In this episode of Eversheds Sutherlands Energy Transition Series, Mehal Shah, Investment Director at Gravis, talks to Kiran Arora and Jennie Evans about unlocking capital pathways for the energy transition.
Listen to the podcast here, or read the key takeaways below.
Capital is available, the challenge is structuring risk correctly
Mehal’s central theme in the discussion is that the energy transition is not suffering from a lack of capital or projects, but from a disconnect in how risk and return are allocated across the market. He says investor appetite for energy infrastructure remains strong, but heightened regulatory change and a higher interest rate environment mean investors are demanding greater clarity, resilience and value creation from managers and developers alike.
The energy transition opportunity remains enormous
Despite short-term market pressures, Mehal believes that the long-term fundamentals remain compelling. He says there is significant renewable energy pipeline capacity available across Europe, with substantial investment still required to support electrification, grid infrastructure and growing power demand from sectors such as data centres and AI.
He highlights that the challenge is increasingly about execution: identifying the right projects, structuring them intelligently and deploying capital efficiently.
Experience and active management matter more than ever
A recurring theme throughout the discussion is the importance of experienced managers with deep sector expertise. Mehal emphasised that strong managers differentiate themselves through:
- disciplined risk allocation;
- supply chain and construction expertise;
- sophisticated route-to-market strategies; and
- the ability to originate and execute complex transactions efficiently.
He notes that investors are increasingly looking beyond headline returns and focusing more closely on a manager’s track record, pipeline visibility and ability to navigate changing market conditions.
Core-plus strategies are becoming increasingly attractive
While traditional “core” renewables remain important, Mehal suggests that the most compelling opportunities today sit in “core-plus” infrastructure strategies. These are assets that can deliver enhanced returns through operational optimisation, construction de-risking, supply chain management or innovative revenue structures.
This approach allows investors to access growth and value creation without necessarily taking pure development or first-of-a-kind technology risk.
Transparency and data are critical differentiators
Mehal also touches on the growing importance of transparency and real-time portfolio insight for investors. He highlights Gravis’ investment in its Carapace platform, which provides investors with deeper visibility into underlying asset performance and portfolio management.
Rather than simply presenting raw operational data, the focus is on turning data into meaningful information and insight that helps investors better understand how assets are performing and why.
Data centres and electrification will accelerate infrastructure demand
Looking ahead, Mehal identifies data centres, energy parks and behind-the-meter infrastructure as key growth areas. He notes that accelerating AI adoption and digitalisation will materially increase demand for reliable, 24/7 decarbonised power, reinforcing the need for faster infrastructure deployment and more flexible energy systems.
Policy support is improving, but delivery must accelerate
While acknowledging the UK government’s increasingly supportive rhetoric around the energy transition, Mehal stresses that permitting, grid reform and implementation timelines remain too slow. Faster execution, greater regulatory certainty and improved market mechanisms will all be critical to unlocking the next phase of private capital deployment.
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