Guinness Sustainable Energy Fund on Prysmian
Thesis
The fund owns Prysmian because high-voltage cables are essential to grid interconnectors and connections to new power-supply sources. The managers expect significant investment in transmission and distribution as electricity demand grows and more renewable generation is added. Prysmian is therefore positioned as a picks-and-shovels beneficiary of the grid build-out rather than a direct bet on one generation technology.
“Prysmian manufactures the cable used in high-voltage interconnectors”
Key risks
- Grid projects can be delayed by permitting and interconnection constraints
- Infrastructure investment may be slower than expected