity is particularly focused on energy-efficient buildings, smart city initiatives, and sustainable transport solutions. Government incentives and Switzerland's climate neutrality goals are further encouraging private sector investment in green infrastructure, accelerating the shift toward a more sustainably built environment.

Digital infrastructure and smart grids

Switzerland is rapidly advancing the digital transformation of its energy sector. Investments in smart grids, energy management systems, and data centres are fundamentally reshaping how energy is produced, distributed, and consumed. These technologies not only enhance efficiency and grid resilience but also enable greater integration of renewable energy sources.

As a result, M&A activity in digital infrastructure is accelerating, driven by growing demand for cloud services, secure data storage, and advanced energy management solutions. Switzerland's stable regulatory environment and robust data privacy laws further strengthen its position as an attractive hub for data centre investments, encouraging both domestic and international investors to pursue new opportunities in the sector.

Electric mobility and infrastructure investments

The electrification of transport is accelerating M&A activity in the EV infrastructure sector. Companies are acquiring charging networks and smart mobility solutions to meet rapidly rising demand, while public–private partnerships and government incentives are further fuelling this growth. Strategic investment is increasingly focused on smart charging technologies that integrate with the grid and renewable energy sources, supporting the transition to a more sustainable transport system. As the energy and transport sectors continue to converge, M&A activity in EV infrastructure is expected to intensify, creating new opportunities for both established players and new entrants.

Key challenges in Swiss energy and infrastructure M&A

Regulatory and policy uncertainty

Switzerland's regulatory environment is generally business-friendly; however, evolving energy policies and ongoing legislative developments are introducing new uncertainties for M&A transactions. The gradual phase-out of nuclear energy – currently under reconsideration – raises long-term questions about how Switzerland will meet its energy needs during periods of low renewable generation. Additionally, Switzerland's non-EU status requires ongoing alignment with EU energy standards to maintain access to the European energy market. Changes in EU regulations or shifts in Swiss–EU relations, such as the pending ratification of the EU Electricity Agreement, could significantly impact cross-border M&A activity and investor confidence.

Supply chain and material costs

Global supply chain disruptions and rising material costs – exacerbated by geopolitical tensions and recent US tariffs – continue to affect infrastructure projects in Switzerland. Prices for key inputs such as steel, copper, and aluminium remain volatile, which impacts the cost structure and profitability of renewable energy and infrastructure developments. These pressures can complicate deal valuations and reduce project margins. Furthermore, a persistent shortage of skilled labour in the construction and energy sectors is slowing project execution and the integration of acquired assets, potentially dampening M&A momentum.

High valuations and competition for sustainable assets

The global shift toward clean energy and sustainable infrastructure has intensified competition for high-quality assets. Swiss companies now face strong competition from international investors, including private equity and institutional funds, all seeking exposure to renewable energy and digital infrastructure. This heightened demand is driving up valuations, making it more challenging to secure attractive acquisition opportunities. ESG-driven investment strategies are further amplifying competition, as investors increasingly prioritise assets that align with sustainability goals and offer long-term, stable returns.

Regulatory and other developments

2050 Energy Strategy

Following the 2011 Fukushima disaster, Switzerland committed to phasing out nuclear energy. This, combined with global energy shifts and Switzerland's 2015 Paris Agreement pledge to halve greenhouse gas emissions by 2030, prompted a comprehensive overhaul of the national energy system. The Federal Council's 2050 Energy Strategy sets out the following objectives:

• promote renewable energy in Switzerland;
• reduce dependency on imported fossil fuels and ensure supply security;
• reduce energy consumption and emissions;
• increase energy efficiency;
• phase out nuclear energy; and
• achieve net-zero emissions by 2050.

Key focus areas include solar, wind, hydropower, and biomass. Hydropower remains Switzerland's dominant renewable source, accounting for nearly 60% of electricity production. The country's infrastructure includes run-of-the-river, reservoir, and pumped storage systems. Biomass energy – derived from wood, agricultural waste, and biogas – supports decentralised heat and electricity generation as well as waste reduction.

Legislative framework supporting the 2050 Energy Strategy

To implement the 2050 Energy Strategy, Switzerland has enacted or revised several key laws and regulations:

• Swiss Energy Act – promotes efficient energy use and renewable energy development. Key provisions include:
• • support for solar, wind, hydropower, and biomass;
  • incentives for energy-saving measures;
  • subsidies for energy-efficient renovations and renewable installations; and
  • efficiency targets for buildings, industry, and appliances.
• Swiss Electricity Supply Act – ensures a long-term, secure, and environmentally friendly electricity supply. Key elements include market liberalisation for large consumers, non-discriminatory grid access, Swissgrid's mandate for grid reliability, and rules for fair competition and consumer protection.
• Swiss CO₂ Act – targets a 50% reduction in emissions by 2030 (compared to 1990 levels). Measures include a CO₂ tax on fossil fuels and incentives for reduction, participation in international emissions trading, and sector-specific targets for buildings, transport, and industry.
• Swiss Climate and Innovation Act – aims for net-zero emissions by 2050, with interim targets of 75% by 2040 and 89% by 2041–2050. The Act offers financial incentives for climate-friendly technologies and allocates CHF200 million annually for ten years to support innovation.
• SWEET Programme – the Swiss Energy Research for the Energy Transition (SWEET), managed by the Swiss Federal Office of Energy (SFOE), funds interdisciplinary research on energy efficiency, renewables, storage, and grid security. In August 2024, the RECIPE consortium, led by the Federal Institute of Technology (ETH – Swiss abbreviation) Zurich, received funding to assess infrastructure risks and resilience strategies.

Other legislative developments

• EU Electricity Agreement – in March 2024, the Federal Council approved negotiations with the EU on electricity market integration. A comprehensive agreement was concluded in December 2024, liberalising Switzerland's electricity market and aligning regulations with EU standards. The agreement was approved in May 2025, with consultations running until October 2025 and ratification expected in 2026 or 2027.
• Nuclear energy policy shift – in response to the "Electricity for everyone at all times" initiative, the Federal Council proposed an indirect counterproposal to repeal the ban on new nuclear power plants via amendments to the Swiss Nuclear Energy Act. The consultation concluded in April 2025 with input from 262 stakeholders.
• Foreign direct investment (FDI) screening – Switzerland currently lacks a general FDI screening regime but regulates foreign investment in sensitive sectors such as banking, telecoms, and nuclear energy. On 15 December 2023, the Federal Council proposed legislation requiring approval for acquisitions by foreign state-controlled investors in critical infrastructure. In September 2024, the Swiss National Council extended the scope to include non-state investors and essential goods/services. The draft is under review by the Council of States and is expected to take effect in 2026.
• EU AI Act – effective from 1 August 2024, the EU AI Act introduces a risk-based framework for AI systems and applies extraterritorially to Swiss companies operating in or affecting the EU market. Switzerland has opted not to adopt similar legislation but is preparing a regulatory approach aligned with EU and Council of Europe standards. Currently, AI in Switzerland is governed by existing laws on data protection, non-discrimination, and personality rights, supplemented by federal guidelines issued in 2020.

See also 1.1 Energy and Infrastructure M&A Market and 6.1 Significant Court Decisions or Legal Developments in the Switzerland Law and Practice chapter in this Guide.

Outlook

Looking ahead to 2026, several interrelated factors are expected to shape M&A activity in Switzerland's energy and infrastructure sectors.

• Energy transition as a core driver – the ongoing shift toward decarbonisation will remain central to M&A activity. Swiss companies are expected to continue investing in renewable energy projects and divesting from fossil fuel assets, both to comply with Switzerland's climate commitments and to capitalise on growth opportunities. More acquisitions of wind, solar, and hydroelectric assets are anticipated, both domestically and across Europe, as firms align their portfolios with national and EU climate goals. The emergence of new technologies, such as battery storage and hydrogen, will likely create additional deal flow as companies seek to diversify and future-proof their energy mix.
• Digital infrastructure and smart technologies – M&A in digital infrastructure, including data centres, smart grids, and energy management platforms, is expected to accelerate as Switzerland enhances its digital capabilities. Companies will continue to invest in technologies that improve energy efficiency, optimise grid performance, and enable the integration of distributed energy resources. The growing importance of cybersecurity and data privacy may also influence deal structures and due diligence processes.
• Electrification of transport and mobility solutions – the rapid rise of EVs and the corresponding need for charging infrastructure will create new opportunities for M&A in both the transport and energy sectors. Swiss companies are likely to invest in EV charging networks, smart charging solutions, and integrated mobility platforms, positioning themselves for the future of electric mobility and the convergence of energy and transport markets.
• Private equity and institutional investment – private equity firms and institutional investors are expected to play an increasingly prominent role in Swiss infrastructure M&A, particularly in the renewable energy, digital infrastructure, and transport sectors. These investments will be driven by the long-term, stable returns that infrastructure assets provide, as well as the growing demand for sustainable investment opportunities. Competition for high-quality assets is likely to intensify, potentially driving up valuations and increasing the complexity of transactions.
• Policy, regulation, and global trends – the regulatory environment will remain a key factor influencing M&A activity. Ongoing legislative developments, such as the implementation of the EU Electricity Agreement, evolving FDI screening rules, and the impact of the EU AI Act, may affect cross-border transactions and investor confidence. Additionally, global economic conditions, supply chain dynamics, and geopolitical developments could introduce new risks or opportunities for market participants.

Overall, Switzerland's energy and infrastructure sectors are poised for significant growth in M&A activity as the country continues its transition to a low-carbon, digitalised economy. While challenges such as regulatory uncertainty, competition for assets, and market volatility persist, the outlook for 2026 remains positive, supported by sustained investment in renewable energy, digital infrastructure, and electric mobility, as well as a strong commitment to innovation and sustainability.