In past years, only State governments or very large multinational firms, had the wherewithal to build and own utilities such as electricity and water.
This model is being broken down by the introduction of micro grids. Western Australia is a good example of that happening.
As the number of micro grids increases, the reliance on State governments and large multinational companies to finance these types of infrastructure will decrease.
Microgrid projects will range from the very small to the very large, but nowhere near the size of the grids that evolved last century.
The financing of the smallest micro grids could be in the hands of only a single investor (i.e. homeowner with solar power and storage), to larger ones where several homeowners, farmers or businesses join forces to create their own micro grid.
No doubt the number of investment funds allowing access to this type of investment will increase.
When that happens, the growth of the micro grid industry will take off.
CWE Price at posting:
4.0¢ Sentiment: Buy Disclosure: Held
