The Dalmore Infrastructure Series – The Investable Transition

Dalmore Capital - Blog Author

By Dalmore Capital

CIO Alistair Ray argues that the energy transition will happen at the speed of economics, and that this is good news for infrastructure investors.

Some highlights:

  • The scale: Around £50 billion a year of UK investment is needed by 2030 and most of it has to come from private capital.
  • The evidence: Where the economics work, as with offshore wind, EVs and solar, deployment has beaten forecasts. Where policy has relied on subsidy, it has stalled.
  • The limit of subsidy: Subsidy can catalyse the transition, but it can’t carry it. Revenues that depend on political goodwill carry a risk that markets underprice.
  • The Dalmore test: Two questions that separate sound infrastructure from policy speculation.
  • The opportunity: The tests reveals a wider opportunity set than renewables alone, including networks, storage, industrial decarbonisation and adaption.

Read more about the new piece here: The Dalmore Infrastructure Series – The Investable Transition

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