Guinness Sustainable Energy Fund on NextEra Energy
Thesis
The fund owns NextEra Energy for broad wind and solar renewable-generation exposure. The managers describe it as the largest producer of renewable energy in the world and expect rapidly rising electricity demand to require substantial additions of new generation capacity. With renewables among the fastest and lowest-cost sources to build, NextEra is positioned to benefit from the expansion of power supply and associated grid investment.
“NextEra Energy (the largest producer of renewable energy in the world)”
Key risks
- Higher interest rates can pressure capital-intensive utilities and developers
- Interconnection and permitting delays can slow new generation