A worker wearing a protective mask assembles truck transmissions at the Eaton Corp. manufacturing facility in San Luis Potosi, Mexico, on Wednesday, May 27, 2020.
Mauricio Palos | Bloomberg | Getty Images
The proliferation of renewables and the rising use of electric cars will demand further investment in the electric grid – and could create a potential tailwind for several industrial companies, said Morgan Stanley.
The firm estimates that the electrical grids in the U.S. and Europe will need an additional infusion of more than $500 billion through 2040, making it an “overlooked” investment opportunity.
“The roll-out of renewables + increase of EV adoption is now in full swing. But the success of this Green Transition risks being undermined by current spending plans on the Electrical Grid coming up short,” the firm wrote in a recent note to clients.