Outlook good for infrastructure as policy makers get on board

As long as there is a constructive policy environment, there is no reason why capital should not continue to be attracted to decarbonisation and energy infrastructure in 2023 according to Premier Miton Investors’ Jim Wright.

“Ultimately, it is just such a crucial area, whether it’s the real estate side reducing energy consumption and increasing energy efficiency, or on the infrastructure side, building out networks and renewable generation assets, all of which push towards electrification and energy transition,” said listed infrastructure fund manager Wright.

“We’re clearly at a pivotal point in markets because we’ve had the pressure of higher gas prices and higher energy prices following Russia’s invasion of Ukraine,” he told Real Asset Insight’s Richard Betts.

He said the current challenge is both mitigating those short-term pressures but also moving into a more aggressive phase of energy transition.

“It’s a real challenge for policy makers but I think we can see a way through so ultimately, talking about Europe, we need to reduce reliance on gas. That means growing infrastructure, growing renewable generation, growing storage and growing grid capacity.”

“All of that will need investment,” he added, “but it is the way out and I think policy makers can see that.”

“Hopefully, 2023 can be a really constructive year for new energy infrastructure.

Please click on the video above to watch the full interview or listen to the podcast below.