Revamping the US electric grid: an investment imperative

As the global energy transition accelerates, the electricity grid is proving to be a critical bottleneck – and an investment opportunity. UBS Asset Management points to the US, where the aging power grid is struggling to keep pace with the growth of renewable energy, as much of the infrastructure dates back to the 1960s and 1970s.

According to Alex Leung, Head of Research & Strategy, Infrastructure at UBS, beyond direct investment in grid upgrades, there is potential in addressing transmission constraints through energy storage. “These systems can absorb excess renewable energy in congested areas and store it for later use, reducing curtailment and enhancing grid efficiency,” Leung explains. As AI-driven electricity demand and regional grid disparities persist, new investment opportunities arise in both transmission and energy storage.

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