Emboldened BlackRock pursues another utility acquisition with AES deal
March 3, 2026
BlackRock, EQT deal adds risks of consumer rate increases, delayed transition from fossil fuels
A consortium led by BlackRock and EQT, alongside the California Public Employees’ Retirement System and the Qatar Investment Authority, has announced a $10.7 billion bid to acquire AES Corporation—marking another major private equity move into regulated utilities just months after BlackRock acquired ALLETE and Minnesota Power.
“It appears that Minnesota Power was just the beginning of private equity’s mad dash into utilities, just as we warned,” said Nichole Heil, Senior Researcher at the Private Equity Stakeholder Project. “As BlackRock and other private equity investors treat our essential utilities like a gold mine, consumers and our climate are left paying the price. Regulators should draw a hard line before the risks to ratepayers, workers, and the clean energy transition become reality.”
As PESP previously warned in its analysis of BlackRock’s Minnesota bid, without strong oversight, growing dominance by asset managers could mean higher bills, less transparency, and utilities run to maximize investor returns instead of serving communities. AES touts the deal as providing the utility with improved access to capital, yet as PESP testified regarding BlackRock’s takeover of ALLETE, the fund BlackRock is proposing to use to acquire AES is targeting an annual gross return of 15-20%, significantly higher than the return (10.99%) that publicly-traded US utilities have generated over the past decade.
AES operates utilities in Indiana, Ohio, and El Salvador, as well as power plants in Puerto Rico, Dominican Republic, Chile, Panama, US, Argentina, Mexico, Vietnam, Jordan, and Bulgaria. Its operations in Indiana are through AES Indiana, and lawmakers there have raised concerns about private equity ownership. State Rep. Cherrish Pryor said, “For years, AES customers have battled skyrocketing prices and declining service… Selling to private equity will only make it worse.”
Earlier this legislative session, Rep. Pryor introduced an amendment that would have required regulatory approval before a public utility could sell, transfer, or reorganize control. The amendment did not advance.
Beyond ratepayer concerns, the AES transaction would significantly expand fossil fuel holdings for both BlackRock and EQT.
While AES has invested in renewable power generation, it also owns and/or operates at least 26 fossil fuel–fired power plants in several countries generating approximately 14,800 megawatts of power. If completed, the deal would more than double BlackRock’s fossil fuel power plant portfolio to over 50 plants across 11 countries. When BlackRock acquired ALLETE and Minnesota Power last year, it bought a coal mine and a coal-fired power plant. The proposed AES acquisition would add seven more coal power plants to BlackRock’s portfolio, as well as two pet coke-fired power plants, seven gas/diesel power plants, and ten gas power plants.
The acquisition would also materially increase EQT’s fossil fuel exposure. Between 2025 and 2026, the share of fossil fuel companies in EQT’s energy portfolio rose from roughly 14 percent to 40 percent. An AES acquisition would add at least 26 fossil fuel power plants to EQT’s holdings, a 289% increase.
“With the proposed AES buyout, BlackRock and EQT are acquiring substantial fossil fuel generation,” PESP’s Heil said.
PESP’s research has found that private market energy transition narratives often emphasize renewable assets without fully disclosing the scale of fossil generation that remains in portfolios, or outlining how those assets will be transitioned or retired over time.
