STORAGE: IMPACTS OF DISRUPTION ON THE CORE INFRASTRUCTURE INVESTOR
Disruption threatens all investors. Every industry and sector faces disruption risks from new technologies, competitors, politics and regulations.
We believe that core infrastructure investments are relatively less vulnerable to disruption because they are grounded in long-life physical assets that provide essential services. Nevertheless, they are not immune. Investors should consider the potential for disruptive changes in every underwriting, both for the individual asset and for the broader portfolio. As always, a diversified portfolio is central to mitigating downside risk.
In this publication, we explore the potential disruption of the power industry by renewable energy and battery storage—and the risks and opportunities they present to infrastructure investors.
Investment backdrop: current power industry trends
Vulnerable to disruption from lower-cost renewable energy
Likely beneficiaries of disruption from lower-cost renewable energy
Vulnerable to disruption from low-cost batteries
Likely beneficiaries of disruption from low-cost batteries
Prospects for distributed generation
The outlook for electric vehicles