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Technology thesis · Clean Energy

high conviction growth

Grid modernisation

Grid interconnection, not generation, is now the hard ceiling on both the energy transition and the AI build-out, and transformer and HVDC supply chains hold that ceiling through 2028.

Position maintained continuously · last reviewed Jun 24, 2026

The thesis

Core thesis

The US grid was built for one-way power flow and now has to carry bidirectional renewables, EV charging, distributed storage and – decisively – AI data-centre load, which drove roughly half of all US electricity-demand growth in 2025. Interconnection, not generation, is the ceiling: queues run 4–7 years in the hottest markets (Northern Virginia, Phoenix, Dallas) and the LBNL queue topped ~2,300 GW. The physical hardware decides build pace – large-power-transformer lead times sit at 18–36 months (some HV units quoted to 48), and HVDC converters, GOES electrical steel and HV cable are all tight. The core technologies (HVDC, advanced metering, DERMS, AI orchestration) are mature; deployment speed and supply chain are the constraint, with the IEA putting global grid need above $600B/year by 2030.

State of the art (2026)

The defining 2026 event was SunZia coming online on 18 June - 3,000 MW of HVDC across 550 miles from New Mexico wind to the Southwest, the first major US long-haul transmission in two decades and proof that merchant transmission is financeable. Underneath it the bottleneck is unchanged: large-power-transformer lead times sit at 18-36 months, and roughly 150 GW of data-centre interconnect requests now queue in PJM, ERCOT, CAISO and MISO, dwarfing the renewables backlog. FERC Order 1920 regional planning compliance filings landed through 2025-26, but under chair Laura Swett the commission tilts toward gas and reliability. The constraint that decides build pace is physical hardware - transformers, HVDC converters, GOES electrical steel - far more than software.

The rest of the file

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Signal stack

Evidence stacked leading → lagging

9 signals
talent
research
patent
expert
operational
regulatory
market

Technology-native KPIs

Metrics that predict trajectory, tracked over time

6 tracked
Smart meter penetration
Annual grid investment
US interconnection queue
Grid-scale battery deployments
US large power transformer lead time + capacity
Data center interconnect queue volume

Landscape map

Who builds what — and who depends on whom

106 players · 6 layers

Catalyst calendar

Dated events that will move the position

9 ahead

Technology roadmap

Milestones on the path to maturity

8 milestones

Watchlists

Companies, people and papers — each with a remove-by condition

20 · 19
Companies · 20
People · 19

Decision frameworks

The same call, framed for your desk

Locked
Public Equity
PE / VC
Corporate Leader

Thesis changelog

When our view changed, and why

6 updates

Change our mind

3 disconfirming conditions

The rest is inside

You've read the verdict. The file is much deeper.

The full signal stack, technology-native KPIs tracked over time, the landscape of who depends on whom, the dated catalyst calendar, decision frameworks for every desk, live watchlists and the changelog of every time our call on Grid modernisation has changed — all live inside CanaryIQ.