Finding the winners from new technology
A revolution happening in the energy industry and there will be winners (and losers). That’s the word according to AMP Capital Head of Investment Strategy and Chief Economist Shane Oliver.
“The massive reduction in the cost of generating sustainable energy, together with energy that can be stored in batteries as battery technology evolves… is revolutionising things,” says Oliver.
The rise and rise of sustainable energy sources such as solar and wind power, plus the dramatic improvements in how to store that energy in battery form, represents a massive shift from just a decade ago, when all the talk was around peak oil.
The big winners of the move toward “electrific-sation” will include the companies that generate sustainable sources of electric power, as well as electric car manufacturers, and of course companies involved in the storage of energy.
This is good news for Australia as the country is a large global supplier of lithium, a major component in these batteries.
“There will be losers here too; those reliant on the old technology,” says Oliver. “But there is going to be big winners as well, and investors need to get their minds around that.”
About the Author Dr Shane Oliver, Head of Investment Strategy and Economics and Chief Economist at AMP Capital is responsible for AMP Capital’s diversified investment funds. He also provides economic forecasts and analysis of key variables and issues affecting, or likely to affect, all asset markets.
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