Global Sustainability Power Capex Feedback from Investors

Research evidence excerpt

Global Sustainability Power Capex Feedback from Investors

Global Research

16 June 2026ab

Global Sustainability Equities

GlobalPower Capex Feedback from Investors

Global Sustainability

Shneur Z. Gershuni, CFA

What Happened? Analyst

Following 1Q'26 earnings we put out our US power demand deep dive "How could half shneur.gershuni@ubs.com

a trillion dollars of Power Capex be spent by '30?, in which we introduced the +1-212-713 3974

proprietary UBS Capex Dispatch Curve Model. As the debate shifts to token Kathryn Graves, PhD

optimization, AI rationalization, and the impact on power demand, we think our model Associate Analyst

serves as a helpful tool in framing the debate. Here we discuss the most poignant kathryn.graves@ubs.com

feedback that has emerged from the global investor feedback on our note and model. +1-212-713 4871

William Appicelli, CFA

Agreement across the board on batteries, but... Analyst

william.appicelli@ubs.com

In our conversations with investors, there was near unilateral agreement that batteries

+1-212-713 1414

and storage are currently the most economic option. However, there was less agreement

on how to benefit from it as investors fear a potential tsunami of capacity coming online, Josh Silverstein

although there seems to be consensus to look through to Lithium plays. Manufacturing Analyst

josh.silverstein@ubs.com

costs continue to decrease and the EV pivots into BESS continue (eg. Ford, GM, TSLA)

+1-212-713 3513

creating ready supply versus the multi-year backlog on solutions like GEV and Siemens

gas turbines. Important to this discussion is the recognition that batteries do not create Gregg Orrill

power -- they shift it in time essentially synthetically creating power via availability. We Analyst

gregg.orrill@ubs.com