Schroder: Pay attention to the technological developments and the opportunities for large-scale infrastructure investment brought about by energy transition.

Schroders global investment article stated that various technologies in the field of energy transition have brought exciting investment opportunities. The most mature investment opportunity in this theme is renewable energy generation, especially wind power and CECEP Solar Energy infrastructure assets, but investments focusing on these two areas are still not enough. In addition to generation, achieving a low-carbon global economic transition will require substantial investment in various related technologies and infrastructure. The firm believes that in the future energy transition, energy solutions and infrastructure development paving the way for low carbon will be the focus of investments, with many technologies being crucial in achieving global net zero targets, and in the long term will bring significant complementary investment opportunities. Schroders global believes that the next generation energy solutions will focus on three areas: strengthening battery storage, investing in both grid-connected and standalone battery storage projects to expand systems to support renewable energy; improving energy efficiency, focusing on reducing energy consumption including smart solutions to improve energy efficiency in buildings, industrial processes, transportation, and investing in energy-efficient transportation solutions to reduce emissions on the demand side; and developing clean fuels such as green hydrogen and other alternative solutions. In terms of infrastructure development to pave the way for a low-carbon future, Schroders global suggests focusing on investment opportunities in electric vehicle charging infrastructure, as the expansion of electric vehicles and charging networks accelerates the electrification of transportation. Additionally, there is a demand for residential and commercial property renovations due to decarbonization technologies in heating; modernizing transmission and distribution systems will create opportunities for building new transmission lines, upgrading existing infrastructure, and developing interconnectors; finally, investing in industries such as carbon capture, utilization, and storage technologies will play a key role in reducing carbon dioxide (CO2) emissions, especially in industries that are difficult to fully electrify or transition to renewable energy.