Strategic competition in the energy system is entering a new era, in BlackRock's view it is no longer confined to hydrocarbons, as global competition in AI and low-carbon technologies intensifies.
A resurgence of industrial and trade policies supporting domestic companies has led to economic distortions, like an oversupply of batteries, solar cells and electric vehicles. Lower prices, driven by these policies, are spurring adoption but eroding profitability – except in shielded markets like the US solar sector. These approaches are set to drive greater return dispersion.
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