KBI Global Investors on turning recent market dislocation into a potential investment theme
23 FEB, 2026
By Joanna Piwko from RankiaPro Europe
A natural resources specialist says the global energy transition could present long-term opportunities through to 2050.
Global investment in energy transition technologies continues to rise, reaching a record $2.3 trillion in 2025. While the long-term structural drivers behind this transformation remain intact, the sector has faced notable headwinds in recent years, including higher capital costs, supply chain disruptions, and uncertainty surrounding US clean energy policy. However, with policy visibility improving and investor sentiment stabilising, some market participants are beginning to re-engage.
Dublin-based KBI Global Investors, which has managed energy transition strategies for 25 years, believes the volatility and dislocation seen in recent years may be creating selective long-term opportunities within the theme.
“The structural drivers behind the energy transition were first identified decades ago, and we believe they continue to strengthen,” says Andros Florides, Senior Portfolio Manager at the firm. He points to rising global energy demand, declining renewable energy costs, increased focus on energy security, and the need to meet climate targets as key forces shaping the outlook.
Rising electricity demand
Electricity consumption is increasing rapidly, driven by industrial expansion, electrification of transport and heating, and growing demand from data centres and artificial intelligence. Global electricity demand rose by 4.3% in 2024, and forecasts suggest annual growth of close to 4% through 2027.
Over the next three years, global consumption is projected to increase by approximately 3,500 TWh — equivalent to adding more than Japan’s annual electricity usage to global demand.
At the same time, grid infrastructure investment has lagged. The International Energy Agency estimates that 80 million kilometres of power lines will need to be added or replaced by 2040 — roughly equal to the entire length of today’s global grid — to meet national climate and energy goals.
Declining renewable costs
According to the International Renewable Energy Agency, 91% of newly commissioned renewable energy projects are now cheaper than new fossil fuel alternatives. Solar and wind are among the most cost-competitive and scalable energy sources, and renewables accounted for 92.5% of new capacity additions in 2024, as well as 74% of electricity generation growth.
Industry observers suggest the sector may have reached a tipping point, supported by ongoing technological innovation and economies of scale.
Energy security considerations
Approximately 74% of the global population lives in countries that are net importers of fossil fuels, exposing them to price volatility, supply disruptions, and geopolitical risk. The expansion of domestic renewable energy capacity is increasingly viewed as a way to enhance energy resilience, particularly as extreme weather events and ageing infrastructure put pressure on existing systems.
Decarbonisation and innovation
The global push toward net-zero emissions by 2050 remains a significant policy and investment driver. The European Union, China and major private-sector players continue to allocate capital to clean energy technologies.
Advances in battery storage are also accelerating. Improvements in energy density and cost reductions are enhancing the integration of renewable power into electricity grids. For example, a standard 20-foot battery storage unit that previously delivered 3–4 MWh can now typically provide 5–6 MWh, with some manufacturers developing systems capable of delivering up to 10 MWh.
Outlook
According to KBIGI, these developments are creating a broad range of potential investment themes across the energy transition landscape. While risks remain, long-term structural drivers — including electrification, decarbonisation, and technological innovation — continue to shape capital allocation decisions.
Florides notes that thematic investors often focus on enduring structural trends that may influence markets over extended time horizons. With 25 years of experience managing clean-energy strategies, the firm says it is closely monitoring how the transition toward 2050 unfolds.
