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The strategic value of robust due diligence
The UK renewable energy market is experiencing a period of recalibration. Recent policy shifts such as those in grid reform and planning in England are causing organisations to re-evaluate their acquisition strategies, and how they consider the projects available in the market.
They are asking themselves how it will impact transactional costs, will it cause a over saturated marketplace, will more bids fail and how will they support the buy-side process and ensure they are getting the right advice?
Across PV, onshore wind and BESS there are estimated to be around 900 projects that are at development stages that mean they could be available for transaction over the next 1-2 years. With a pool of roughly 200 developers and investors actively buying or selling projects in the UK, this makes for a busy transactional marketplace.
Those organisations looking to acquire projects have different aims depending on their overall strategy and the specific project opportunity, but typically this is either to add value and flip projects, or optimise for long-term ownership. In this environment, effective due diligence is not simply a risk mitigation tool, it is a primary mechanism for understanding the specific project value.
Several converging factors are driving this current uplift in transactional activity:
- Grid availability and consenting bottlenecks are pushing buyers to prioritise assets that are ready to build (especially with 2026/27 grid connection dates) or have navigable pathways for consent. This also creates a limited pool of viable projects.
- Developers are acquiring earlier-stage opportunities, aiming to control risk and secure pipeline positions further up the value chain. This means a wider pool of bidders on some project types.
- Mature assets are also being being re-evaluated for life extension or repowering, providing a viable route to enhanced performance or site re-use for some of the best historical sites across the UK. There are nearly 100 wind sites across the UK that are 20+ years old, and each needs to be considered for their end of life opportunities.
These are causing some fundamental shifts in the types of projects that are being bought and sold, and the stages at which they are being exchanged. For example, the CP30 grid reform process has effectively put a cap on the upper capacity for availability of certain technology types (specifically BESS projects), so only those with secured grid queue connection dates are seen to have significant value. This means there is a spike in this type of project being exchanged, where there are buyers with the ability to deliver them in time and realise their value.
However, this marketplace is highly competitive, and other buyers are also positioning themselves to secure the best opportunities. This requires fast, confident decision-making. That, in turn, depends on high-quality, commercially attuned awareness of the specific risks and opportunities in any given project, for a specific client and its risk appetite and business strategy.
Common barriers
Our experience across hundreds of buyers and lenders transactions has revealed consistent barriers that can delay or derail projects:
- Legacy planning issues, such as challenging condition discharges, short remaining consent periods or outdated design layouts for current affordable buildability.
- Grid connection risks, including non-viable connection offers or overlooked constraints
- Land-related uncertainties, including missing wayleaves, restrictive covenants or lease misalignments
- Poor-quality technical data, making it difficult to assess yield or performance assumptions
Identifying these risks early enables structured mitigation, informed negotiation, and faster decision cycles.
Locogen’s due diligence services are designed to meet these evolving needs. We provide:
- A dedicated team with direct experience of development drivers with Project Managers who focus on bid price
- Rapid assessment of project viability, tailored to transaction timelines
- Detailed technical, consenting, and grid reviews, led by sector specialists
- Constructability insights, grounded in real-world delivery experience
- Market-aware risk evaluation, enabling commercial decision-making with clarity
- A scalable process, tailored to specific transactions, with exit points to reduce abortive costs
- Screening process to help prioritise portfolios
- Clear tabular advice and inputs to financial models
Through our decade-long experience in operating challenging assets, we are often engaged to assess projects that may appear straightforward on paper but are often complex in execution. Our multi-disciplinary teams understand both the operational and regulatory context, providing balanced appraisals for single projects or full portfolios, across the full range of development stages.
Typical client outcomes
Organisations engaging Locogen for due diligence typically achieve the following:
- Faster transaction decisions, driven by targeted risk identification
- Reduced exposure to unforeseen technical or commercial issues meaning clearer understanding of the risks
Informed insight to enable decisions
As the UK renewables market becomes more complex and more competitive, the cost of unforeseen or under-analysed issues increases. Whether acquiring, divesting, or repositioning, stakeholders need reliable insight. This is not just providing red flags, but providing informed recommendations aligned to delivery realities so proportionate decisions can be made.
At Locogen, we deliver due diligence that supports action. If your team is assessing new opportunities or looking to manage risk within a portfolio, please contact us at [email protected].
