Smart Grid Infrastructure "GRID"

Driving the energy transition through the application of the Smart Grid & the electrification of everything 

Overview of Theme

Electrification is pivotal to the energy transition and unsurprisingly it’s coursing ahead. Although in theory, electricity can be generated by both fossil fuels and renewable energy sources, in practice renewable energy will be driving the electrification effort. Electricity demand is forecast to more than double between now and 2050, and renewables will outcompete all other sources of power, with the share of renewable energy in the power mix set to increase from 8% to 69% by 2050.

The smart grid has an important role to play in the energy transition, promising to help our conversion to renewable energy sources, reduce demand and moderate the impact of power outages by enabling automatic rerouting of electricity across the grid. This innovation will help both consumers and companies alike to generate their own energy supply through solar and microgrids, which could make it available for others to buy, or be made available to store for future use.

Our Smart Grid strategy offers thematic investors an efficient solution based on a well-researched, disciplined and transparent index methodology. Our strategy provides investors with pure play access to the smart grid and electric infrastructure sector. The index includes companies listed globally that are primarily engaged and involved in electric grid; electric meters, devices, and networks; energy storage and management; and enabling software used by the smart grid and electric infrastructure sector.


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Theme Characteristics

DIGITALISATION  

This trend is not only driven by rising consumer demand for a more digitalised electrical grid but emerging smart grids are also made possible by innovations across big data, AI, distributed energy resources (DER) facilitating the digitalisation of the electric grid.

ENERGY TRANSITION

The energy transition is accelerating and we believe climate-aware investments in the energy transition and smart grid infrastructure are poised to benefit from this paradigm shift. In our opinion, the market for clean energy and smart grid infrastructure is still at the beginning of its long-term growth potential.



ELECTRIFICATION OF EVERYTHING

What is meant by the ‘electrification of everything’? Put simply: that most of the energy we use will come from an electric socket. If you’ve been caught without power at any point in recent years you’ll be all too aware that much of what we rely on in everyday life is powered by electricity. Electrification is happening whether or not we’ve made an active decision to ‘electrify’. 

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Smart Grid Outlook: The Electrification of Everything

What is the Smart Grid? Why is it important? And is this a good potential area for investment? Produced in conjunction with Ron Pernick, Managing Director of Clean Edge we showcase the key trends which are driving this theme. 

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