- link Copy URL
- [     Share on X ](https://twitter.com/intent/tweet?text=AllianceBernstein: How to Invest Smarter in the Race for Electrification https://www.3blmedia.com/markdownify/node/1319361?absolute=1&via=3blnews "Share on X")
- [  Share on linkedin ](https://www.linkedin.com/shareArticle?mini=true&url=https://www.3blmedia.com/markdownify/node/1319361?absolute=1 "Share on Linkedin")
- [  Share on facebook ](https://www.facebook.com/sharer/sharer.php?u=https://www.3blmedia.com/markdownify/node/1319361?absolute=1 "Share on Facebook")
- [ email Share via email ](mailto:?subject=AllianceBernstein: How to Invest Smarter in the Race for Electrification&body=News from AllianceBernstein https://www.3blmedia.com/markdownify/node/1319361?absolute=1 "Share via email")
 
 

 [Energy & Infrastructure](/categories/energy-infrastructure)

 # AllianceBernstein: How to Invest Smarter in the Race for Electrification

 


 

 Oct 20, 2026 9:15 AM ET

  Campaign:  [Responsible Investing ](/news/campaign/responsible-investing)  ![Investing Smarter.](https://3blcdn.com/styles/carousel_2x/s3/2026-08/Investing%20Smarter_AllianceBernstein_8.24.26A_1787584727.jpg)

 

[David Wheeler, CFA](https://www.alliancebernstein.com/corporate/en/bio.david-wheeler.html) | Portfolio Manager—Sustainable Climate Solutions; Senior Research Analyst—Sustainable Thematic Equities  
[Ian McNaugher, CFA](https://www.alliancebernstein.com/corporate/en/bio.ian-mcnaugher.html) | Research Coordinator (US) and Senior Research Analyst—Strategic Core Equities  
[Jayme Lisiewski](https://www.alliancebernstein.com/corporate/en/bio.jayme-lisiewski.html)| Senior Research Analyst—Strategic Core  
[Patrick O'Connell, CFA](https://www.alliancebernstein.com/corporate/en/bio.patrick-oconnell.html)| Director—Responsible Investing Portfolio Solutions and Research

## **While opportunities abound across the energy value chain, renewables may come onstream the fastest.** 

As economies become increasingly electrified and power demand grows, the transmission, storage and infrastructure needed to support reliable electricity delivery are evolving. In our view, these trends are creating attractive opportunities across the technologies and infrastructure that underpin the energy transition.

## **Power Needs Are Growing**

[Power needs across the world](https://www.alliancebernstein.com/corporate/en/insights/investment-insights/climate-power-plays-energy-geopolitics-and-the-repricing-of-risk.html) are growing at a pace and scale that will require multiple sources of generation. [Renewable energy projects](https://www.alliancebernstein.com/corporate/en/insights/investment-insights/renewable-energy-could-define-winners-and-losers-in-emerging-markets.html) are set to become a much larger part of the energy mix because of two key advantages: low costs and speed to market. While market and policy conditions may influence deployment in some regions, we believe renewable energy’s long-term growth trajectory remains intact (*Display*).

**Energy Transition Investment Continues to Scale, Led by Clean Power and Grids**  
Global Energy Investment (US Dollars, Trillion)

Image

 ![Invest smarter in the race.](https://3blcdn.com/2026-08/wheeler-mcnaugher-lisiewski-bigley_power-play-how-to-invest-smarter-in-the-race_display-1_d4_1787583887.png)

 



##   
**The Need for Speed**

Speed to market is an important consideration. In the US, for instance, AI is substantially increasing power demand even as older, higher-cost coal-fired power plants are being retired.

Rising power needs have been driving demand not only for renewable energy but also for gas-fired generation, reciprocating gas engines and nuclear power.

Even so, wind and solar are often the most viable additions to the power mix for two reasons. They can come online quickly and, when paired with battery storage, remain cost-competitive with fossil-fuel alternatives even without subsidies.

For instance, because order books for natural gas turbines are sold out for many years, adding fossil-fuel power often takes longer. And while adding battery storage increases the cost per megawatt-hour, it helps make renewable power more reliable. As a result, regulators [may allow data-center projects faster grid connections](https://www.ferc.gov/news-events/news/ferc-launches-aggressive-targeted-action-speed-large-load-integration) if they include on-site battery storage. In addition, equipment costs have fallen to historic lows, and the cost of producing clean power continues to decline globally (*Display*).

**Wind and Solar Have Some of the Lowest Costs of Production** Levelized Cost of Electricity (USA): US Dollar per Megawatt-Hour

Image

 ![Investing smarter](https://3blcdn.com/2026-08/wheeler-mcnaugher-lisiewski-bigley_power-play-how-to-invest-smarter-in-the-race_display-2_d4_1787583986.png)

 



  
All else equal, a loss of US government subsidies for renewables would make gas relatively more attractive. But in our analysis, wind and solar remain viable based solely on economics, and continued robust state and utility spending further supports utility-scale, commercial, industrial and community projects.

Of course, the path to renewable profits and returns hasn’t been smooth. Some renewable-energy developers have been badly hurt by post-COVID interest-rate rises and cost inflation, and even at current share price levels we believe investors should be highly selective in this subsector.

## **Energy Infrastructure Needs Upgrading**

Grid upgrades and reinforcement will be critical to meeting rising power demand (*Display*). In the US and much of the developed world, [grids are approaching or have exceeded their planned life](https://www.alliancebernstein.com/corporate/en/insights/investment-insights/investing-for-security-in-unstable-times-energy-and-supply-chains.html). Yet these aging grids must carry massively increased loads, driven by AI-related power demand and the growing need for resilience against climate, geopolitical and other risks.

**We Believe that Electrification and Grid Resiliency Spend Will Continue to Grow**

Image

 ![We Believe that Electrification and Grid Resiliency Spend Will Continue to Grow](https://3blcdn.com/2026-08/wheeler-mcnaugher-lisiewski-bigley_power-play-how-to-invest-smarter-in-the-race_display-3_d3_1787584058.png)

 



  
Companies such as Prysmian (copper and fiber cables, systems and accessories), Hitachi (cables and transformers), Hubbell (cable distribution) and Schneider (smart-grid solutions that improve grid reliability and flexibility) have benefited from increased grid spending. In many cases, demand remains strong and order backlogs extend several years into the future. In China, Contemporary Amperex Technology (CATL: battery manufacturing) also has a substantial order backlog. Investors will need to be selective, however, as not all component suppliers benefit from the same competitive advantages.

## **Watch Points for Investors** 

Investors should pay particular attention to companies’ operational efficiency metrics and to the regulatory, competitive and market factors that could materially affect potential investments.

Given the global nature of many of these businesses, it’s important to ensure that companies across the supply chain provide adequate data disclosures. Countries outside the US may have stringent sustainability requirements that require companies with supply chains in their jurisdictions to comply with local sustainability regulations. Offenders may face fines and greater difficulty raising capital.

## **Selectivity Is Key**

Some of the early optimism around clean energy companies has dissipated, and certain segments of the market continue to face challenges, [including input cost fluctuations](https://www.mckinsey.com/industries/energy-and-materials/our-insights/tracking-the-energy-transition-where-are-we-now#:~:text=Increasing%20costs,35). That said, the power transition remains underway and continues to create a wide range of opportunities, in our view.

For investors, the keys to success will be thorough analysis and continued vigilance. That means focusing not only on business models and company fundamentals but also on competitive positioning, execution and the long-term trends shaping the energy transition.

**References to specific securities discussed are for illustrative purposes only and are not to be considered recommendations by AllianceBernstein L.P.**

**The views expressed herein do not constitute research, investment advice or trade recommendations, do not necessarily represent the views of all AB portfolio-management teams and are subject to change over time.**

Learn more about AB’s approach to responsibility [here](https://www.alliancebernstein.com/corporate/en/corporate-responsibility.html?syn:pan-emea:brand:3bl:eu942).



 

 

 

 

 

 

 

 [![AllianceBernstein Logo](/sites/default/files/Clients/1625148765913.jpeg)](/profiles/alliancebernstein)

 

 

### More from AllianceBernstein

###### [AllianceBernstein: At the Edge of Insurability: When Wildfire Risk Becomes Investment Risk](/news/alliancebernstein-edge-insurability-when-wildfire-risk-becomes-investment-risk)

 Oct 14, 2026 9:30 AM ET

  



###### [AllianceBernstein - Climate Power Plays: Energy, Geopolitics and the Repricing of Risk](/news/alliancebernstein-climate-power-plays-energy-geopolitics-and-repricing-risk)

 Sep 3, 2026 9:15 AM ET

  



###### [AllianceBernstein - AI Ethics and Regulation: How Investors Can Navigate the Maze](/news/alliancebernstein-ai-ethics-and-regulation-how-investors-can-navigate-maze)

 Aug 26, 2026 9:15 AM ET

  



###### [AllianceBernstein: Renewable Energy Could Define Winners and Losers in Emerging Markets](/news/alliancebernstein-renewable-energy-could-define-winners-and-losers-emerging-markets)

 Aug 18, 2026 10:00 AM ET

  



###### [AllianceBernstein: Conflict on Europe’s Periphery Puts Clean Energy in the Spotlight](/news/alliancebernstein-conflict-europes-periphery-puts-clean-energy-spotlight)

 Aug 12, 2026 9:30 AM ET

  



###### [AllianceBernstein: Carbon Emissions Compliance May Redefine Corporate Strength](/news/alliancebernstein-carbon-emissions-compliance-may-redefine-corporate-strength)

 Aug 6, 2026 10:00 AM ET

  



###### [AllianceBernstein - Stewardship Across Generations: A Stronger Model for Japan’s Boards](/news/alliancebernstein-stewardship-across-generations-stronger-model-japans-boards)

 Jun 2, 2026 8:30 AM ET

  



###### [AllianceBernstein: South Korea’s Rising Governance Tide: How to Ride the Value-Up Wave](/news/alliancebernstein-south-koreas-rising-governance-tide-how-ride-value-wave)

 May 27, 2026 8:30 AM ET