Over the next 20 years, trillions of dollars are likely to be spent modernizing the global electric grid to accommodate increased “electrification” and the growing dominance of renewable energy sources.
We believe regulated electric utilities are an underrecognized way to invest in the energy transition and can be attractive investments due to their high growth potential and stable return profile. With relative valuations recently at 15-year lows, we think electric utility stocks look particularly attractive versus the broader equity market in today’s environment.
Capitalizing on the energy transition
As the world shifts toward a low-carbon economy to stem the effects of climate change, decarbonizing the global energy sector will be critical. The clean energy, clean transport, and electricity sectors may experience unprecedented…