Bernstein Taps European Utilities as Key Beneficiaries of EV Infrastructure Spending

European electricity network operators are poised to benefit from a significant wave of capital expenditure required to support the widespread adoption of electric vehicles (EVs), according to a new report from Bernstein titled the "2026 Electric Revolution."

Grid Investment Driven by EV Demand

Bernstein's research highlights that preparing electricity grids for wider EV charging deployment will be a primary driver of capital spending over the next decade. The report notes that the most significant impact and investment will be required in electricity distribution networks.

The need for this buildout is underscored by consumer sentiment. A 2024 EY survey cited by Bernstein found that the lack of charging stations remains a key barrier to EV adoption for 27% of respondents. Despite existing obstacles like slow grid connection processes and insufficient capacity in some areas, Bernstein views electricity network operators as offering attractive defensive growth characteristics as the energy transition accelerates.

Top Utility Picks

The research firm identified five European utility companies that it believes are well-positioned to capitalize on this trend, assigning them 'Outperform' recommendations:

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• EDP (Energias de Portugal): Named as Bernstein's top pick, the company has the most exposure to electricity distribution grids among the rated utilities, positioning it to benefit directly from grid digitization and capacity investments.
• Terna: The Italian transmission system operator (TSO) is expected to play a key role in the broader grid upgrades needed to support EV charging expansion.
• Redeia: As Spain's grid operator, it is also positioned to participate in infrastructure investments driven by increased electricity demand.
• REN (Redes Energéticas Nacionais): Portugal's TSO will also benefit from grid capacity enhancements required for a robust EV charging rollout.
• Elia Group: The Belgian-German TSO completes the list of Bernstein's top-rated companies in the space.

Near-Term Catalyst for Utilities

Bernstein analysts noted that compared to less mature decarbonization technologies, such as heat pumps, the demand from EV charging represents a more significant and immediate catalyst for electricity network operators.

The report concludes that improving the speed and availability of the EV charging experience is a critical prerequisite for pushing electric vehicles into the mainstream market. This necessity directly translates into a sustained period of investment for the utility companies that own and operate the underlying grid infrastructure.