Value Investing

Indian Renewable Energy Development Agency Ltd. (IREDA), Power Finance Corporation (PFC), and Rural Electrification Corporation (REC) are pivotal players in India’s energy financing sector. This analysis delves into their business models, market strategies, strengths, weaknesses, financial performance, and future strategies, offering an in-depth comparison to highlight each entity’s market position and growth potential in renewable energy financing.

Value Investing

Adani Enterprises, Adani Green, Adani Ports, and Adani Power each play distinct roles in India’s infrastructure and energy sectors. Their financial and operational performance varies, with each company catering to different market needs and demonstrating unique strengths and challenges. This diverse offering positions the Adani Group prominently in India’s growth narrative.

Value Investing

The analysis underscores the strategic positions of SJVN and NHPC as frontrunners in India’s transition to renewable energy, with both companies showcasing significant achievements in hydroelectric power. Jaiprakash Ventures offers a diversified model, extending beyond energy, which presents a unique blend of opportunities and challenges in the broader economic context.

Strategy Journal

In a dramatic turn of events, the Baltimore Bridge, a critical infrastructure component in the northeastern United States, has collapsed. This incident not only raises significant concerns about transportation safety and infrastructure integrity but also casts a long shadow over the energy markets, particularly the coal industry, which has been a cornerstone of the region’s energy supply.

The Baltimore Bridge has served as a vital artery for the transportation of coal from mines in the Appalachian region to power plants and export terminals along the East Coast. Its collapse disrupts this crucial supply chain, posing immediate and pressing challenges for the energy sector.

Impact on Coal Transportation and Prices

First and foremost, the bridge’s collapse disrupts coal transportation. The immediate effect is a bottleneck in coal supply, causing delays in deliveries to power plants and export facilities. These delays could lead to a temporary spike in coal prices due to the sudden squeeze in supply, impacting not only the power generation sector but also manufacturing industries that rely on coal as a raw material or energy source.

Utilities and power plants that depend on timely coal deliveries might face operational challenges, potentially leading to increased operational costs or even forced outages. This situation could lead to a greater reliance on alternative fuels or energy sources, possibly hastening the energy transition in some sectors.

Strategic Implications and Long-term Effects

In the longer term, the bridge collapse prompts a reassessment of transportation and infrastructure resilience in the face of aging infrastructure across the United States. The incident could accelerate investments in infrastructure upgrades or alternative transportation routes, which, while beneficial for long-term resilience, may entail short-term disruptions and capital reallocation in the energy sector.

The bridge collapse also underscores the vulnerability of the coal industry to logistical disruptions. As the industry grapples with competitive pressures from cheaper and cleaner energy sources, any additional challenges—such as those posed by infrastructure failures—could accelerate the decline of coal in the U.S. energy mix.

Opportunities for Renewables and Energy Transition

Conversely, the incident may present an opportunity for renewable energy sources to gain a stronger foothold in the market. As utilities and industries seek to mitigate the risk of similar supply chain disruptions in the future, the appeal of locally generated, less infrastructure-dependent renewable energy could increase.

Policy and Regulatory Implications

The bridge collapse will likely have significant policy and regulatory implications. It serves as a wake-up call for the urgent need to invest in and upgrade the nation’s infrastructure, not only to ensure the safety and efficiency of transportation but also to secure the energy supply chain. Policymakers may need to consider more robust infrastructure resilience measures, potentially influencing future energy policies and investment priorities.


While the immediate focus is on search and rescue operations and understanding the cause of the Baltimore Bridge collapse, its implications for the energy sector, particularly the coal industry, are profound. This incident serves as a stark reminder of the interconnectedness of infrastructure, energy supply, and market dynamics. As the situation evolves, stakeholders across the energy spectrum will need to navigate these challenges, adapting to both the immediate impacts and the long-term shifts in the energy landscape.

Strategy Journal

In a pioneering move to address global carbon emissions, Japan is charting a course with Malaysia to sequester its industrial and power plant carbon emissions within the Southeast Asian nation. The ambitious venture, as insiders reveal, is targeting its inaugural carbon shipment by 2028. The diplomatic channels are buzzing as Yasutoshi Nishimura, Japan’s Minister for Economy, Trade, and Industry, is poised to engage with top-tier executives from Malaysia’s state-backed energy titan, Petronas. This meeting is part of a broader tapestry of Japanese-led dialogues centered on decarbonization. Adding a technological edge, Mitsubishi Heavy Industries has unveiled a prototype vessel designed for the transport of liquefied carbon dioxide, hinting at the potential use of eco-friendly fuels for carbon transit. This Japan-Malaysia collaboration underscores a strategic pivot in Asia’s approach to carbon neutrality and environmental stewardship. Source- Nikkei

Strategy Journal

UK Energy Crisis : The UK’s energy landscape is undergoing significant shifts as Prime Minister Rishi Sunak announces a strategic pivot in the nation’s climate action goals. Amidst an intensifying energy crisis, Sunak has proposed a five-year delay to the ban on petrol and diesel cars, pushing it to 2035. This move, part of a broader softening of policies aimed at achieving net zero carbon emissions by 2050, has been met with widespread criticism. Environmentalists, opposition lawmakers, and industry leaders have voiced concerns, pointing to the UK’s leadership role in climate policies. The decision also comes at a time when the ESB’s consumer business in the UK reported substantial losses due to the crisis, and global automakers like Ford emphasize the need for consistent government policies to support the transition to electric vehicles. The recalibration of the UK’s green agenda, coupled with recent approvals of new oil and gas licenses, underscores the challenges the nation faces in balancing economic pressures with environmental commitments.

Update 24 September : The UK grapples with soaring energy bills, expected to persist despite Ofgem’s recent 7% reduction in the price cap from £2,074 to £1,923 annually. This revised cap, while a relief, remains significantly above the pre-crisis average of £1,000-£1,200. The aftermath of the pandemic, coupled with the collapse of 30 energy suppliers and skyrocketing gas prices, has pushed energy costs to unprecedented highs. While Ofgem’s chief, Jonathan Brearley, welcomes the cap reduction, he underscores the broader cost-of-living challenges Britons face. Calls intensify for the government to intervene, with advocates like Adam Scorer of National Energy Action urging for targeted energy discounts. Meanwhile, Labour’s Ed Miliband criticizes the government’s perceived inaction on bolstering renewable energy. A forecast by consultancy Cornwall Insight paints a grim picture, suggesting elevated energy bills could be the norm until the decade’s end.

Strategy Journal
  • European clean tech start-ups attracted $8.7 billion in investment for early-stage technologies within the year since the Inflation Reduction Act (IRA) was signed in the US.
  • In contrast, the US secured more than $21.7 billion for similar projects in the same time frame.
  • Despite the EU leading in energy and transport investment in Q2 2022, the US outpaced the EU in funding for clean hydrogen since Q2.
  • Venture capital investments in clean hydrogen reached €343 million in the EU’s Q1 2022, three times the US’s equivalent funding, but subsequent quarters saw the US outpace the EU.
  • The European Commission announced the Net Zero Industry Act and loosened state aid rules in response to the IRA, pledging an EU fund to boost investment in green industries.
  • The US’s tax credit scheme was seen as simpler and more focused on mass deployment of green technologies than the EU’s funding program.
Situation Report

Engine No. 1, a private equity firm driven by Charlie Penner and Chris James, is revolutionizing corporate governance. With an ESG-focused strategy, they challenged giants like Vale, prompting safety and environmental reforms, and ExxonMobil, reshaping energy’s climate stance. Their campaign against Apple underscored tech’s responsibility for sustainability. Lessons from their investment in Theranos emphasized due diligence. Collaborating with Perennial Value Management’s Perennial Total Value Fund demonstrated unity in advocating for responsible practices. While victories are celebrated, navigating differing leadership styles and balancing short-term gains with long-term ESG goals remain challenges. Engine No. 1’s journey highlights the transformative power of responsible business, benefiting shareholders and society.


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Countries planning to become Hydrogen exporters