The International Energy Agency (IEA) report published this week revealed that a growing volume of renewable energy generation is being stalled as developers wait for projects to be connected to national electricity grids.
Since the report's release on Monday, share prices of companies engaged in building electric grids, or with products and services tied to grid modernisation, have outperformed firms that are focused on renewable energy generation.
The share prices of certain firms that hold these particular skill or product sets have seen signs of heightened buying interest this week since the IEA report was published, indicating that some investors may be already placing bets that grid specialist firms may be primed for growth going forward.
Germany's E.ON (EONGn.DE), which has a major energy networks division, is up roughly 17% this year, LSEG data shows.
Firms that develop smart meters and other grid management tools are also expected to see growth in demand for their services by power companies.
Persons:
Lisi Niesner, Gavin Maguire, Muralikumar
Organizations:
REUTERS, International Energy Agency, IEA, FOCUS, Mastec Inc, U.S, Fluor Corp, Eaton Corporation, E.ON, Reuters, Thomson
Locations:
Weselitz, Germany, LITTLETON , Colorado, U.S, Ireland