Electrical Grid Opportunities in Europe

While the threat of European austerity has taken much of the wind out of the sails of the alternative energy movement in Europe, the region still produces much of its power through these renewable means. Spain and Germany, the two European countries with the most installed wind and solar generating capacity, are functioning more like islands. Similar to the United States, each nation’s electrical grid functions on its own and they are not interconnected. Aside from bailout talks, European Commission energy regulators are beginning to work together to develop a cross-European market and the E.U. will also address the issue in its energy infrastructure package to be announced later this year. Individual subsidies for solar companies may come to an end; but the Commission seems intent on reaching efficiency goals and better inter-grid connections. These infrastructure improvements might make a better long term investment rather than the alternative power producers. The First Trust NASDAQ Clean Edge Smart Grid Infrastructure GRID is the best way to play the birth of the “smart grid” in both Europe and the United States. Another choice is the European utility heavy, SPDR FTSE/Macquarie Global Infrastructure 100 GII.