Electricity in the U.S. is a hot topic that keeps intensifying month after month. We are talking about record levels after record levels , asWith a degree in Finance and Accounting and previous experience in financial advisory, I use The Sharpe Quest to share my path as an independent investor and market analyst. My approach mixes long-term conviction holdings with tactical sector rotations, driven by the belief that investing isn’t about being right, it’s about making money. I focus on undercovered opportu ...

Core Viewpoint - Origin Energy exceeded first-half profit estimates, driven by strong performance in its Energy Markets division, leading to an upward revision of its full-year earnings forecast [1] Group 1: Financial Performance - The Energy Markets division reported operating earnings of A$860 million ($613 million) for the six months ending December 31, marking a 17% increase from the previous year [1] - The company raised its full-year operating earnings forecast to between A$1.55 billion and A$1.75 billion, up from a prior range of A$1.4 billion to A$1.7 billion, with the midpoint surpassing the Visible Alpha consensus of A$1.62 billion [1] - Origin Energy's first-half underlying profit was A$593 million, exceeding the Visible Alpha consensus estimate of A$577.9 million, compared to an underlying profit of A$924 million in the previous year [1] Group 2: Division Performance - Operating earnings in the Integrated Gas division fell by over 31% to A$860 million due to weaker realized prices and lower production [1] - The strong performance of the Energy Markets division was pivotal in supporting the overall profit results for the company [1] Group 3: Dividend Announcement - The company declared an interim dividend of 30 Australian cents per share, consistent with the prior year [1]

Core Viewpoint - The article discusses the implementation of a unified national electricity market system in China, aiming for completion by 2035, with significant milestones set for 2030 [1][2]. Group 1: Goals and Implementation - By 2030, the goal is to establish a basic unified electricity market system where all types of power sources and non-essential users participate directly, with market transactions accounting for approximately 70% of total electricity consumption [1]. - By 2035, the complete establishment of the unified electricity market system is expected, with further maturation of market functions and a steady increase in the proportion of market transactions [1]. Group 2: Innovations and Participation - The implementation plan emphasizes enhancing cross-provincial and cross-regional electricity trading systems, increasing the scale of transmission and the proportion of clean energy [2]. - The plan encourages greater participation from private enterprises in the electricity market and aims to refine the pricing mechanism based on supply and demand, prohibiting local governments from offering illegal preferential pricing [2]. Group 3: Progress and Achievements - As of the end of 2025, market-based electricity transactions are projected to reach 6.6 trillion kilowatt-hours, a sevenfold increase from 2015, with market transactions comprising 64% of total electricity consumption [3]. - The market structure has begun to take shape, with all commercial users and a significant portion of various power generation sources participating in the market [3]. - The number of registered market participants has exceeded 1.09 million, a 22-fold increase since 2015, indicating a robust growth in the electricity trading sector [3].

Core Insights - Infrastructure spending is currently a key driver of growth trends in global equities, with a focus on digital infrastructure providers like Equinix Inc. [1] - Infrastructure stocks are modestly priced compared to historical levels, despite typically trading at a premium to global equities [2] - Current valuations present an attractive entry point for investors seeking long-duration, cash-generative assets [3] Infrastructure Market Overview - There are 16 Canadian-listed infrastructure funds with combined assets of approximately $2.7 billion, with the largest being the $1.1 billion iShares Global Infrastructure Index ETF [3] - Infrastructure assets have historically provided attractive risk-adjusted returns, making them appealing during various economic conditions [4] Economic Impact on Infrastructure - Infrastructure spending is essential during economic growth and is a preferred vehicle for stimulating economies during downturns [5] - Major trends impacting infrastructure include the shift towards renewable energy and technological innovations like AI [6] Performance Metrics - Utilities are experiencing earnings-per-share growth rates exceeding 10% annually, indicating strong sector performance [7] - U.S. companies dominate infrastructure fund allocations, with 69% of the BMO Global Infrastructure Index ETF's assets in U.S. stocks [8] Investment Strategies - Active managers seek a balance between traditional dividend payers and newer growth opportunities in infrastructure [10] - The Brompton Global Infrastructure ETF has a diversified allocation, with 43% in industrials, 20% in energy, and 12% in utilities [11] Dividend Opportunities - Infrastructure funds offer above-average dividend payouts, with the Brompton ETF yielding 5.4% as of January [13] - The CI Global Infrastructure Fund provides a monthly distribution of 6.9 cents per share, translating to an annual yield of 2.6% [14] Stability and Growth - Infrastructure companies benefit from high barriers to entry and generate predictable cash flows supported by regulated pricing or long-term contracts [15] - Rising power demand and firm pricing are contributing to the growth of pipelines and utilities, particularly in relation to AI adoption [16]

Core Insights - Global electricity demand is rising at the fastest pace in 15 years, expected to grow by more than 3.5% annually through the end of the decade, driven by AI infrastructure, advanced manufacturing, and electrification [1][3] Group 1: Power Demand Growth - Global electricity demand increased by 3% annually in 2025, following a growth of 4.4% in 2024, with an average growth rate of 3.6% projected from 2026 to 2030 [3] - Emerging economies, including China, India, and Southeast Asia, will account for 80% of additional power demand by 2030, while advanced economies are also seeing a return to growth after 15 years of stagnation [4] - U.S. electricity demand rose by 2.1% in 2025 and is expected to grow nearly 2% annually through 2030, with data centers driving half of this increase [5] Group 2: Power Generation Sources - Renewables, nuclear, and natural gas are the primary beneficiaries of the electricity demand boom, but their growth is contingent on effective grid connectivity [2] - The need for rapid and efficient expansion of grids is a pressing global issue, as developers face constraints in connecting new capacity to the grid [6] Group 3: Grid Investment Needs - Current global investments in grids are approximately $400 billion per year, which must increase by about 50% to meet the expected growth in power demand through 2030 [7] - The transition to the Age of Electricity will require significant scaling up of grid-related supply chains [7]

Core Viewpoint - Jiangsu Province has established the first new-type power system demonstration zone in the province, enabling enterprises to achieve "zero perception" of power outages [1] Group 1: Power System Innovation - The concept of "zero perception" of power outages means that customers are almost unaware of power interruptions during equipment failures or extreme weather events [1] - The new power system demonstration zone ensures near "zero downtime" for the power supply, maintaining continuity in electricity provision [1] Group 2: Technical Structure - The local power supply department has implemented a "petal + double ring network" structure, which can automatically disconnect faulty line segments [1] - This structure allows for rapid load transfer to other "healthy" lines, achieving millisecond-level fault isolation and recovery [1]

Group 1 - NRG Energy, Inc. has appointed Sanjay Kapoor to its Board of Directors, effective February 3, 2026, and he will also serve on the Board's Audit Committee [1][2] - Kapoor's appointment increases NRG's Board to 11 members, enhancing its expertise in industrial, financial, and operational leadership [2] - Kapoor has over 30 years of experience in senior financial and operational roles, particularly in regulated and complex industries [3] Group 2 - Kapoor is the retired Executive Vice President and CFO of Spirit AeroSystems and has held leadership positions at Raytheon and United Technologies, where he significantly increased revenue [4] - He has extensive board experience with companies such as Crane Company, SAAB, Inc., and Black & Veatch, contributing to governance in industrial and technology-driven markets [5] - NRG is a major provider of electricity, natural gas, and smart home solutions to eight million customers across North America, operating approximately 25 GW of power generation [6]

Core Insights - In 2025, China's electricity market transaction volume reached 6.6 trillion kilowatt-hours, marking a year-on-year growth of 7.4% and accounting for 64.0% of the total electricity consumption, an increase of 1.3 percentage points compared to the previous year [1] Transaction Volume Overview - The provincial transaction volume was 5.0473 trillion kilowatt-hours, reflecting a year-on-year increase of 6.2% [1] - The inter-provincial and inter-regional transaction volume was 1.5921 trillion kilowatt-hours, with a year-on-year growth of 11.6%, including 3.4 billion kilowatt-hours from cross-grid operations [1] Transaction Types - The medium and long-term transaction volume was 6.3522 trillion kilowatt-hours, while the spot transaction volume was 287.2 billion kilowatt-hours [1] - Green electricity transaction volume reached 328.5 billion kilowatt-hours, showing a significant year-on-year increase of 38.3% [1] December 2025 Performance - In December 2025, the total electricity market transaction volume was 608 billion kilowatt-hours, up 6.6% year-on-year [1] - The provincial transaction volume for December was 464.1 billion kilowatt-hours, increasing by 5.3% year-on-year, while the inter-provincial and inter-regional transaction volume was 143.9 billion kilowatt-hours, up 11.3% [1] - The medium and long-term transaction volume for December was 582.2 billion kilowatt-hours, and the spot transaction volume was 25.8 billion kilowatt-hours [1] - Green electricity transaction volume in December was 31.7 billion kilowatt-hours, reflecting a year-on-year growth of 32.3% [1]

Core Viewpoint - The Trump administration and a bipartisan group of governors are urging the PJM Interconnection to conduct a one-time "emergency" auction to provide new power sources for data centers, which could lead to the development of $15 billion in new power plants [2][4]. Group 1: Auction Proposal - The proposed auction would allow data center owners to bid on 15-year power purchase agreements, marking a significant change from PJM's usual operational procedures [2]. - Data centers would be obligated to pay for the new generation capacity, regardless of their actual power usage [2]. Group 2: PJM's Response - PJM is currently reviewing the emergency auction proposal and will collaborate with stakeholders to align it with a forthcoming plan for data center interconnections [3]. - PJM operates the grid and wholesale power markets across 13 Mid-Atlantic and Midwest states, serving approximately 65 million people [6]. Group 3: Regulatory Considerations - Any emergency auction would require approval from the Federal Energy Regulatory Commission (FERC), with the new FERC chairman prioritizing data center connections and grid reliability [4]. - Analysts suggest that the proposal from governors and federal officials lacks binding authority, indicating that it is more of a policy signal than an immediate market reform, with a potential timeline of six to twelve months before an auction could occur [5]. Group 4: Current Market Structure - PJM typically ensures power supply through capacity auctions held in advance, which are based on estimates of future power needs [7].

Core Insights - President Trump is set to announce an emergency power auction aimed at easing rising electricity costs, which could impact the cryptocurrency sector and the broader economy ahead of the 2026 midterms [1][5] Group 1: Emergency Power Auction Details - The auction will involve tech firms bidding for 15-year contracts to build new power plants, potentially supporting the development of approximately $15 billion worth of new facilities [3] - The initiative is being pushed by Trump and governors from several Northeastern states, with a non-binding "statement of principles" expected to be signed by Trump's National Energy Dominance Council and state leaders [2] Group 2: Electricity Demand and Pricing - PJM, the largest electricity grid operator in the U.S., supplies power to over 67 million people and hosts the world's largest concentration of data centers, particularly in northern Virginia [4] - The average U.S. retail electricity price rose 7.4% to a record 18.07 cents per kilowatt-hour in September 2025, with residential prices increasing even more [6] - Between January and August 2025, electricity prices surged by 10.5%, marking one of the largest increases in over a decade [7] Group 3: Impact on Industries - The growing demand for electricity is largely driven by large data centers, which are essential for economic expansion and maintaining the U.S.'s competitive edge in artificial intelligence [6] - Bitcoin miners, who previously relied on cheap electricity, are being displaced as AI data centers secure long-term power contracts, shifting the competitive landscape [8]