• Market Insights

Smart Grid: Grid Operators and Energy Suppliers Sector Snapshot

We are pleased to share our latest research, a Sector Snapshot Report on Smart Grids.

This report is the fourth in a series of five, each focusing on a key sub-segment within the Smart Grid sector: (1) Architecture, Engineering and Construction, (2) Hardware and Components, (3) Software and IT, (4) Grid Operators and Energy Suppliers, and (5) Independent Service Providers.

With a focus on the Grid Operators and Energy Suppliers sub-segment, the report covers the following topics and key points:

Smart Grid Definition (across all sub-segments):

  • Digital, self-monitoring grid with automation, real-time control, and two-way energy and data flow

  • Connects renewables, storage, and smart devices to improve efficiency, reliability, and sustainability

Market Size and Overall Growth (across all sub-segments):

  • Market size of USD 60 bn (2024), expected to grow to USD 289 bn by 2034 (CAGR 16.9%)

  • Main Growth Areas: Renewable energy integration, grid automation & digitalization, EV infrastructure, and energy storage

Purpose (Grid Operators and Energy Suppliers):

  • Operate and stabilize the grid while ensuring efficient, real-time electricity supply, demand balancing, and market-based energy trading

Key Customers & Applications (Grid Operators and Energy Suppliers):

  • Residential, commercial, and industrial consumers

Market Structure (Grid Operators and Energy Suppliers):

  • Market dominated by large utilities and TSOs; highly regulated and fragmented across regions

  • EU-driven unbundling separates grid operation from energy supply, with varying implementation across countries

Selected Key Players (Grid Operators and Energy Suppliers):

  • The four TSOs in Germany (Amprion, 50Hertz, TransnetBW, TenneT), large utilities such as RWE, Mainova or Enel Group and DSOs such as Netze BW, Westenergie or e-regio

Transaction Market Dynamics (Grid Operators and Energy Suppliers):

  • Increasing M&A in power plants, utility carve-outs, and digital grid assets, driven by renewable integration and regulatory goals. DERs and EVs push for grid flexibility and digital upgrades

  • Cross-sector M&A expected with digital grid and e-mobility convergence, while regional DSO consolidation boosts smart grid scalability

Please reach out to us if you would like to discuss the sector in more detail or would like to talk about specific transaction opportunities in the space!

Link zum Sector Snapshot (EN)

Christian Berkhoff

Managing Partner/Co-Founder

Christian Berkhoff is Managing Partner at ARGONAS und has more than 20 years of experience in Corporate Finance Advisory und Investment Banking. 

At ARGONAS, Christian leads M&A and financing projects across a broad spectrum of industries, sectors and company situations. Christian’s focus areas are businesses in the Industrial & Automotive and Business Services space as well as complex financing solutions and M&A situations. 

Selected transaction references comprise inter alia the sale of the Siemens subsidiary Symeo to US-listed Analog Devices, the sale of Tecno Plast to Swedish Indutrade Group in the context of a succession solution, the carve-out and sale of a business segment for the international Auria Solutions Group as well as multiple financing and M&A projects for Feuer powertrain. 

Prior to co-founding ARGONAS, Christian inter alia worked for J.P. Morgan in London and Dresdner Kleinwort Wasserstein in Frankfurt, where he predominantly advised multinational corporations and large midmarket companies on structured debt and hybrid capital solutions.

Christian holds a degree in business administration from Goethe-University Frankfurt and a Masters in Finance degree from London Business School.

 

 

Sascha Männel

MANAGING DIRECTOR/CO-FOUNDER

Sascha Männel is Managing Director at ARGONAS and has more than 15 years of experience in the areas of Corporate Finance Advisory and Investment Banking. 

At ARGONAS, Sascha is responsible for deal origination and market analysis and further supports M&A and financing projects across a wide range of industries, sectors and company situations. Sascha’s focus areas are businesses in the Industrial & Automotive, Engineering, Logistics and Packaging space as well as the support of growth companies and special situations. 

Selected transaction references comprise inter alia the sale of the automotive positioning and software specialist Naventik to the Swiss listed semiconductor manufacturer u-blox AG and the sale of vPool Logistics to the Dutch Faber Halbertsma Group (Pooling Partners / PAKI Logistics). 

Before co-founding ARGONAS, Sascha worked for Freitag & Co. in Frankfurt am Main from 2008 to 2009 and for IEG - Investment Banking in Berlin from 2009 to 2012, where he advised medium-sized companies and international groups on mid-market M&A transactions in Germany, Eastern Europe and Turkey. Previously, he worked for Berenberg Bank, E&Y, Freshfields and KPMG in Berlin and Hamburg. 

Sascha holds a degree in business administration at the Bonn-Rhein-Sieg University of Applied Sciences in Sankt Augustin, a degree in business law at the University of Applied Sciences Nordhessen as well an MSc in Global Banking and Finance at the European Business School London (EBS London).