---
title: "How to invest in \"electric\" assets as energy security goes mainstream?"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/279359863.md"
description: "Recently, the concept of energy security has gained strong traction, becoming the core investment theme in the market, with power-related sectors rising across the board. The escalation of geopolitical conflicts has led to a restructuring of the global energy landscape, and energy security has become a consensus among countries. Power assets, due to their distributed characteristics and low resource requirements, have become a beneficiary direction for alternative energy. The entire power industry chain is expected to see an increase in prosperity, with areas such as power generation, transmission, and storage becoming key investment focuses"
datetime: "2026-03-17T03:04:12.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/279359863.md)
  - [en](https://longbridge.com/en/news/279359863.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/279359863.md)
---

# How to invest in "electric" assets as energy security goes mainstream?

Recently, the concept of energy security has gained significant traction, becoming one of the core investment themes across the market, with power-related sectors rising across the board. The trend of capital allocating towards "electricity-containing" assets is becoming increasingly evident.

The immediate question is: Why has the long-dormant concept of energy security suddenly come to the forefront? Is the rise of "electricity-containing" assets a short-term speculation or a long-term trend? How should one position themselves to seize the benefits of the power industry under energy security?

Overall, the emergence of the energy security concept is driven by escalating geopolitical conflicts, leading to a global restructuring of energy supply. This is a result of a resonance between high demand and strong industrial trends, where capital votes with its feet, and "electricity-containing" assets, as the core carriers of energy security, are entering a long-term allocation window.

Why has the energy security concept suddenly gained prominence? Geopolitical conflicts are forcing a shift, making power assets a core alternative energy source.

**Energy security has become a global consensus, primarily stemming from the global energy supply crisis triggered by escalating geopolitical conflicts.** Currently, geopolitical conflicts are continuing to exceed expectations, with the market generally predicting that the duration of these conflicts will extend further. With the Strait of Hormuz effectively closed, international oil and gas prices have surged dramatically, making countries acutely aware of the significant risks associated with a singular energy supply.

**Against this backdrop, countries around the world are elevating energy security to a strategic height.** Accelerating the construction of alternative energy systems has become a common understanding among nations, and power assets, represented by renewable energy generation, have emerged as the most beneficial direction within alternative energy due to two core advantages:

1.  They possess distributed characteristics, allowing for localized production and usage, significantly reducing the safety risks and costs associated with energy transportation;
    
2.  They have low resource endowment requirements, with renewable resources like wind, solar, and hydro being widely distributed, not constrained by specific resource-producing regions. Countries can build these systems without being limited by geopolitical factors, effectively ensuring their energy self-supply.
    

**From an industrial logic perspective, energy security has shifted from being an "auxiliary consideration" to a "core development principle."** Power assets, as the core implementation carriers of energy security, have had their long-term demand thoroughly activated. This is the underlying logic behind the emergence of the energy security concept and the capital's enthusiasm for "electricity-containing" assets.

Core opportunities under energy security: What should be bought in "electricity-containing" assets?

The core demand for energy security will ultimately translate into the entire power industry chain, from production and transmission to storage. The entire "electricity-containing" industry chain is set to experience an increase in prosperity, with **generation, transmission, and storage being the three core areas for layout**, each having clear industrial logic and performance support.

**\[Generation\]: Power plants are a value undervalued area, overseas computing power opens new space for electricity monetization, and the green power ETF E Fund (562960) is receiving significant attention.**

Power plants are the core starting point of the power industry and the most direct beneficiaries under energy security, currently possessing the dual advantages of low valuation and high growth.

**Green power is a value undervalued area in the industry chain.** Currently, the price-to-earnings ratio of the green power index is less than 20x, positioned at the 54th percentile over the past five years, far below the average level of global energy-related sectors. Driven by the essential demand for energy security, there is clear room for valuation recovery; **China firmly holds the top position in global power supply.** China's installed power generation capacity and output are both globally leading, with power generation exceeding one-third of the world's total, and installed capacity surpassing the total of G7 countries. The advantage in total power is significant, and the proportion of renewable energy sources such as wind and solar power continues to rise, with power supply capacity steadily increasing.

**More importantly, the overseas expansion of computing power has opened up a new monetization channel for power assets, further highlighting the value at the generation end.** Previously, while China's power was strong, it faced challenges in monetization. Besides supplying domestic electricity scenarios, power was difficult to transport and export across oceans, but the rapid development of computing power has changed all of this.

Leveraging the world's largest, most stable, and cheapest power supply system, China converts electricity into AI computing power, exporting inference computing power overseas through large model APIs, achieving "using Chinese electricity to export intelligent services"—when overseas users call domestic AI company APIs, the computation is completed in domestic data centers, consuming electricity from the domestic grid while creating cross-border value. This new monetization model extends the demand from domestic consumption to the global computing power market, significantly enhancing the performance growth elasticity of power generation companies.

**\[Power Delivery End\]: Global demand for grid equipment surges, Chinese companies seize the moment to expand overseas, and the grid equipment ETF E Fund (560390) attracts attention.**

**Efficient power transmission is a crucial guarantee for energy security.** Against the backdrop of global electricity shortages, countries are accelerating the upgrade and transformation of grid infrastructure, leading to an explosive growth in global demand for grid equipment, with significant increases in orders for transmission and distribution, smart meters, and grid automation equipment.

**Chinese companies are seizing the opportunity to accelerate their overseas expansion.** China's grid construction technology is at a globally leading level, with high maturity in ultra-high voltage and smart grid technologies, and a complete industrial chain. The cost-performance ratio of products far exceeds that of international peers, allowing for precise matching of the upgrade needs of various countries' grids, gradually becoming the "first choice" for global grid construction.

**How to view the current valuation of grid equipment?** The key to whether the sector is expensive lies not in the level of valuation but in whether the valuation is overestimated. The rising growth rate of domestic and overseas demand is driving the power equipment industry to switch from "cyclical sector valuation" to "growth sector valuation." In the past, the market assigned a 20 times PE to grid equipment based on the understanding of grid investment as "a small cycle every three years and a large cycle every five years"; however, today, the power demand driven by AI computing is structural and trend-based, not cyclical. When the driving force of the industry undergoes a qualitative change, it will lead to an upward shift in the valuation center, indicating that the potential space for the industry remains considerable.

**\[Energy Storage End\]: Energy storage has shifted from "optional" to "essential," with the prosperity of the industrial chain continuing to rise, and the energy storage battery ETF E Fund (159566) is attracting attention.**

**In the era of new power systems, energy storage is a core link to ensure stable power supply and achieve energy security.** Its role has completely upgraded from a "supplementary option" to a "necessary configuration," and this transformation of identity is driven by the instability on both the supply and demand sides in the new power era At the generation end, new energy has become the main force in power generation, and its instability poses higher demands on the power grid; at the consumption end, AI has become a major electricity consumer, and its high volatility and peak characteristics also make it difficult for traditional power grids to cope. To address the fluctuations in electric power, energy storage has become the core solution and a "necessity" in the new era of electricity.

**From the industry data perspective, the rigid demand for energy storage has been fully realized:** The first quarter is traditionally a slow season for energy storage, but this year it has been "not so slow." In March, many energy storage companies doubled their production and shipment volumes month-on-month, with some inverter companies increasing their production from 50,000-60,000 units in February to around 150,000 units; in the U.S., large-scale storage installations doubled year-on-year in January, while domestic installations in January more than doubled year-on-year, and the bidding scale in February also doubled year-on-year, indicating strong support for high prosperity.

1.  How to view the subsequent space and allocation logic of "electric" assets?

**This round of energy market dynamics far exceeds the geopolitical shocks of 2022.** Referring to the energy sector's performance after the geopolitical conflicts in 2022, energy-related sectors experienced a surge due to geopolitical conflicts at that time. However, the current energy security logic is more robust — the energy crisis in 2022 was mainly due to the supply gap of natural gas in Europe, while the current geopolitical conflicts in the Middle East have impacted the global oil and gas supply system. Coupled with the normalization of conflicts, the urgency of global energy security far exceeds the past, and the determination and strength of various countries to build alternative energy systems are also stronger. This means that the demand for "electric" assets has a stronger sustainability.

**The core logic for the rise of "electric" assets is clear and difficult to reverse:** Escalation of geopolitical conflicts → Increase in global energy security demand → Acceleration of alternative energy construction → Benefiting the entire chain of power assets → Continuous high growth in performance + valuation recovery, and our country is undoubtedly the most benefited from this logical chain globally.

**When global energy security becomes a strategic focus, investing in "electric" assets is no longer a short-term gamble, but a long-term revaluation of the value of the energy revolution.** In the context of ongoing global geopolitical conflicts and accelerated restructuring of energy structures, energy security will become a long-term investment main line, and "electric" assets, as the core carrier, will continue to highlight their allocation value, possessing long-term layout value.

Related products:【Generation end】Green Power ETF E Fund (562960 Connect A/C: 019058/019059);【Transmission end】Power Grid Equipment ETF E Fund (560390);【Storage end】Energy Storage Battery ETF E Fund (159566 Connect A/C: 021033/021034)

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