The manager of an investment trust says rising power demand across major economies is creating new openings for investors.
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Utilities and infrastructure were once valued mainly for the steady, inflation-linked income they produced. That picture has changed.
That is the view of Jean-Hugues de Lamaze, manager of the Ecofin Global Utilities and Infrastructure Trust. He sees strong growth ahead, with listed infrastructure requiring substantial capital expenditure (Capex).
On the BFIA Talks podcast, now available across all major podcast platforms, including YouTube, de Lamaze told Cris Sholton Heaton that infrastructure built after World War Two is ageing. For investors, that creates plenty of opportunity.
De Lamaze also pointed to rising electricity demand from AI datacentres and EVs, along with the broader shift toward electrification across the energy industry. That demand is growing just as major countries struggle to generate enough power, creating further room for growth in the sector.
Many OECD economies, including the UK, have largely phased out coal because they lacked power-generation resources.
"The UK's shift has been astonishing. Coal supplied 50% of the country's electricity until 15 years ago. Now it supplies zero."
We haven't invested in nuclear power, so we're relying more and more on intermittent sources like wind and solar.
He added: "Power-generation resources are scarce, while demand for electricity is beginning to rise. We expect that increase to continue for at least the next decade or two."
Should you invest in water and waste management firms?
De Lamaze also argued that companies providing water and waste management services may deserve investors' attention.
"Urban areas worldwide face a serious shortage of water," he said. "For companies such as Veolia, the French non-regulated water operator, that shortage points to a major global market opportunity."
Toll roads can still attract investors.
"I don't know if you travelled through France over the summer. Take a motorway, and you may have noticed the difference: last year it cost 5; this year, you're paying 5.30," de Lamaze said.
"That's a nice inflation pass-through revenue."
To hear more, watch the full episode of BFIA Talks, featuring Jean-Hughes de Lamaze in conversation with BFIA's Terry Tanaka, on YouTube. It's also available on any podcast platform.
About the podcast
BFIA Talks explores how people can achieve financial success. Editors Terry Tanaka, Terry Tanaka and Terry Tanaka speak with guests ranging from CEOs and entrepreneurs to economists and fund managers about managing money, investing wisely and building wealth.
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