More renewables are coming - but that's not the interesting bit.

More renewables are coming - but that's not the interesting bit.

As the percentage of renewable electricity generation on the grid increases, the way we store and use electricity will need to change and change dramatically. This will be a massive disruption to the existing system.

Summary: As the percentage of renewable electricity generation on the grid increases, the way we store and use electricity will need to change and change dramatically. This will be a massive disruption to the existing system.

Why this is important: This is our attempt to start to identify where the very real investment opportunities lie in the electricity systems of the future. We start with how you can invest in an electricity grid that enables more renewables to happen. Why? In part because this is where some really interesting investment opportunities can be found. But there is another reason - without these investments in the grid, we will never achieve our renewable targets. It's that simple.

The big theme: As the percentage of renewable electricity generation on the grid increases, the way we store and use electricity will need to change and change dramatically. This will be a massive disruption to the existing system. From an investing perspective, as well as the obvious question as to how big will wind and solar become, there is a much more interesting question - what supporting investments will we need to make to allow the electricity grid to run with a higher percentage of renewables. This is going to be a massive investment theme even if we don't hit 100% renewables.



The details


The renewable electricity known unknowns

I don't know about you, but when I think like an investor (a thought process I find you never lose) I get frustrated by the vagueness of much of the public discussion about decarbonising the electricity system. We see far too many headlines about 2030 net zero targets or a massive growth in wind/solar, and too little of the (boring?) detail of how the electricity grid of the future will actually work.

So, this is our attempt to start to identify where the very real investment opportunities lie. We want to start with how you can invest in an electricity grid that enables more renewables to happen. Why? In part because this is where some really interesting investment opportunities can be found. But there is another reason - without these investments in the grid, we will never achieve our renewable targets. It's that simple.

This blog has mainly US and European examples, simply because we have to start somewhere. In future blogs I will widen out the analysis.

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