Schroder: Focus on the technological development and large infrastructure investment opportunities brought by the energy transition.
2024-12-20 14:21
Zhitongcaijing
Schroder believes that in the future energy transformation, energy solutions and infrastructure for low-carbon development will become the focus of investment. Many technologies will be crucial for achieving the global net zero target, and in the long term will bring significant opportunities for complementary investments.
Schroders global investment paper states that various related technologies in the energy transition sector have brought exciting investment opportunities, with the most mature investment approach in this theme being renewable energy generation, especially wind and solar power infrastructure assets. However, there is still not enough focus on investments in these two areas. In addition to power generation, a significant amount of investment is also needed in various related technologies and infrastructure to achieve a low-carbon global economic transformation. The bank believes that in the future energy transition, energy solutions and infrastructure development for low carbon will become the focus of investment, with many technologies being crucial to achieving the global net zero target and bringing significant complementary investment opportunities in the long term.
Schroders global believes that the next generation of energy solutions will focus on three areas: strengthening battery storage, extending investments to co-located and standalone battery storage projects to support renewable energy; enhancing energy efficiency, with a focus on improving energy consumption through smart solutions to enhance energy efficiency in areas such as buildings, industrial processes, and transportation, and investing in energy-efficient transportation solutions to reduce demand-side emissions; and developing clean fuels such as green hydrogen and other alternative solutions.
In terms of infrastructure development paving the way for a low-carbon future, Schroders global suggests focusing on investment opportunities in electric vehicle charging infrastructure as demand for electric vehicles accelerates with the expansion of charging networks. Additionally, there will be a demand for residential and commercial property renovations from decarbonizing heating technologies. Another area of opportunity is in the construction of new power lines and upgrades to existing infrastructure under the development of modernized transmission and distribution systems, as well as the development of interconnectors. Lastly, investments in carbon capture, utilization, and storage technologies are key in industries playing a significant role in reducing CO2 emissions, particularly those industries that are difficult to fully electrify or transition to renewable energy sources.