The transition to renewable-generated power is happening all around us, but as the pace of transition from fossil fuels to renewables accelerates, the infrastructure needed to support these new sources of energy is sorely lagging behind. This is creating both opportunities and challenges for investors.
“We are only at the beginning of the renewable transition,” says Julien Bedin, lead infrastructure investment researcher with Partners Group, a global private markets firm. Bedin notes that wind and solar account for only 9 percent of global power supply today but will increase to 56 percent by 2050. And this will happen not only for environmental or policy reasons, but economic, as well.
According to Wood Mackenzie’s recent report, Total Eclipse: How falling costs will secure solar’s dominance in power, solar has already become the least expensive option for adding power in all U.S. states, Canada, China and many other countries. And the cost is expecte