2024-05-29 16:49:49 ET
Summary
- Growing investment in global energy infrastructure presents opportunities for differentiated utilities businesses.
- Congestion in the global power grid, particularly with the integration of renewables, poses challenges for renewables infrastructure.
- Clearway Energy has exposure to the industry, but with slack business returns, opportunities may exist elsewhere.
Investment Summary
The so-called “energy transition” means differentiated utilities businesses could potentially benefit from growing investment in global energy infrastructure. The global power grid, in its current form, has many structural problems. This includes, but is not limited to, 1) redundant and maturing infrastructure; and 2) grid congestion, especially with heightened demand for renewables.
The congestion problem is exacerbated by the ever-increasing cointegration of renewables into the grid. This could place additional strains on the current tangible infrastructure in our best estimation....
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For further details see:
Clearway Energy: Turnover On Capital Unable To Pick-Up Exceptional Operating Margins