Equity capital markets (ECM) volumes in the energy and utilities sector has had its best year in a decade in 2025, driven by strategic primary raises from businesses needing to modernise infrastructure or defend against geopolitical turbulence

Volumes in the segment have surged to USD 34bn from 54 deals, up sharply from USD 10.8bn across 43 deals in 2024 and exceeding the previous peak of around USD 20bn from 113 deals in 2021.

This year’s tally is roughly three times the 2024 total and well above the last decade’s high.

The strength of the year has hinged on a handful of stellar follow on transactions—totalling USD 33.4bn—tapping deep investor demand for capital to fund capex and growth.

At the top end, Orsted’s rights issue raised around USD 9.4bn, attracting broad participation from cornerstone holders including the Danish state and strategic investors with take-up exceeding 99%.

Ørsted’s raise was driven by balance sheet pressure and renewed uncertainty around US offshore wind policy under US President Donald Trump’s administration.

A USD 5.9bn block trade from Spain’s Iberdrola, meanwhile, added another multi-billion-dollar primary raise to the tally, illustrating both the scale and diversity of energy and utilities activity.

Market participants in the sector say the driver is straightforward. An ECM banker noted that utility and energy deal flow this year was “much of activity was driven by capex. If you look at the deals that came, utilities like Iberdrola tapped the equity markets specifically to fund grid investment.”

That view was echoed by a second ECM banker: “On the primary side, energy and utilities are driving raises supported by an active M&A environment.”

In some cases, the rationale has been strategic rather than opportunistic. For example, SSE plc’s GBP 2.0bn (USD 2.6bn) block trade was linked to funding its GBP 33bn five-year investment programme, focused on regulated networks and renewables.

A third ECM banker pointed to the breadth of issuers in the space and to demand remaining strong even where the reasons to raise were unique.

“Investors are there and can deploy capital, and we should expect to see more issuance. These are not opportunistic deals,” the banker added.

The Orsted rights issue typifies this year’s pattern of deep engagement from long-term shareholders, roughly one-third of the free float participated in the offer.

Market participants say investors understand the need for capital in energy transition assets and traditional utilities alike.

“The demand is there, and investors clearly understand the need for capital,” added the first ECM banker, who expects further issuance from large names. This positive backdrop sits alongside robust M&A pipelines in the sector, reinforcing issuers’ willingness to access equity.

ECM figures for 2025 also underscore a broader resilience in European markets after a choppy macro backdrop. Following volatility earlier in the year, the rebound in issuance and participation underlines that, where risk–reward profiles are clear and strategic, institutional capital remains ready to engage.

With capex cycles running hot in power networks, renewables build-outs and energy transition projects, 2026 is likely to see continued flow from the utilities and energy patch, anchored by further primary raises alongside ongoing M&A-related equity needs.

The challenge for bankers will be pacing this issuance without saturating investor appetite, but for now the energy and utilities ECM story is one of strategic demand meeting deep pockets.