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Global Electricity Demand to Double in Next 20 Years, Actis Chairman Says

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Bloomberg Jun 25 09:15 · 10.7k Views

Actis Capital Chairman and Senior Partner Torbjorn Caesar says there remains vast investment opportunity in the energy transition space as global electricity demand is expected to double in the next two decades. He spoke to Bloomberg's Tom Mackenzie on "The Pulse with Francine Lacqua" on Bloomberg TV.

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Transcript

  • 00:00 So here in the UK, energy
  • 00:01 or UAI is expected to suck up about 500 percent, 500% more energy over the next decade.
  • 00:07 In the US, data centers expected to make up 8% of the total
  • 00:11 energy
  • 00:11 needs in the US versus 3% from 2 years ago.
  • 00:15 So the demand is going to be excessive.
  • 00:18 How do you think the industry meets that demand?
  • 00:19 And to what extent is that an opportunity for you?
  • 00:21 I mean, it is, it is a massive opportunity, but it's part of the same picture in terms of growth.
  • 00:26 I mean, if you're looking at the growth,
  • 00:27 it's on a global basis and looking at the next like 20 years, I mean, the electricity demand will somehow double,
  • 00:33 double.
  • 00:34 So we need to build another planet, the power plants and all the associated
  • 00:38 feasible in this environment.
  • 00:39 Yeah, I think so.
  • 00:40 But I mean, but it's a massive, you know, investment challenge and opportunity.
  • 00:43 But,
  • 00:44 but if you think about that and then saying that the electricity system, you know, everything from generation, transmission and distribution, that's humankind's largest investment ever.
  • 00:52 And now we're going to do that over the next, say, 20 years again.
  • 00:55 And on top of that, the existing planet needs to be decarbonized.
  • 00:59 So if you add those up, I mean, it's just almost mind boggling top of a size of numbers that that are there.
  • 01:05 So the question, you know, will all of that come through?
  • 01:07 What is the pace?
  • 01:08 But you know, if it comes in, in the pace that, you know, you, you forecast or not, it doesn't really matter because opportunities that are that,
  • 01:15 you know, huge.
  • 01:17 And in that, as you say, the, the
  • 01:19 AI,
  • 01:20 you know, is going to pay
  • 01:21 playing, you know, very important role of that growth.
  • 01:23 National governments post pandemic, fiscally constrained budgets are under pressure.
  • 01:27 Is that a challenge for you because you need to align with public spending or is it an opportunity?
  • 01:31 It's clearly an opportunity.
  • 01:32 I mean, if you're in the,
  • 01:33 the markets, I mean across Latin America, Africa, Middle East, Eastern Europe, you know, Asia where we we invest
  • 01:39 and governments, I mean the priorities of their spending.
  • 01:42 If private capital is available to help out and invest into
  • 01:46 the electricity sector and help out, you know, in the energy transition on getting renewables in the clean greener energy, I mean it's great.
  • 01:53 So it's a win, win from both sides.