Talking Point  

What the energy crisis means for investments

What the energy crisis means for investments

The energy crisis is accelerating the rollout of renewable projects, but more needs to be done to ensure regulation does not hinder the progress, according to guests on the latest FTAdviser podcast.

Felix Odey, portfolio manager – global resource equities at Schroders, said: “[With regasification for example] this used to take three years. Similarly to what we saw during Covid with vaccines, when the incentive is there, we are seeing some of these projects being done in nine months.

“You are seeing a much faster response. The crisis is being taken seriously and you are getting the market response as well."

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But Odey added that with the scale of the need, governments are realising that they have been holding themselves back and regulation has not caught up.

“You have projects ready to go but they are not being sanctioned because they cannot get to the grid or regulation is stopping them from being built," he said.

“The economic argument [for renewable energy buildout] has never been stronger."

Alena Kosava, head of investment research at AJ Bell, said: “We are entering this year with huge uncertainty in geopolitics. Given the importance of energy security, this is a long-term theme... we will need a viable plan to get there.”

To find out more about what the energy crisis means for investments and the transition to green energy, listen to the podcast above.