Energy transition-related goals and timelines are being recalibrated, but for investors who can take the long view there remains a rich opportunity set.
The tailwind from fiscal stimulus has already helped propel changes. However, politics, regulation, trade policy and legal rulings add uncertainty to the outlook.
The implications of a Trump Administration on utilities companies may be front of mind for many. Risks include opposition to renewables, potentially higher inflation and bond yields, and lower gas prices.
European utilities have posted solid returns over the past six months, so the short-term market reaction to the US election result is not surprising. In the longer term, however, the trend for ‘more of everything’ when it comes to power generation, electricity demand and grid investment sets a more positive tone for utilities.
Renewables remain key to the energy mix
Fossil fuels will, by necessity, likely still play a key role in the global energy mix in the next decade or two. Views on the outlook for the composition of primary energy usage and how that might change over time vary.
Read the full ‘Sponsored Commentary’ article at the link below
