In an interview with TiAM Fund Research, Klaus Gierling highlights that the energy transition has moved beyond its subsidy-driven infancy and is now underpinned by strong economic fundamentals, with technologies such as solar in Southern Europe often representing the cheapest form of electricity generation even without government support. While climate protection remains a key driver, energy security and geopolitical considerations have become equally important, reinforcing political commitment to electrification and rising power demand. As renewable penetration increases, the focus is shifting from generation alone to grids, storage and system stabilization, creating significant opportunities for specialized investors with deep regional and regulatory expertise. Long-term purchase power agreements (PPAs), such as Capital Dynamics' recent agreement with McDonald's in the UK, re gaining traction as corporates seek price certainty and reliable supply. Gierling emphasizes that infrastructure and renewables offer attractive long-term, stable cash flows suited to private markets structures, and that structural demand - driven by trends such as data centers, AI and green hydrogen - supports sustained growth in power infrastructure. More broadly, he sees a favourable environment for mid-market private equity, where active ownership and operational expertise can help companies navigate transformation, while infrastructure and renewable energy remain core building blocks for resilient, long-term institutional portfolios.
To read the article, please click here (available only in German).