Ninety One’s Sam Segameglio speaks with portfolio manager Graeme Baker about the recent blackouts in Spain and Portugal and what they reveal about the state of Europe’s energy infrastructure.
Rather than undermining the case for clean energy, the incidents underscore the urgent need for smarter planning, greater storage capacity, and much more investment in upgrading the grid to integrate renewables. They also highlight the limitations of Europe’s current ‘energy-only market’ model, where electricity generators are paid only for the power they produce, not for maintaining backup capacity in a ‘capacity market’. This creates challenges for ensuring reliability during periods of high demand or low renewable output.
Find out why this disruption could mark a pivotal moment in the shift toward a more resilient, decarbonised energy system, and what it means for long-term investors.
