Deep Decarbonisation of Energy Systems 

This report examines the pivotal shift towards decarbonisation in the global energy landscape, emphasising the growing importance of diversified portfolios for investors. With the energy transition accelerating due to the climate crisis and energy security risks, there's opportunities abound across renewable energy, energy storage, and grid interconnections, particularly in Australia, Europe, and the UK.

In 2023, global investment in the energy transition reached a record $1.8 trillion, with significant capital allocated to power generation and grid infrastructure. However, to achieve net-zero targets, $79 trillion in supply-side investment will be required by 2050, with $21.4 trillion needed for grid development alone.

The report highlights the necessity for greater private institutional investor participation to meet the growing demand. By building a well-diversified energy infrastructure portfolio - incorporating complementary risk and return profiles - investors could enhance risk mitigation across both short and long-term horizons. Furthermore, deploying capital into storage and grid assets alongside renewable energy generation is essential to maintain system flexibility and reliability as the penetration of renewables increases.

The future of global energy systems will be characterised by greater complexity, where success relies on the seamless integration of diverse components. As these systems become increasingly interconnected, understanding their interdependencies has never been more important.

How do we prepare for a future that is not only diverse with its energy offerings but resilient and adaptable? Read the report to find out.