REPORT

Infrastructure

InvestmentOutlook2025

Recoverypending…

Managementsummary

andarelativelysoftstartto2025,investorscontinuetobecautiously

optimisticforarecoveryinthecomingmonths.Followingresilientperformance

in2022andasignificantblowtoinfrastructuredealactivityin2023,therewere

expectationsofanuptickinactivityin2024.However,continuedchallenging

financingconditionsresultedinfurtherdeclinesindealcountanddealsizein2024,incontrasttotheactivityuptickseeninprivateequitybuyoutsin2024.Despitethechallengingdealmarket,thewaveofconsolidationthatstartedin2022continuedinto2024,includingBlackrock'sacquisitionofGIP,GeneralAtlantic'sacquisitionofActisandCVC'sacquisitionofDIF.Lookingahead,whiledealmakinghas

remainedrelativelysoftinthefirsthalfof2025,theever-increasingneed

forcapitaltodeveloplong-termsustainableinfrastructuremeanstheoutlookforinfrastructuredealsispositive.Thematicinvestmentsinenergytransition,transportationdecarbonisation,andcirculareconomyaresettocontinue,

alongsidegreaterfocusoncore+andvalue-addhybridinfrastructureassets.Inthisreport,westartatamacrolevel,dissectingthebroaderinvestmentandfundraisingtrends,beforemovingtosector-levelanalysis,whereweaddresskeyfrontiertopicsbysector.

D

espiteanotherchallengingyearforinfrastructureinvestmentin2024

Cover:KarlHendon/gettyimages

2RolandBerger|InfrastructureInvestmentOutlook2025

3RolandBerger|InfrastructureInvestmentOutlook2025

Contents

1

2

3

4

9

13

Page

InfrastructureM&Adevelopmentandfundraising

Currentsentimentandoutlookfor2025

Sectoroutlookanalysis

3.1/Energy

3.2/Utilities

3.3/Transportation

3.4/Digitalinfrastructure

3.5/Socialinfrastructure

3.6/Hybridinfrastructure

30

Conclusion

Fast

facts

8%

declineinglobalinfrastructure

dealcountin2024vs.2023

14%

increasein

infrastructurefundraisingin2024vs.2023

86%

ofsurvey

respondents

expectthe

dealcountto

increasein2025relativeto2024

InfrastructureM&Adevelopment

andfundraising

5RolandBerger|InfrastructureInvestmentOutlook2025

Macroheadwindsthatstartedblowingin2022andpickedupspeedin2023failedtosubsidein2024,furtherimpactinginfrastructureM&Aactivity.In2024,globalinfrastructureM&Adealcountdeclined8%year-over-year(y-o-y),whiletheaveragedealsizedropped14%.Thisfurtherdeclinein2024contrastswithwhatmostrespondentsinourInfrastructureInvestmentOutlook2024surveyexpected,where60%ofrespondentsexpectedaslighttomoderatedealcountincreasein2024.Lowfundraisinglevelsandaworseningmacroeconomicsituation(inparticular,spikinginterestratesandgeopoliticaluncertainties)weretheprimaryreasons.

A

AGlobalinfrastructuredealcountandaveragesize1

750

700

650

600

550

500

450

400

350

300

250

200

150

100

50

0

3,4583,477

2,904

2,9202,938

2,803

2,684

2,606

2,533

2,167

1,983

20142015201620172018201920202021202220232024

Avg.dealsize[USDm]Dealcount[#]

1Averagedealsizefordealswithaknownvalue

Source:Preqin

Despiteasoftstartto2025,

infrastructureinvestorsare

cautiouslyoptimisticthatfavorable

trendswillcontinuetodrivethe

needforinfrastructurecapital."

SiongkoonLim,Partner

6RolandBerger|InfrastructureInvestmentOutlook2025

EuropeandNorthAmericaaccountedfortwo-thirdsoftheglobaldealcountin2024.Theirshareintheglobaldealcountdeclinedby3ppy-o-yasM&AactivityrecoveredinAPAC.Infact,APACwastheonlyregionwherethedealcountincreasedin2024(by16%y-o-y),supportedbyamorefavourablemacroeconomicenvironmentintheregionandnationalgovernmentinitiativestodriveinvestmentinlarge-scaleprojects.Whiledealsizedeclinedvs.2023inallregions,dealsizeinNorthAmericain2024wasstillhigherthanwhatwasseenhistorically(exceptfor2019and2021,whereafewmegadealsskewedthepicture).B

BInfrastructuredealcountandaveragesizebygeographyDealcount[#]

3,4583,477

2,920

2,803

2,9382,904

2,684

2,606

2,533

2,167

1,983

20142015201620172018201920202021202220232024

EuropeNorthAmericaAPACRestoftheworld

Averagedealsize1[USDm]

1,400

1,200

1,000

800

600

400

200

0

20142015201620172018201920202021202220232024 EuropeNorthAmericaAPACRestoftheworld

1Averagedealsizefordealswithaknownvalue

Source:Preqin

7RolandBerger|InfrastructureInvestmentOutlook2025

Despiteadeclineinthedealcountin2024,energyremainsthelargestinfrastructuresector,accountingfor69%ofdeals.Almostallsectorswereimpactedbythecontinuedmacroheadwinds,withthesteepestdeclineinutilities(~33%y-o-y).However,thedigitalandsocialinfrastructuresectorssawanuptickinM&Aactivity,withthedealcountrisingby17%and21%y-o-y,respectively.Notethatonesegmentnotcoveredinthisdataishybridinfrastructure(thecrossoverspacebetweenbusinessservicesandinfrastructureassets),whichhasbeencontinuingtogarnerinterestfrominfrastructureinvestors.C

CInfrastructuredealcountandaveragesizebysectorDealcount[#]

3,4583,477

2,9202,938

2,803

2,904

2,6062,684

2,533

2,167

1,983

20142015201620172018201920202021202220232024

EnergyUtilitiesTransportationDigitalinfrastructureSocialinfrastructure2Other3

Averagedealsizeover2014-20241[USDm]

1,400

1,200

1,000

800

600

400

200

0

20142015201620172018201920202021202220232024 EnergyUtilitiesTransportationDigitalinfrastructureSocialinfrastructure2

1Averagedealsizefordealswithaknownvalue;2Includeshealthcareandeducation;3Includesdiversified,defense,governmentbuildingsandunassigneddeals

Source:Preqin

8RolandBerger|InfrastructureInvestmentOutlook2025

Whiletheslowdownhadamarkedimpactoninfrastructurefundraisingin2023(whichhalvedfromits2022peakofUSD154bn),fundraisinglevelsinfactincreasedby14%y-o-yin2024.Thoughfundraisingforthecore+andopportunisticstrategiesdeclined,thiswasmorethanoffsetbygrowthinthecoreandvalue-addstrategies,wherefundraisingincreasedby2.5xand3.5xy-o-y,respectively.Relativeto2024,NorthAmerica'sshareinglobalfundraisingdeclined,offsetbysignificantincreasesacrossallotherregions,withEuropeaccountingforover50%oftotalfundraising.DandE

DInfrastructurefundraisingbyfundstrategy,2019-2024[USDbn]

154

141

113106

87

76

201920202021202220232024

CoreCore+ValueaddOpportunistic

Source:Preqin

EInfrastructurefundraisingbygeographyandfundstrategy,2019-2024

[USDbn]

%oftotal

38%

6%

7%

39%

54%

5%

2%

51%

25%

16%

7%

49%

44.6

55.6

41.0

42.4

29.9

22.2

14.0

6.3

3.9

7.07.6

1.4

EuropeNorthAPACRoWEuropeNorthAPACRoWEuropeNorthAPACRoW

AmericaAmericaAmerica

201920232024

CoreCore+ValueaddOpportunistic

Source:Preqin

Currentsentimentandoutlookfor

2025

10RolandBerger|InfrastructureInvestmentOutlook2025

Togaugeinvestors'expectationsforinfrastructureinvestmentsin2025,wesurveyedexperiencedinvestmentbankersandfundmanagers.86%ofrespondentsexpectgrowthintheinfrastructuredealcountin2025,upfrom77%in2024.Whileoverallsentimentisstrongerrelativetoour2024survey,respondents'expectationsarelessbullish,with81%expectingdealcounttogrowslightlyormoderately(vs.60%in2024)andonly5%expectingittogrowstrongly(vs.14%in2024).Thepositiveoutlookholdsacrossalldealsizesbutisleastoptimisticforlargerdeals.F

FOutlookforinfrastructuredealcount-2025vs.2024

Investmentoutlook-

Overall[%ofrespondents]

Mostrespondentsexpect

infrastructuredealstogrowbyupto10%y-o-yin2024

60

50

40

30

20

10

0

Investmentoutlook-

Byassetsize[%ofrespondents]

Thepositivesentimentpersistsacrossalldealsizebrackets,albeitlowestforUSD>5bnvaluedeals

<USD

0.5bn

USD

0.5-1.0bn

USD

1.0-2.0bn

>USD

5.0bn

USD

2.0-5.0bn

N=37N=31N=30N=29N=29N=27

Strongdecline

(below-10%)Slightgrowth

(0%to5%)

Moderatedecline

(-5%to-10%)

Moderategrowth

(5%to10%)

Slightdecline

(upto-5%)

Stronggrowth

(10%+)

Stable

(c.0%)

Source:RolandBergerInfrastructureInvestmentOutlookSurvey2025

Surveyrespondents'profileoverview

Overallnumberofrespondents

N=37

Respondents'currentorganizationtype

[%ofrespondents]

8%

59%

Other

32%

Infrastructurefund

M&A

Investmentbanking

Respondents'geographicalfocus[%ofrespondents]

Global

Europe

NorthAmerica

Respondents'sectorfocus

[%ofrespondents]

19%

22%

86%

TransportationEnergy

UtilitiesSocialinfrastructureDigitalinfrastructureHybridinfrastructure

89%78%

65%

32%

68%

46%

Source:RolandBergerInfrastructureInvestmentOutlookSurvey2025

11RolandBerger|InfrastructureInvestmentOutlook2025

Respondentsexpectdealcounttogrowacrossallregions,withparticularlypositivesentimentacrossEuropeandNorthAmerica,where78%and79%ofrespondents,respectively,expectgrowth.RespondentsexpectslighttomoderategrowthinEuropeandAsia-Pacific(thoughaquarterofrespondentsexpectdealcountinAsia-Pacifictoremainflat)buthavethestrongestexpectationsforNorthAmerica,with18%expectingdealcounttogrowbyatleast10%intheregion.Thesentimentdifferssignificantlyacrosssectors,withrespondentsbeingmoreupbeatfortransportation,energyandhybridinfrastructurethanforutilitiesanddigitalandsocialinfrastructure.GandH

GOutlookforinfrastructuredealcountbygeography-2025vs.2024

[%ofrespondents]

50

40

30

20

10

0

Restofworld

N=19

Asia-Pacific

N=19

Europe

N=37

NorthAmerica

N=28

Strongdecline

(below-10%)Slightgrowth

(0%to5%)

Moderatedecline

(-5%to-10%)

Moderategrowth

(5%to10%)

Stable

(c.0%)

Slightdecline

(upto-5%)

Stronggrowth

(10%+)

Source:RolandBergerInfrastructureInvestmentOutlookSurvey2025

HOutlookforinfrastructuredealcountbysector-2025vs.2024

[%ofrespondents]

60

50

40

30

20

10

0

TransportationEnergyUtilitiesSocialDigitalHybrid

(includingwaste)infrastructureinfrastructureinfrastructure

N=37N=36N=36N=31N=36N=36

Strongdecline

Moderatedecline

Slightdecline

Stable

(below-10%)

(-5%to-10%)

(upto-5%)

(c.0%)

Slightgrowth

Moderategrowth

Stronggrowth

(0%to5%)

(5%to10%)

(10%+)

Source:RolandBergerInfrastructureInvestmentOutlookSurvey2025

12RolandBerger|InfrastructureInvestmentOutlook2025

Respondentsspecifiedtheavailabilityofattractiveacquisitiontargetsasthemostimpactfulfactorinfluencinginfrastructureinvestments,followedbythemacroeconomicsituationandfinancingavailability.Whilegeopoliticaluncertaintyisexpectedtoremain,andpotentiallyworsen,thisdoesnotdampeninvestorsentimentfordealsorfundraising,withjust6%ofrespondentsexpectingfundraisingin2025tobemoredifficultthanin2024.Alongsidethis,valuecreationisattheforefrontofinvestors'minds,with86%expectingittobecomemoreimportantin2025.l

lFactorsinfIuencinginfrastructureinvestmentsandfundraisingin2025

DeveIopmentoffactorsinfIuencinginfrastructureinvestments-2024vs.2023

[%ofrespondents]

1

2

3

4

5

N=37

AvaiIabiIityofattractiveacquisitiontargets

N=37

OveraIIeconomicsituation/economiccycIe

N=37

AvaiIabiIityofdebtfinancingandinterestrates

N=37

GeopoIiticaIenvironment(e.g.,tradeconfIicts)

N=36

GIobaIinfrastructurefundinggap

DecreasingorderofimportanceWorsenImproveRemainstable

94%

86%

Thevastmajorityofrespondentsbelieveitwill

beeasier(56%)ortakethesameeffort(38%)

tofundraisein2025relativeto2024

Morethanfour-fifthsoftherespondents

believethatvaIuecreationwiIIbecome

moreimportantin2025vs.2024

Source:RolandBergerInfrastructureInvestmentOutlookSurvey2025

Sectoroutlookanalysis

Wefurthersurveyedtheparticipantsonvariousinfrastructuresectorstounderstandtwokeyaspects:

1.Investmentfocus:Giventhecurrentmacroeconomicenvironment,wewantedtoknowhowparticipantsexpecttheirinvestmentfocustochangeacrossthecore,core+andvalue-addstrategies.Onabroaderlevel,mostrespondentsconsideredcore+andvalue-addassetsmoreattractivein2025thanin2024.Therewerenuancesinsomesub-sectors,whichwewilladdressintherespectivesections.

2.Futureattractiveness:Inaddition,wewantedtounderstandwhichinfrastructureassetsaredeemedmoreattractivein2025thantheywerein2024.Wealsogatheredinterestinginsightsintoeachofthesub-sectorsandassettypesthatinvestorsexpecttofocusonin2025.

Wenowdelveintoeachofthesectors,presentingtheoutputofthesurveyandRolandBerger'sviewsoninvestmentactivityinthesesectors.

14RolandBerger|InfrastructureInvestmentOutlook2025

3.1/Energy

In2024,theenergysectorremainedtheleadingsegmentininfrastructureintermsofdealcount.Ingeneral,thesectorsufferedlessthanotherinfrastructuresectors,asdealflowdroppedby~10%y-o-y,reflectingitscrucialimportancetodealmakersduetoglobalsustainabilitygoals.J

JEnergyinfrastructure-surveyresults

Relativefocusbyassettype-2025vs.2024[%ofrespondents]

70

60

50

40

30

20

10

0

Decreaseslightly

Increasesignificantly

Nochange

DecreasesignificantlyIncreaseslightly

Mostattractiveassets(N=20)[%ofrespondents]

Heatelectrification/heatpumpsEnergyefficiencyschemesBiogas

Energystorage/batteriesGrid-scalesolarOnshorewind

CCUS(carboncapture,utilizationandstorage)

Sustainableaviationfuels(SAFs)Offshorewind

LNGregasificationandonshorestorage

Other

Nuclear-SMR

LDES-CAES,liquid-to-airOtherbiofuels

Low-carbonhydrogen(greenandblue)

60%50%50%45%

35%

30%

25%

20%

15%

15%

5%

5%

5%

0%0%

Heatelectrificationassetsarehighlyattractivetoinvestors,asthemostfeasibleand

economicalpathwaytodecarbonizeheating

Grid-scalesolarandonshorewindareincreasingin

attractivenesssincelastyearasgenerationcapacityscalesglobally

91%

Mostenergyinvestorspreferbrownfieldprojects(64%)togreenfieldones

orhavenoexplicitpreference(27%)

Source:RolandBergerInfrastructureInvestmentOutlookSurvey2025

15RolandBerger|InfrastructureInvestmentOutlook2025

Surveyrespondentsexpressedabroadlypositiveandimprovingoutlookforenergy-relateddealmakingin2025,withaclearpreferenceforcore+andvalue-addstrategies.Notably,around64%ofparticipantsindicatedapreferenceforbrownfieldinvestments—highlightingapragmaticfocusonupgradingandoptimizingexistinginfrastructureassetsovergreenfielddevelopment.

Markinganotableshiftfromtheprevioustwoyears,heatelectrificationemergedasthemostattractiveenergyinvestmenttheme,with60%ofrespondentsidentifyingitasatopassetclass.Thistransitionisdrivenbyseveralreinforcingfactors.Asgovernmentsmovetodecarbonizeresidential,commercialandindustrialheating—oneofthelargestsourcesofcarbonemissionsinmanyeconomies—electrificationpresentsascalable,maturepathway.Theproliferationofheatpumps,districtheatingupgradesandelectrifiedprocessheatsolutionsinindustryoffersstable,regulatedandoftensubsidy-backedinvestmentcases.

Energyefficiencyschemesalsosawasurgeininvestorinterest,buoyedbytheirabilitytodeliverimmediatecarbonsavingsatrelativelylowcapitalintensity.Theseschemesareincreasinglyframedasessentialenablersofnationalclimatetargetsandareoftensupportedbypolicyincentives,especiallyinEurope.

Meanwhile,moretraditionalfavoritessuchasbiogasandgrid-scalebatterystorageretainedtheirpositioninthetopfivemostattractiveassetclasses.However,energystorage/batteriessawthemostsignificantdropininvestorsentiment,decliningby32percentagepointsyear-over-year.Thismayreflectgrowingconcernsaboutmarketsaturationincertainregions,uncertaintiesaroundevolvingrevenuemodels,andincreasedcompetitionpushingdownreturns.

CCUSremainsarelevant,albeitnotcrucial,topicforinvestors,with25%ofrespondentsidentifyingitasamongthemostattractiveassets–thisislikelybecausetheeconomiccaseremainsimmature,withalackofclarityongovernmentsupportschemesandthelowcostofcarbonbeingidentifiedasthemainobstaclestorollout.WithinCCUS,assets/industrieswithpotentialforcarboncaptureretrofitareseenasthemostattractiveassettypes(61%ofrespondents),withwaste-to-energybeingtherunawaywinneramongindustriesexpectedtomakethemostprogress.

Attheotherendofthespectrum,assetcategoriesthatappearlessappealingtoinvestorsin2025includelong-durationenergystorage(LDES)technologieslikecompressedairenergystorage(CAES)/liquid-to-airsystems,nuclear–smallmodularreactors(SMRs)andotherbiofuels.Whilethesetechnologiesareoftencitedinlong-termdecarbonizationroadmaps,theyarecurrentlyseenaseithertooearly-stage,capitalintensive,orburdenedbyregulatoryandpublicperceptionrisks.Manyinvestorsremaincautious,preferringtoallocatecapitaltowardmoreproven,revenue-generatingsolutionsinthenearterm.

Astheenergytransitionmatures,investorfocusisclearlyshiftingtowardscalable,economicallyviableandpolicy-alignedassets.Heatelectrificationandenergyefficiencyrepresentthisnewwave–technologiesthatarenotonlyclimatecriticalbutalsocommerciallycompellinginthecurrentmarketenvironment.

16RolandBerger|InfrastructureInvestmentOutlook2025

ZOOMIN-CCUS

KCCUSdeepdive-surveyresults

MostattractiveCCUSassettypesforinfrastructureinvestment(N=18)[%respondents]

Assets/industrieswith potentialforcarboncapturerolloutonexistinginfrastructure

CO2storageinfrastructureTransportationinfrastructureLiquefactioninfrastructure

Other

CO2utilizationassets(e.g.,power-to-liquidfuels)

61%

39%

28%

17%

6%

6%

IndustriesexpectedtomakethemostadvancementonCCUSrolloutoverthenextdecade(N=17)[%respondents]

Waste-to-energyBioenergy(i.e.,BECCS)Ironandsteel

Cement

Chemicals(includingfertilizers)Other

DirectaircaptureTraditionalenergygeneration

59%

35%

6%

6%

6%

18%

18%

18%

KeyobstaclestowidespreadCCUSrolloutacrosshard-to-abateindustriesinEurope(N=17)[%respondents]

Lackofclarityon

governmentsupportschemesLowcostofcarbon(e.g.,lowETSprice)

Lackoftransportationinfrastructure

Technologicaluncertainty

Other

Lackofstorage/utilizationoptions

47%

35%

29%

12%

12%

53%

Source:RolandBergerInfrastructureInvestmentOutlookSurvey2025

17RolandBerger|InfrastructureInvestmentOutlook2025

Asglobaleconomiespursueambitiousclimatetargets,thespotlightisincreasinglyturningtohard-to-abatesectors,includingpowergenerationfromfossilfuels,cement,ironandsteel,andchemicalproduction,whichcollectivelycontributemorethan31gigatonsofCO?equivalentemissionsannually.Thesesectorsfaceuniquedecarbonizationchallenges–manyofwhichcannotbeaddressedbyelectrificationalone.

Fortheseindustries,carboncapture,utilizationandstorage(CCUS)isemergingasthecornerstoneofanycredibledecarbonizationpathway.ThemomentumforCCUShasneverbeenstronger.Carbonpricesareexpectedtorisesteadily,andmorecountriesareworkingonimplementingschemestopenalizeemittingCO2.ThismakesitincreasinglyexpensiveforemitterstoreleaseCO?withoutabatement.Governmentsaroundtheworldareratchetinguptheirclimatetargets,committingtolegallybindingemissionsreductionsthatextenddeepintoindustrialvaluechains.Meanwhile,technologycostsarebeginningtofall,withearlydeploymentsshowingpromisingperformanceandeconomics.

Still,thescaleofthechallengeremainsdaunting.Atpresent,globalCCUScapacityhoversataround50milliontonsperyear.Tomeeteventhemostconservativeclimategoals,thiscapacitymustgrowbyordersofmagnitudeoverthecomingdecades.Whatisneededisamassivescalingofinfrastructure–pipelines,terminals,storagesitesand,critically,capturesystemsinstalledatindustrialplants.

ThemostefficientandscalablewaytodeployCCUSiswidelyseentobethroughthedevelopmentofintegratedhubs–networksthatconnectmultipleemitterstosharedCO?transportationandstorageinfrastructure.Thesehubsoffercompellingbenefits:theyreduceunitcoststhroughvolumeaggregation,mitigateriskbydiversifyingtheemitterbase,andestablishascalablefoundationforlong-termcarbonmanagement.Yet,inpractice,mostCCUShubconceptsremainatanearlystage.ProjectssuchastheEastCoastClusterintheUK,PorthosintheNetherlandsandGOCO?inFrancearepromisingexamplesofmulti-stakeholdercoordination,buttheycontinuetofacecomplexpermitting,fundingandpolicyalignmentchallenges.

Despitethesehurdles,momentumisbuilding–forexampleintheUnitedStates,wheretheGulfCoastandMidwestareexperiencingasurgeinprojectactivity.Favorablesubsurfacegeology,coupledwithrobustfederaltaxincentiveslikethe45Qcredit,hascreatedanattractiveenvironmentforCCUSinvestmentanddeployment.InEurope,theNorthSearegionhasemergedasafocalpoint.Norway,theUnitedKingdomandtheNetherlandsareleadingeffortstobuildcross-bordercarbonmanagementinfrastructure,supportedbystrongpolicyframeworksandindustrialdemand.

AflagshipinitiativeanchoringEuropeanCCUSdevelopmentisNorthernLights–theworld'sfirstcommercial,open-accessCO?transportationandstorageproject.DevelopedaspartofNorway'sLongshipinitiativebyEquinor,ShellandTotalEnergies,NorthernLightsenablesindustrialemittersacrossEuropetodecarbonizebyprovidingaturnkeytransportationandstoragesolution.CO?iscapturedatindustrialsites,liquefied,andshippedviaspecializedvesselstoanonshoreterminalin?ygarden,whereitistheninjectedintoadeepsalineaquiferbeneaththeNorthSea.

Forinfrastructureinvestors,CCUSoffersacompellinginvestmentopportunity.

Eachelementofthevaluechain–capturefacilities,transportationnetworks,terminalsandstoragesites–requiressignificantcapitalinvestmentandpresentsattractivelong-termcashflowsunderpinnedbyregulatoryframeworksandclimatecommitments.K

18RolandBerger|InfrastructureInvestmentOutlook2025

3.2/Utilities

MuchofthefocuswithintheEuropeanutilitieslandscaperecentlyhasbeenonassetsintheUK,whereutilitieshaverarelyfacedagreatervariationinfortunes.

Waterutilitiesarefacingawellpublicizedstorm,bestcharacterizedbytheongoingThamesWatercrisis,fromwhichbothequityanddebtprovidersaresuffering.Withaninevitablerebasingoffinanceandinvestmentplans,thissectorwillbeahugefocusofinvestorsinthecomingyear,albeitnowathigh-riskequityreturns.

Gastransmissionanddistributionnetworksareperhapsthemoststableutilitysector.

Discussionofhydrogenblendinghasfallenaway,butboominggasturbineordersindicatetheresilienceofgasasabridgingfuel,andthescrappingofdomesticgasboilerbanspreviouslypennedinfor2035addsconfidenceforthegasdistributionnetworks.

Electricitynetworks,meanwhile,arefacingonce-in-a-lifetimerenaissance.Thenewgovernment'stargetsfordecarbonization,andattendantplanningreform,underpindouble-digitCAGRsinregulatorydeterminationsatallvoltagesandinallregionsoftheBritishIsles.Thecurrentstrategicchallengeforallassociatedbusinessesisinsecuringthematerials,hardwareandqualifiedstaffneededtodeliveronplannedgrowthwithoutfuelingcostinflation.L

LUtilities(includingwastemanagement)infrastructure-surveyresults

Relativefocusbyassettype-2025vs.2024[%ofrespondents]

60

50

40

30

20

10

0

Core

Core+

Valueadd

N=18

N=17

N=16

DecreasesignificantlyDecreaseslightly

Nochange

Increaseslightly

Increasesignificantly

Mostattractiveassetswithinutilitiesinfrastructure(N=19)[%ofrespondents]

Heatnetworks/districtheatingElectricitylast-mileinfrastructure ElectricitydistributionnetworksWastemanagement

Waterlast-mileinfrastructureGaslast-mileinfrastructureWaterdistributionnetworksGasdistributionnetworks

37%

21%5%

5%

0%

58%58%

58%

Theprominenceofheatnetworksanddistrictheatingconfirmstherelevanceofheatdecarbonizationasafocustopicinenergy&utilities

Similarly,electricityinfrastructureisincreasinglyattractiveto

investorsasthegriddecarbonizes

Source:RolandBergerInfrastructureInvest